The Federal Government has dismissed reports alleging that more than ₦8 trillion was spent outside the Nigeria budget spending framework, describing the claims as false and based on a misinterpretation of the International Monetary Fund’s 2026 Article IV Consultation Report. In a statement issued on Sunday, Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said the reports could mislead the public by creating an inaccurate picture of Nigeria’s public financial management system.
Oyedele maintained that the Federal Government does not operate a “shadow budget” or spend public funds outside the provisions of the Constitution. He cited Sections 80 to 83 and 162 of the 1999 Constitution (as amended), explaining that withdrawals and expenditures from public funds can only occur in accordance with constitutional provisions and laws passed by the National Assembly.
According to the minister, Nigeria budget spending is executed through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities authorised by lawmakers. He also clarified that capital projects spanning several financial years are implemented under existing legal provisions, including approved capital rollover mechanisms, and should not be mistaken for unauthorised expenditure.
Oyedele described allegations that trillions of naira had been secretly spent without legislative approval as inaccurate. He argued that those making the claims had failed to identify any government project executed outside the appropriation process or provide verifiable evidence to support the accusations. The minister further explained that Nigeria’s fiscal system includes statutory transfers, first-line charges and intervention mechanisms established through Acts of the National Assembly.
These include statutory allocations to development commissions and agencies, revenue collection costs retained by designated agencies, approved capital expenditure for specific agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure and disaster response, as well as debt servicing obligations. He noted that all such expenditures are lawful, publicly reported and subject to oversight and audit.
Addressing concerns that the reported figure reflected an increase in Nigeria’s fiscal deficit, Oyedele said fiscal deficits are determined by the relationship between government revenue and expenditure, not by the financing method adopted for approved projects.
He explained that the IMF’s observations centred on the comprehensiveness, timing and presentation of fiscal reporting rather than questioning the legality of Nigeria budget spending. According to the minister, the Federal Government is already implementing reforms aimed at aligning Nigeria’s budget presentation with international fiscal reporting standards.
Oyedele recalled that President Bola Ahmed Tinubu, while presenting the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, called for the harmonisation of multiple budget frameworks into a single and more transparent system.
He added that ongoing reforms have strengthened budget credibility, improved revenue administration, enhanced treasury management and accelerated the digitalisation of government financial processes. The minister said these reforms have received positive recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
While welcoming public scrutiny of government finances, Oyedele urged commentators to rely on verified facts and a proper understanding of Nigeria’s fiscal and constitutional framework, warning that misrepresenting technical observations undermines informed public debate and democratic accountability.
