FG Denies Spending ₦8tn Outside Budget, Says Claims Misrepresent IMF Report

The Federal Government has dismissed claims that it spent more than ₦8 trillion, equivalent to about two per cent of Nigeria’s Gross Domestic Product (GDP), outside the approved budget, describing the allegations as inaccurate and a misrepresentation of the International Monetary Fund (IMF)’s 2026 Article IV Consultation Report.

In a statement issued on Sunday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the reports had created a false impression about the Federal Government’s management of public finances.

According to the minister, the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework governing public finance in Nigeria.

He explained that under Sections 80 to 83 and 162 of the 1999 Constitution (as amended), all public funds can only be withdrawn and spent in accordance with the Constitution and laws passed by the National Assembly.

Oyedele stated that government expenditures are executed through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations approved by lawmakers, adding that multi-year capital projects implemented across several budget cycles are also backed by existing laws and approved capital rollover provisions.

He described suggestions that trillions of naira had been secretly spent without legislative approval as unfounded, stressing that anyone making such allegations should identify the specific projects involved and provide verifiable evidence.

The minister further clarified that the controversy stemmed from a misunderstanding of the distinction between appropriation, expenditure authorisation, financing arrangements and fiscal reporting.

According to him, Nigeria’s public finance framework includes several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly. These cover statutory allocations to development commissions and agencies, cost-of-collection deductions by revenue-generating agencies, capital expenditure approved under separate budgets for certain agencies and the Federal Capital Territory, security and emergency interventions authorised by law, as well as debt service obligations and other statutory transfers.

He maintained that these expenditures are lawful, publicly disclosed through official fiscal reports and subject to oversight and audit, noting that differences in how they are presented under international reporting standards should not be interpreted as evidence of illegal spending.

Oyedele also rejected claims that the reported amount reflected an increase in Nigeria’s fiscal deficit, explaining that a deficit is determined by the gap between government revenue and expenditure rather than by the financing mechanism used for approved projects.

He said the IMF’s observations focused mainly on improving the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting, not on the legality of government expenditure.

The minister noted that President Bola Ahmed Tinubu had already acknowledged the need to streamline Nigeria’s budgeting process by urging the National Assembly, during the presentation of the 2026 Appropriation Bill in December 2025, to eliminate multiple and overlapping budgets in favour of a single, harmonised framework.

Reaffirming the government’s commitment to transparency and accountability, Oyedele said recent reforms had strengthened public financial management through improved budget credibility, enhanced revenue administration, digitalisation of government financial processes and stronger treasury management.

He added that these reforms have been recognised by the IMF, other multilateral institutions, international credit rating agencies, investors and major global media organisations.

The minister 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.

He assured that the Federal Government would continue working with the National Assembly, oversight institutions, development partners and citizens to deepen fiscal governance in line with international best practices.