The Federal Government has denied reports alleging that it spent more than N8 trillion outside the approved budget, describing the claim as false and a misrepresentation of 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, Mr. Taiwo Oyedele, said suggestions that the government expended funds equivalent to about two per cent of Nigeria's Gross Domestic Product (GDP) outside the budgetary framework were misleading and created an inaccurate picture of the country's public financial management.
According to Oyedele, the Federal Government operates strictly within the constitutional and legal provisions governing public finance.
"The Federal Government does not operate a shadow budget or expend public funds outside the constitutional and statutory framework established for public finance," the minister said.
He explained that Sections 80 to 83 and 162 of the 1999 Constitution (as amended) require that all public funds be withdrawn and spent only in accordance with the Constitution and laws passed by the National Assembly.
The minister noted that government expenditure is undertaken through duly enacted appropriation acts, Supplementary Appropriation Acts and other statutory authorities approved by lawmakers. He added that multi-year capital projects, which extend across several budget cycles, are implemented under existing legal provisions and approved capital rollover arrangements and should not be interpreted as spending outside the budget.
Oyedele described claims that trillions of naira had been secretly spent without legislative approval as inaccurate, stressing that those making the allegations had failed to identify any project executed without appropriation or provide credible evidence to support their assertions.
He further explained that Nigeria's public finance framework includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly. These, he said, cover statutory allocations to development commissions and agencies, cost-of-collection retained by designated revenue agencies, separately approved capital expenditure for certain agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure and disaster response, as well as debt service obligations.
According to the minister, these expenditures are lawful, publicly disclosed in fiscal reports and subject to oversight and audit. He noted that differences in how they are presented under international reporting standards should not be mistaken for evidence of unlawful spending.
Oyedele also dismissed claims that the reported amount represented an increase in Nigeria's fiscal deficit, explaining that fiscal deficits are determined by the relationship between total government revenue and total expenditure, not by the financing method adopted for approved projects.
He said the IMF's observation focused mainly on the comprehensiveness, timing and presentation of Nigeria's fiscal reporting rather than the legality of government expenditure, adding that the Federal Government was already implementing reforms to align its budget presentation with international fiscal reporting standards.
The minister recalled that President Bola Ahmed Tinubu, while presenting the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, urged lawmakers to end the practice of operating multiple and overlapping budgets by harmonising them into a single, unified framework.
Reaffirming the administration's commitment to prudent fiscal management, transparency and accountability, Oyedele said ongoing reforms had improved budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
He added that the reforms had received recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
While welcoming public scrutiny of government finances, the minister urged commentators to rely on verified facts and a proper understanding of Nigeria's constitutional and fiscal framework.
"Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability," he said.
