FG Denies Spending ₦8tn Outside Approved Budget

The Federal Government has dismissed reports alleging that it spent more than ₦8 trillion outside the 2026 budget, insisting that the claims misrepresent the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report and do not reflect Nigeria’s fiscal reality.

The government said the allegations wrongly interpreted the IMF’s observations to suggest that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the approved budget, describing the claim as false and misleading.

This was contained in a statement issued on Sunday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

The response followed comments by the IMF, which said Nigeria failed to report public spending equivalent to about two per cent of GDP in recent official budgets, making the country’s fiscal deficit appear smaller than it actually was.

Speaking in Lagos, the IMF Resident Representative in Nigeria, Christian Ebeke, said, “So far we think that there are about two per cent of GDP of expenditure that were not reported that should be reported and should be recorded, so that this statistical discrepancy will disappear.”

The IMF comments prompted criticism from opposition figures, including former Vice President Atiku Abubakar and the National Democratic Party’s presidential candidate, Peter Obi, who accused President Bola Tinubu’s administration of corruption and demanded an investigation.

Rejecting the allegations, Oyedele said the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework.

“The Federal Government has noted recent public commentary alleging that approximately two per cent of GDP amounting to over ₦8 trillion was spent outside the approved budget based on references to the IMF Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.

“These claims are incorrect and risk misleading the public regarding the government’s financial management,” the statement said.

The minister explained that Sections 80 to 83 and 162 of the 1999 Constitution permit the withdrawal and expenditure of public funds only in accordance with the Constitution and laws enacted by the National Assembly.

He said all Federal Government spending is carried out through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory approvals granted by the National Assembly.

Oyedele added that multi-year capital projects executed across different budget cycles and approved capital rollovers are recognised components of public financial management and should not be mistaken for off-budget spending.

“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. 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.

He also clarified that statutory transfers, debt service obligations, first-line charges and intervention mechanisms created through Acts of the National Assembly form part of Nigeria’s lawful public finance framework.

According to him, these include statutory allocations to development commissions, revenue collection costs retained by designated agencies, separately approved capital budgets for certain agencies and the Federal Capital Territory, security and infrastructure interventions, disaster response programmes and debt servicing obligations.

“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit and accountability mechanisms,” he stated.

Oyedele further dismissed suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit.

“A fiscal deficit is determined by the relationship between total government revenues and total government expenditures. Whether a capital project is financed through annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms, or other lawful financing arrangements does not, by itself, increase the fiscal deficit,” he added.

The minister maintained that the IMF’s observations were aimed at improving the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government expenditure.

He noted that President Bola Tinubu had already urged the National Assembly during the presentation of the 2026 Appropriation Bill on December 19, 2025, to end the practice of operating multiple and overlapping budgets in favour of a single, harmonised budget framework.

Oyedele reaffirmed the Federal Government’s commitment to prudent fiscal management, transparency and accountability, saying ongoing reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of public financial processes.

“The Federal Government will continue to uphold the rule of law, maintain transparency in the management of public resources, and work with the National Assembly, oversight institutions, development partners and the Nigerian people to further strengthen fiscal governance in line with international best practices,” he said.

He urged Nigerians to base public debate on verified facts and a proper understanding of the country’s constitutional and fiscal framework, warning that misrepresenting technical observations as evidence of unlawful expenditure undermines informed public discourse.