Oyedele said the government does not operate a ‘shadow budget’ and that all public expenditures are made within the constitutional and legal framework approved by the National Assembly.
By Deborah Hassan
365Daily – The Federal Government (FG) has dismissed claims that it spent more than N8 trillion outside the approved budget, insisting that the allegations stem from a misrepresentation of observations contained in the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the government does not operate a “shadow budget” and that all public expenditures are made within the constitutional and legal framework approved by the National Assembly.
The clarification followed public commentary suggesting that about two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over N8 trillion, was spent outside the 2026 budget based on remarks attributed to the IMF’s Resident Representative in Nigeria and the Fund’s latest Article IV report.
Describing the interpretation as incorrect and misleading, the ministry said there was no evidence that the Federal Government had secretly spent trillions of naira without legislative approval.
“The Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” the statement said.
The ministry explained that under Sections 80 to 83 and 162 of the 1999 Constitution, public funds can only be withdrawn and spent in accordance with laws passed by the National Assembly. It noted that federal spending is executed through Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities enacted by the legislature.
It added that some capital projects span multiple fiscal years and are implemented through approved capital rollovers, stressing that such arrangements are recognised under Nigeria’s public financial management framework and should not be mistaken for off-budget spending.
According to the ministry, several categories of expenditure, including statutory transfers, debt service obligations, first-line charges, intervention funds, security spending, disaster response programmes and allocations to agencies established by law, are authorised under existing legislation and disclosed in government fiscal reports.
It maintained that while these expenditures may be presented differently under international fiscal reporting standards, they are neither secret nor unlawful.
The Federal Government also rejected claims that the reported N8 trillion automatically translated into a higher fiscal deficit, explaining that the deficit is determined by the relationship between government revenue and total expenditure rather than the financing mechanism used for approved projects.
The ministry argued that the IMF’s observations focused mainly on improving the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government spending.
It recalled that President Bola Tinubu had, while presenting the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, requested lawmakers to harmonise multiple and overlapping budgets into a single fiscal framework to improve transparency and budget management.
The ministry said the move formed part of ongoing reforms aimed at strengthening public financial management, adding that the IMF and other international institutions had acknowledged Nigeria’s efforts in improving budget credibility, treasury management, revenue administration and the digitalisation of public finance.
While welcoming public scrutiny of government finances, the ministry urged commentators to distinguish between budget appropriations, expenditure authorisation, financing arrangements and fiscal reporting standards.
It warned that portraying technical observations by the IMF as evidence of unlawful expenditure could mislead the public and undermine informed debate on fiscal governance.
The Federal Government reaffirmed its commitment to transparency, accountability and prudent management of public resources, pledging to continue working with the National Assembly, oversight institutions and development partners to strengthen Nigeria’s fiscal governance in line with international best practices.