Federal Government Dismisses Allegation of N8tn Illegal Spending Outside Budget

The Federal Government has refuted reports claiming it spent over N8 trillion outside the approved budget, insisting that the allegation is false and based on a misunderstanding of the IMF’s 2026 Article IV Consultation Report on Nigeria.

Reacting to the reports on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said suggestions that about two per cent of Nigeria’s GDP was spent outside the budget process were misleading and could create a wrong perception about the country’s fiscal management.

Oyedele stated that the government does not run any unofficial or “shadow” budget, stressing that all public spending is carried out within constitutional and legal provisions.

“The Federal Government does not operate a shadow budget or expend public funds outside the constitutional and statutory framework established for public finance,” he said.

The minister pointed to Sections 80 to 83 and 162 of the 1999 Constitution, explaining that withdrawals and expenditures of public funds must comply with constitutional provisions and laws passed by the National Assembly.

He explained that government spending is implemented through approved Appropriation Acts, supplementary budgets and other lawful authorities recognised by the legislature.

Oyedele also clarified that long-term capital projects extending across multiple budget years are executed under approved rollover arrangements and existing laws, noting that such projects should not be labelled as off-budget spending.

He described claims that trillions were secretly spent without parliamentary approval as baseless, arguing that no evidence had been presented to show any project carried out without appropriation.

The minister further noted that Nigeria’s public finance framework accommodates statutory transfers, first-line charges and intervention programmes created by Acts of the National Assembly.

According to him, these expenditures include allocations to development agencies, debt servicing, security interventions, infrastructure projects, disaster response measures, cost of revenue collection and approved spending for certain agencies and the Federal Capital Territory.

He emphasised that all such expenditures are lawful, publicly disclosed and subject to auditing and oversight mechanisms.

Oyedele added that differences in international reporting standards should not be interpreted as proof of unlawful spending.

He also rejected claims that the reported amount automatically increased Nigeria’s fiscal deficit, explaining that deficits are determined by the gap between total revenue and total expenditure.

The minister stated that the IMF’s concerns were mainly about the presentation and timing of Nigeria’s fiscal reports rather than the legality of government spending.

He disclosed that reforms were already underway to improve Nigeria’s fiscal reporting system and align it with international standards.

Oyedele further recalled President Bola Ahmed Tinubu’s appeal during the presentation of the 2026 Appropriation Bill for an end to overlapping budgets and the adoption of a unified budgeting framework.

He said ongoing reforms had strengthened transparency, accountability, treasury operations, revenue management and the digitalisation of public finance processes.

According to him, these reforms have received positive recognition from the IMF, multilateral institutions, investors, credit rating agencies and international media organisations.

While welcoming public engagement on government finances, the minister urged analysts and commentators to rely on accurate facts and a sound understanding of the country’s fiscal structure.

“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability,” Oyedele stated.

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