FG Denies Spending ₦8 Trillion Outside Approved Budget
ABUJA – The Federal Government has dismissed claims that it spent more than ₦8 trillion, equivalent to about 2 percent of Nigeria’s Gross Domestic Product (GDP), outside the approved national budget, describing the allegations as inaccurate and misleading.
In a statement signed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, the government said recent public commentary misrepresented the International Monetary Fund (IMF) 2026 Article IV Consultation Report and wrongly suggested that the country operates a “shadow budget.”
According to the minister, the Federal Government does not spend public funds outside the constitutional and legal framework governing public finance.
He explained that under Sections 80–83 and 162 of the 1999 Constitution (as amended), all public funds can only be withdrawn and spent with the approval of the National Assembly through Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorisations.
Oyedele noted that multi-year capital projects, statutory transfers, debt servicing, intervention funds, and expenditures approved under separate legal frameworks are lawful components of Nigeria’s public finance system and should not be mistaken for unapproved spending.
He added that such expenditures are disclosed in official fiscal reports and are subject to legislative oversight, audits, and other accountability mechanisms.
The minister also rejected claims that the reported amount represented an increase in Nigeria’s fiscal deficit, explaining that the deficit is determined by the relationship between total government revenue and expenditure, not by how approved projects are financed or reported.
According to him, the IMF’s observations relate mainly to improving the comprehensiveness and presentation of fiscal reporting in line with international standards, rather than questioning the legality of government spending.
He recalled that President Bola Ahmed Tinubu had already urged the National Assembly during the presentation of the 2026 Appropriation Bill to harmonise multiple and overlapping budgets into a single, unified budget framework.
The minister reaffirmed the Federal Government’s commitment to prudent fiscal management, transparency, and accountability, noting that ongoing reforms in revenue administration, treasury management, and digital financial systems have received positive recognition from the IMF, international credit rating agencies, investors, and other development partners.
He urged the public to base discussions on verified facts and a proper understanding of Nigeria’s constitutional and fiscal framework, stressing that technical observations should not be misrepresented as evidence of unlawful government expenditure.
