ABUJA, Nigeria — The Federal Government has dismissed claims that over ₦8 trillion was spent outside the approved budget, describing the allegation as misleading and inconsistent with Nigeria’s constitutional framework for public finance.
In a statement issued by the Federal Ministry of Finance, the government said it does not operate a “shadow budget” and that all public expenditures are carried out strictly under laws approved by the National Assembly.
“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 read.
The clarification follows public commentary referencing the International Monetary Fund (IMF) 2026 Article IV Consultation Report, which suggested that about two percent of Nigeria’s GDP may have been spent outside formal budget structures.
However, the government explained that such interpretations misunderstand the nature of public financial management, noting that all expenditures are authorised through Appropriation Acts, Supplementary Appropriations, and other statutory provisions.
It added that multi-year capital projects, statutory transfers, debt servicing, and legally approved intervention programmes are often recorded differently in fiscal reports, but remain lawful and transparent.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the statement said, challenging critics to provide verifiable evidence for such claims.
The Ministry further clarified that these expenditures do not automatically increase the fiscal deficit, as deficit calculations depend on the balance between total revenue and total spending, regardless of financing structure.
According to the statement, the IMF’s observations relate more to issues of fiscal reporting, timing, and presentation rather than any illegality in government spending.
The government also highlighted ongoing reforms aimed at strengthening transparency, including improved budget credibility, digitalisation of financial processes, and enhanced treasury management systems.
It noted that President Bola Ahmed Tinubu had previously called for the harmonisation of multiple budget structures into a single framework to improve clarity and efficiency in public financial reporting.
Reaffirming its commitment to accountability, the Federal Government said all expenditures are subject to oversight, audit mechanisms, and legislative scrutiny.
It urged stakeholders and the public to base discussions on verifiable facts, warning that misrepresentation of fiscal data could undermine informed public discourse and democratic accountability.
