The Federal Ministry of Finance has dismissed claims that the Federal Government spent more than N8 trillion outside the approved budget, describing the allegations as a misrepresentation of the International Monetary Fund’s 2026 Article IV Consultation Report.
In a statement issued on Saturday, the ministry said public commentary suggesting that approximately two per cent of Nigeria’s Gross Domestic Product was spent outside the budgetary framework was inaccurate and misleading.
“The Federal Government has noted recent public commentary alleging that approximately two percent of GDP amounting to over ₦8 trillion was spent outside the approved budget based on references to the IMF Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report. These claims are incorrect and risk misleading the public regarding the government’s financial management.”
The ministry insisted that the Federal Government does not operate any unofficial spending programme outside constitutional provisions.
“For the avoidance of doubt, the Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance.”
According to the statement, all public spending is undertaken in line with the provisions of the Constitution, Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the National Assembly.
The ministry explained that multi year capital projects often span several budget cycles and may involve approved capital rollovers, stressing that such arrangements are standard features of public financial management and should not be interpreted as spending outside legislative approval.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval.”
The government challenged those making the allegations to identify projects allegedly executed without appropriation or legal authority and provide evidence to support the claims.
“To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture.”
The ministry further clarified that Nigeria’s fiscal framework accommodates statutory transfers, first line charges, intervention mechanisms, debt service obligations and expenditure programmes established under existing laws.
It stated that these expenditures are lawful, publicly disclosed and subject to oversight and audit procedures.
“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.”
The statement added that differences in how such expenditures are presented in fiscal reports and annual budgets should not be interpreted as evidence of unlawful spending.
The ministry also rejected claims that the reported amount represented an increase in the country’s fiscal deficit, explaining that deficits are determined by the relationship between government revenue and expenditure rather than the financing method used for projects.
According to the ministry, the IMF’s concerns centred on “the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure.”
It added that President Bola Tinubu had already called for the harmonisation of multiple and overlapping budgets into a single framework during the presentation of the 2026 Appropriation Bill to the National Assembly in December 2025.
The ministry maintained that ongoing reforms in revenue administration, treasury management and the digitalisation of government financial processes had strengthened transparency and accountability in public finance management.
It added that while public debate was important in a democratic society, discussions on fiscal matters should be grounded in facts and a proper understanding of Nigeria’s constitutional and financial framework.
“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability.”
Faridah Abdulkadiri
