FG denies spending N8tn outside budget, defends fiscal transparency
Minister of Finance and Coordinating Minister of the Economy Federal Republic of Nigeria, Taiwo Oyedele
Nike Popoola
The Federal Government has dismissed allegations that more than ₦8 trillion was spent outside the approved budget, insisting that all public expenditures are carried out within Nigeria’s constitutional and legal framework.
In a statement issued on Sunday by the Minister of Finance and Coordinating Minister of the Economy Federal Republic of Nigeria, Taiwo Oyedele, the Ministry said claims suggesting that about two per cent of the country’s Gross Domestic Product (GDP) was expended outside legislative approval were a misrepresentation of the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report and risked misleading Nigerians.
The ministry stressed that the Federal Government does not operate a “shadow budget” and cannot lawfully withdraw or spend public funds outside the provisions of the Constitution and Acts passed by the National Assembly.
According to the ministry, all government spending is undertaken through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by lawmakers.
It explained that multi-year capital projects, statutory transfers, debt service obligations and intervention programmes established by law are legitimate components of Nigeria’s public finance system and should not be misconstrued as illegal or off-budget expenditure.
The government further noted that allegations of trillions of naira being secretly spent lacked credible evidence, urging critics to identify any specific projects allegedly executed without legislative approval rather than relying on speculation.
The ministry also clarified that differences in the presentation of fiscal data under international reporting standards should not be interpreted as evidence of unlawful spending, explaining that reporting classifications may differ from the structure of annual appropriation laws.
It added that the amount referenced in public discussions does not represent an increase in the country’s fiscal deficit, noting that the deficit is determined by the relationship between government revenue and expenditure, regardless of the financing mechanism adopted for legally approved projects.
The statement said the IMF’s observations were primarily related to the comprehensiveness and presentation of fiscal reporting rather than the legality of government expenditure.
It recalled that President Bola Tinubu had, during the presentation of the 2026 Appropriation Bill to the National Assembly, called for an end to the practice of running multiple and overlapping budgets in favour of a unified budget framework.
Reaffirming its commitment to prudent fiscal management, transparency and accountability, the Federal Government said ongoing reforms in revenue administration, treasury management and digitalisation of financial processes have strengthened Nigeria’s public financial management system and received recognition from the IMF and other international institutions.
