The Federal Government has dismissed claims that it spent about two per cent of Nigeria’s Gross Domestic Product (GDP)—estimated at over ₦8 trillion—outside the approved budget, describing the reports as a misrepresentation of comments made by the International Monetary Fund (IMF) Resident Representative in Nigeria and the organisation’s 2026 Article IV Consultation Report.

The government said the claims were inaccurate and could mislead the public about the country’s fiscal management.

In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework governing public finance.

He explained that sections 80–83 and 162 of the 1999 Constitution (as amended) provide that public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.

According to him, all Federal Government spending is backed by duly enacted Appropriation Acts, Supplementary Appropriation Acts or other statutory authorisations approved by the National Assembly.

Oyedele added that multi-year capital projects, which span several budget cycles, are implemented in line with existing laws and approved capital rollover provisions where applicable.

“These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget,” he said.

He described as inaccurate suggestions that trillions of naira were secretly spent without legislative approval, arguing that such allegations should identify the specific projects allegedly executed without appropriation or legal authority and provide credible evidence to support the claims.

“To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture.

“For the purpose of public education, it is important to distinguish between appropriation, expenditure authorisation, financing and fiscal reporting,” he added.

Oyedele said Nigeria’s public finance framework includes several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.

These, he said, include statutory allocations to development commissions and other agencies created by law, cost of collection and administration retained by designated revenue-collecting agencies, capital expenditure approved under separate budgets for some agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure and disaster response, as well as debt service obligations and other statutory transfers.

The minister maintained that the expenditures are neither secret nor illegal, stressing that they are established by law, disclosed in official fiscal reports and subject to oversight, audit and accountability mechanisms.

“Their treatment for reporting purposes may differ from their presentation in the annual Appropriation Act, particularly under international statistical and reporting standards adopted by the Federal Government. Such classification differences should not be misrepresented as evidence of unlawful expenditure,” he said.

Oyedele also rejected claims that the reported amount represented an increase in Nigeria’s budget deficit.

“A fiscal deficit is determined by the relationship between total government revenues and total government expenditures. Whether a capital project is financed through annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms or other lawful financing arrangements does not, by itself, increase the fiscal deficit,” he said.

He further explained that the IMF’s observation related primarily to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government expenditure.

According to him, Nigeria, like many other countries, is working to improve the alignment between its budget presentation and international fiscal reporting standards as part of ongoing public financial management reforms.

Oyedele recalled that President Bola Tinubu had, during the presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, urged lawmakers to end the practice of operating multiple and overlapping budgets and instead adopt a single, harmonised budget framework.

He said the Federal Government remains committed to prudent fiscal management, transparency and accountability, adding that recent reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.

According to him, these reforms have been acknowledged by the IMF, other multilateral institutions, international credit rating agencies, investors and major global media organisations.

While describing public debate as essential in a democracy, Oyedele urged commentators to base their arguments on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.

“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability,” he said.

He added that the Federal Government would continue to uphold the rule of law, ensure transparency in the management of public resources and work with the National Assembly, oversight institutions, development partners and Nigerians to further strengthen fiscal governance in line with international best practices.

The controversy followed reported comments by the IMF’s Resident Representative in Nigeria, Christian Ebeke, that the country allegedly failed to record public spending equivalent to about two per cent of its Gross Domestic Product (GDP) in recent official budgets.

According to the IMF, the omission—linked partly to major government projects executed outside the formal budget framework—made Nigeria’s fiscal deficit appear smaller than its actual financing needs and complicated fiscal transparency.

The International organisation, however, noted that the Federal Government had begun taking steps to address the issue by revising budget laws and improving fiscal reporting.

The IMF’s disclosure drew sharp reactions from opposition figures, including former Vice President Atiku Abubakar and a former Anambra State governor, Peter Obi.

Atiku urged the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the National Assembly and the Auditor-General of the Federation to investigate what he described as about ₦8.8 trillion in off-budget spending, alleging that the funds were spent without legislative approval or public accountability.

Obi also raised concerns over the report, describing it as evidence of “grand corruption” and arguing that the alleged ₦8.83 trillion expenditure was outside legislative oversight, and called for greater transparency and accountability in the management of public finances. (Channels TV)

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