Nigeria denies spending trillions outside budget, cites IMF report

Nigeria's Minister of Finance, Taiwo Oyedele, has strongly denied allegations that the federal government spent approximately ₦8 trillion outside of its approved budgets. The claims, which suggested spending equivalent to 2% of the nation's GDP went unreported, were based on a recent report from the International Monetary Fund (IMF).

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These claims are incorrect and risk misleading the public regarding the government’s financial management

Oyedele's rebuttal specifically addressed commentary stemming from the IMF's Article IV Consultation Report on Nigeria and statements by the IMF Resident Representative in Nigeria, Christian Ebeke. Ebeke had indicated that about 2% of GDP in expenditures were not reported, potentially obscuring the country's true financing needs and fiscal deficit.

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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.

Following the IMF's disclosure, some Nigerian political figures, including former Vice President Atiku Abubakar, called for investigations into the alleged omission of public spending from recent budgets. However, Oyedele dismissed these claims as "incorrect and risk misleading the public regarding the government's financial management."

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Under Sections 80 – 83 and 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), public funds may only be withdrawn and expended in accordance with the Constitution and laws enacted by the National Assembly.

In a statement, the minister emphasized that the Federal Government operates strictly within constitutional and statutory frameworks. He cited Sections 80-83 and 162 of Nigeria's 1999 Constitution, which mandate that public funds can only be withdrawn and expended in accordance with the Constitution and laws passed by the National Assembly. Oyedele clarified that all expenditures are incurred pursuant to duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities. He also noted that multi-year capital projects spanning multiple budgets are implemented in line with extant laws and approved provisions for capital rollovers, characterizing these as standard public financial management practices, not secret spending.

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Accordingly, Federal Government expenditure is incurred pursuant to duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities enacted by the National Assembly.