The Federal Government has refuted claims that it spent more than ₦8 trillion outside the approved national budget, insisting that all public expenditures are authorised by law and carried out within Nigeria’s constitutional framework.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said reports suggesting that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent without legislative approval were inaccurate and misleading.
According to the minister, the allegations, reportedly arising from references to the International Monetary Fund’s 2026 Article IV Consultation Report, wrongly implied that the Federal Government operates a “shadow budget” outside the country’s legal financial framework.
“For the avoidance of doubt, the Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” Oyedele stated.
He explained that Sections 80 to 83 and 162 of the 1999 Constitution, as amended, clearly stipulate that public funds can only be withdrawn and spent in accordance with constitutional provisions and laws enacted by the National Assembly.
Oyedele noted that federal spending is executed through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations passed by lawmakers.
He added that multi-year capital projects, which often span multiple fiscal years, are implemented under existing legal provisions, including approved capital rollovers where necessary.
He stressed that such arrangements are standard practice in public financial management and should not be interpreted as expenditure outside the approved budget.
The minister challenged those making the allegations to identify any specific projects allegedly executed without appropriation or legal authorisation.
“Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” he said.
Oyedele further explained that Nigeria’s fiscal structure includes statutory transfers, first-line charges and intervention mechanisms established through Acts of the National Assembly.
These, he said, include statutory allocations to legally established development commissions and agencies, cost-of-collection provisions for revenue-generating institutions, capital projects funded through separate statutory budgets, special interventions addressing national priorities, debt servicing obligations and other statutory transfers.
According to the minister, these expenditures are lawful, publicly disclosed and subject to oversight, auditing and accountability processes.
He added that differences between the presentation of such expenditures in fiscal reports and annual appropriation laws often result from international financial reporting standards and should not be mistaken for unlawful spending.
Oyedele also dismissed claims that the reported ₦8 trillion represented an increase in Nigeria’s fiscal deficit, explaining that fiscal deficits are determined by the gap between total government revenue and expenditure rather than the financing source of approved projects.
He maintained that the IMF’s observations were primarily aimed at improving the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government spending.
The minister recalled that President Bola Tinubu, while presenting the 2026 Appropriation Bill to the National Assembly in December 2025, advocated harmonising multiple government budgets into a single, integrated fiscal framework.
Reaffirming the administration’s commitment to transparency and prudent fiscal management, Oyedele said ongoing reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of public financial processes.
He added that these reforms have earned recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and leading global media organisations.
While welcoming public scrutiny of government finances, the minister urged commentators to base their analyses on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.
He reiterated that the Federal Government would continue working with the National Assembly, oversight institutions, development partners and citizens to strengthen fiscal governance in line with international best practices.
