The Federal Government today dismissed claims that more than ₦8 trillion was spent outside the 2026 approved budget, describing the allegation as false and warning that such claims could mislead Nigerians about the country’s public finance system.
The clarification came from the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, in response to public commentaries linking the alleged off-budget spending to the International Monetary Fund (IMF) Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
Oyedele said the reports wrongly suggested that about two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, had been spent outside legislative approval, stressing that no such practice exists under the country’s financial management framework.
He stated that, “The Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance.”
He explained that the Constitution permits withdrawals and expenditure of public funds only under laws passed by the National Assembly, noting that government spending is carried out through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory approvals.
He added that multi-year capital projects often run across different budget cycles and are executed under existing laws, including approved capital rollovers, saying such projects should not be mistaken for spending outside the budget.
Rejecting the allegation of secret expenditure, Oyedele said, “It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval.”
He challenged those making the claims to identify specific projects allegedly executed without appropriation and provide verifiable evidence to support such assertions.
Oyedele also explained that several categories of public expenditure are authorised by law outside the annual Appropriation Act’s presentation format. These include statutory transfers, debt servicing, intervention programmes, capital expenditure for some agencies and the Federal Capital Territory, as well as allocations approved under separate legal provisions.
He said such expenditures are “neither secret nor illegal” because they are established by law, disclosed in fiscal reports and subjected to oversight, audit and accountability processes.
The minister also dismissed claims that the reported amount reflected a higher fiscal deficit, explaining that budget deficits are determined by the relationship between government revenue and expenditure, not by the financing structure of approved projects.
On the IMF report, he said, “The IMF’s observation relates primarily to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure.”
He recalled that President Bola Ahmed Tinubu had already urged the National Assembly during the presentation of the 2026 Appropriation Bill to harmonise multiple and overlapping budgets into a single framework.
Oyedele maintained that the government remains committed to prudent fiscal management, transparency and accountability, pointing to reforms that have strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
He urged members of the public to base discussions on verified facts, warning that presenting technical fiscal reporting issues as unlawful expenditure distorts public understanding and weakens informed national debate.