FG denies spending N8tn outside budget, says claims misrepresent IMF report

Nigeria's Federal Government has strongly refuted allegations of spending over 8 trillion naira outside its approved budget, labeling such claims as false and a misrepresentation of the International Monetary Fund's (IMF) 2026 Article IV Consultation Report. The government asserts that reports suggesting approximately two percent of Nigeria's Gross Domestic Product (GDP) was spent outside the budgetary framework are misleading.

Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, emphasized that the Federal Government adheres strictly to constitutional and statutory frameworks for public finance. He stated that public funds are withdrawn and spent only in line with the Constitution and laws enacted by the National Assembly, refuting the existence of a "shadow budget."

Oyedele explained that government spending is executed through duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities approved by the National Assembly. He also clarified that multi-year capital projects, implemented under existing laws and approved rollover provisions, should not be mistaken for extra-budgetary expenditures. The minister challenged those making allegations of secret spending without legislative approval to provide credible evidence.

Furthermore, the minister detailed that Nigeria's public finance system encompasses statutory transfers, first-line charges, and intervention mechanisms established by Acts of the National Assembly. These include allocations to development commissions, revenue collection retention, approved capital expenditures for specific agencies and the Federal Capital Territory, special interventions for national priorities like security and infrastructure, and debt service obligations. Oyedele stressed that these expenditures are lawful, publicly disclosed in fiscal reports, and subject to oversight and audit, asserting that differences in presentation under international reporting standards do not signify illegal spending. He also rejected suggestions that the reported amount indicated an increase in Nigeria's fiscal deficit.

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The Federal Government does not operate a shadow budget or expend public funds outside the constitutional and statutory framework established for public finance.