By Faith Anisiobi, The Sight News
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 national budget, describing the allegations as false and misleading.
In a statement issued on Saturday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the government does not operate a “shadow budget” or spend public funds outside the constitutional and legal framework governing public finance.
The clarification follows public commentary referencing the International Monetary Fund (IMF)’s 2026 Article IV Consultation Report, which some interpreted as evidence of unapproved government expenditure.
According to the minister, all federal spending is carried out in line with Sections 80–83 and 162 of the 1999 Constitution (as amended), through duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorizations approved by the National Assembly.
Oyedele explained that multi-year capital projects often extend across several budget cycles and are implemented under existing laws, including approved capital rollovers where necessary. He stressed that such expenditures should not be mistaken for spending outside the budget.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the statement said, adding that claims of unlawful expenditure must be backed by verifiable evidence rather than speculation.
The minister further clarified that Nigeria’s public finance framework includes several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly. These include statutory allocations to development commissions, cost of revenue collection by designated agencies, debt servicing, capital expenditure approved under separate budgets, and emergency interventions for national priorities such as security, infrastructure and disaster response.
He noted that while these expenditures may be presented differently under international fiscal reporting standards, they remain lawful, publicly disclosed and subject to oversight and audit.
The statement also rejected suggestions that the reported amount reflected an increase in Nigeria’s fiscal deficit, explaining that the deficit is determined by the relationship between total government revenue and expenditure, not by the financing structure of approved projects.
According to the minister, the IMF’s observations relate mainly to the comprehensiveness and presentation of fiscal reporting rather than the legality of government spending.
He recalled that President Bola Ahmed Tinubu had already called for an end to the practice of running multiple and overlapping budgets during the presentation of the 2026 Appropriation Bill to the National Assembly in December 2025, advocating instead for a harmonized budget framework.
The Federal Government reiterated its commitment to prudent fiscal management, transparency and accountability, noting that recent reforms in revenue administration, treasury management and digitalization of government financial processes have been recognized by the IMF, international credit rating agencies and other development partners.
While welcoming public debate on government finances, the ministry urged commentators to ensure discussions are based on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.
The government reaffirmed its commitment to working with the National Assembly, oversight institutions, development partners and Nigerians to strengthen fiscal governance in line with international best practices.
