The Federal Government has dismissed claims that more than ₦8 trillion, equivalent to about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the approved budget, describing the allegation as false and a misrepresentation of findings contained in the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.
In a statement issued on Sunday, the Federal Ministry of Finance insisted that the government does not operate a “shadow budget” and that all public expenditures are carried out within the constitutional and legal framework governing public finance.
The ministry stated that recent public commentaries referencing the IMF report had wrongly suggested that trillions of naira were spent without legislative approval, warning that such claims could mislead Nigerians about the country’s fiscal management practices.
“The Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” the statement said.
According to the ministry, Sections 80 to 83 and 162 of the 1999 Constitution (as amended) require that public funds can only be withdrawn and spent in accordance with laws enacted by the National Assembly.
It explained that government expenditures are incurred through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations, while multi-year capital projects are implemented in line with extant laws and approved rollover provisions.
The government argued that suggestions that trillions of naira had been secretly spent outside legislative approval lacked evidence.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should identify the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” the ministry stated.
The statement further clarified that several categories of expenditure often cited in fiscal reports are legally established and approved by law.
These include statutory transfers to development commissions and agencies, debt servicing obligations, intervention funds, security-related spending, disaster response programmes and other national priority projects.
According to the ministry, such expenditures are neither illegal nor hidden from public scrutiny.
“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,” it said.
The ministry also rejected claims that the reported amount represented an increase in Nigeria’s fiscal deficit, explaining that deficit calculations are based on the relationship between total government revenue and expenditure rather than the funding mechanism used for projects.
It noted that the IMF’s observations were largely related to the comprehensiveness and presentation of fiscal reporting rather than the legality of government spending.
“Like many countries, Nigeria continues to strengthen the alignment between budget presentation and international fiscal reporting standards as part of ongoing public financial management reforms,” the statement added.
The ministry recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill to a joint session of the National Assembly in December 2025, called for an end to the practice of operating multiple and overlapping budgets in favour of a single, harmonised framework.
Highlighting ongoing reforms, the government said recent measures had improved budget credibility, revenue administration, treasury management and the digitalisation of public financial processes.
The ministry added that these reforms had received positive recognition from the IMF, international credit rating agencies, development partners and investors.
While affirming its commitment to transparency and accountability, the Federal Government urged Nigerians to base public discussions on verified facts and a proper understanding of the country’s fiscal framework.
“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability,” the statement said.
The government pledged to continue working with the National Assembly, oversight institutions, development partners and citizens to strengthen fiscal governance and align public financial management with international best practices.
