Barbara Bako, Abuja.
The Federal Government has dismissed claims that it spent more than N8 trillion outside the approved budget, describing the allegation as false and a misrepresentation of the International Monetary Fund (IMF)’s 2026 Article IV Consultation Report.
In a statement issued on Saturday, the Federal Ministry of Finance said recent public commentary alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the budget was inaccurate and could mislead the public about the government’s fiscal management.
The ministry stressed that the Federal Government does not operate a “shadow budget” and that all public expenditure is undertaken within the constitutional and legal framework governing public finance.
According to the ministry, Sections 80 to 83 and 162 of the 1999 Constitution (as amended) require that public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
It explained that federal spending is carried out through Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations approved by the legislature, while multi-year capital projects are implemented under existing laws and approved capital rollover provisions where applicable.
The ministry said it was wrong to suggest that trillions of naira had been secretly spent without legislative approval, noting that anyone making such claims should identify the specific projects allegedly executed outside appropriation and provide credible evidence.
It further clarified that statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly including allocations to development commissions, debt service obligations, cost of revenue collection, approved capital expenditure for certain agencies and special interventions for security, infrastructure and disaster response are lawful expenditures subject to oversight and audit.
According to the statement, differences in the way such expenditures are presented in fiscal reports compared with annual appropriation documents reflect reporting classifications under international standards and should not be interpreted as evidence of unlawful spending.
The ministry also rejected suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit, explaining that the deficit is determined by the relationship between total government revenue and expenditure rather than the financing mechanism for individual projects.
It stated that the IMF’s observations related mainly to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of government expenditure.
The ministry noted that the administration was already pursuing reforms to harmonise budget presentation with international fiscal reporting standards.
It recalled that President Bola Tinubu had, while presenting the 2026 Appropriation Bill to the National Assembly on December 19, 2025, called for an end to the practice of multiple and overlapping budgets in favour of a single, cohesive budget framework.
The Federal Government reaffirmed its commitment to prudent fiscal management, transparency and accountability, saying ongoing reforms had strengthened budget credibility, revenue administration, treasury management and the digitalisation of public financial processes.
It added that while public debate was essential in a democracy, discussions on public finance should be based on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.
The ministry maintained that the government would continue to uphold the rule of law, ensure transparency in the management of public resources and work with the National Assembly and other stakeholders to strengthen fiscal governance in line with international best practices.
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