The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the approved budget, insisting that all public expenditure is authorised under the Constitution and laws passed by the National Assembly.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said recent public commentary alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, was spent outside the budget misrepresented references made to the International Monetary Fund (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.
“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,” Oyedele said.
The minister explained that under Sections 80 to 83 and 162 of the 1999 Constitution, as amended, public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
He said Federal government expenditure is incurred through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by lawmakers, adding that multi-year capital projects spanning several budget cycles are implemented under existing laws and approved capital rollover provisions.
“These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget,” Oyedele said.
The minister also rejected allegations that trillions of naira had been secretly spent without legislative approval, saying such claims should be supported with evidence.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” he said.
“Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim. To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture.”
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The minister further clarified that several categories of government spending, including statutory transfers, first-line charges, debt service obligations, capital expenditure approved under separate budgets, and special interventions for security, infrastructure and emergencies, are established by law and subject to oversight.
According to him, “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.”
He explained that while the presentation of such expenditures in fiscal reports may differ from their treatment in the annual Appropriation Act because of international reporting standards, “such classification differences should not be misrepresented as evidence of unlawful expenditure.”
Oyedele also dismissed suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit.
“It is equally incorrect to suggest that the reported amount represents an increase in budget deficit,” he said, explaining that the fiscal deficit is determined by the relationship between total government revenue and expenditure rather than the financing method for approved projects.
The minister maintained that the IMF’s observations related mainly to “the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure.”
He noted that Nigeria was continuing reforms to better align budget presentation with international fiscal reporting standards.
According to him, President Bola Tinubu had already requested the National Assembly during the presentation of the 2026 Appropriation Bill on December 19, 2025, to discontinue the practice of operating multiple and overlapping budgets in favour of “a single, cohesive framework.”
Reaffirming the government’s commitment to fiscal discipline, Oyedele said recent reforms had strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
“The Federal Government remains firmly committed to prudent fiscal management, transparency and accountability,” he said.
He added that while public debate is welcome in a democratic society, “it should be based on facts and an accurate understanding of Nigeria’s constitutional and fiscal framework.”
According to the minister, “Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability.”
Oyedele said the Federal Government would continue to uphold the rule of law, maintain transparency in the management of public resources and work with the National Assembly, oversight institutions and development partners to strengthen fiscal governance in line with international best practices.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X