The Federal Government has denied claims that it spent more than ₦8 trillion outside the approved 2025 budget, describing the allegation as false and based on a misrepresentation of the International Monetary Fund’s 2026 Article IV Consultation Report.
The government said reports alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the budgetary framework were misleading and created an inaccurate impression of the country’s public financial management system.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, said the Federal Government does not operate a “shadow budget” or expend public funds outside the constitutional and legal framework.
“The Federal Government does not operate a shadow budget or expend public funds outside the constitutional and statutory framework established for public finance,” Oyedele said.
He explained that Sections 80 to 83 and 162 of the 1999 Constitution (as amended) clearly provide that public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
According to the minister, government expenditure is undertaken through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities authorised by the National Assembly.
Oyedele also noted that multi-year capital projects, which extend across several budget cycles, are implemented under existing laws and approved capital rollover provisions, stressing that such projects should not be interpreted as expenditure outside the budget.
He described as inaccurate claims that trillions of naira had been secretly spent without legislative approval, arguing that those making the allegations had failed to identify any project executed without appropriation or provide credible evidence to support their assertions.
The minister further explained that Nigeria’s public finance framework includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.
According to him, these cover statutory allocations to development commissions and government agencies, cost-of-collection deductions retained by designated revenue agencies, separately approved capital expenditure for certain agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure and disaster response, as well as debt service obligations.
He stressed that all such expenditures are lawful, publicly disclosed through official fiscal reports and subject to legislative oversight and audit, adding that differences in their presentation under international reporting standards should not be misconstrued as evidence of illegal spending.
Oyedele also dismissed suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit.
He explained that fiscal deficits are determined by the gap between total government revenue and total expenditure, noting that the financing arrangements for duly approved projects do not automatically widen the deficit.
According to the minister, the IMF’s observation related primarily to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government spending.
He added that the Federal Government is already implementing reforms aimed at aligning the country’s budget presentation and fiscal reporting with international standards.
