The Federal Government has dismissed claims that it spent about two per cent
of Nigeria’s Gross Domestic Product (GDP)—estimated at over ₦8
trillion—outside the approved budget, describing the reports as a
misrepresentation of comments made by the International Monetary Fund (IMF)
Resident Representative in Nigeria and the organisation’s 2026 Article IV
Consultation Report.
The government said the claims were inaccurate and could mislead the public
about the country’s fiscal management.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo
Oyedele, said the Federal Government does not operate a “shadow budget” or
spend public funds outside the constitutional and statutory framework
governing public finance.
He explained that sections 80–83 and 162 of the 1999 Constitution (as
amended) provide that public funds can only be withdrawn and spent in
accordance with the Constitution and laws enacted by the National Assembly.
According to him, all Federal Government spending is backed by duly enacted
Appropriation Acts, Supplementary Appropriation Acts or other statutory
authorisations approved by the National Assembly.
Oyedele added that multi-year capital projects, which span several budget
cycles, are implemented in line with existing laws and approved capital rollover
provisions where applicable. “These are recognised features of public financial
management and should not be misconstrued as expenditures outside the
budget,” he said.
He described as inaccurate suggestions that trillions of naira were secretly spent
without legislative approval, arguing that such allegations should identify the
specific projects allegedly executed without appropriation or legal authority and
provide credible evidence to support the claims.
“To be meaningful, assertions of this magnitude must be supported by verifiable
facts rather than conjecture.
“For the purpose of public education, it is important to distinguish between
appropriation, expenditure authorisation, financing and fiscal reporting,” he
added.
Oyedele said Nigeria’s public finance framework includes several statutory
transfers, first-line charges and intervention mechanisms established by Acts of
the National Assembly.
These, he said, include statutory allocations to development commissions and
other agencies created by law, cost of collection and administration retained by
designated revenue-collecting agencies, capital expenditure approved under
separate budgets for some agencies and the Federal Capital Territory, special
interventions for national priorities such as security, infrastructure and disaster
response, as well as debt service obligations and other statutory transfers.
The minister maintained that the expenditures are neither secret nor illegal,
stressing that they are established by law, disclosed in official fiscal reports and
subject to oversight, audit and accountability mechanisms.
“Their treatment for reporting purposes may differ from their presentation in the
annual Appropriation Act, particularly under international statistical and
reporting standards adopted by the Federal Government. Such classification
differences should not be misrepresented as evidence of unlawful expenditure,”
he said.
Oyedele also rejected claims that the reported amount represented an increase in
Nigeria’s budget deficit. “A fiscal deficit is determined by the relationship
between total government revenues and total government expenditures.
Whether a capital project is financed through annual appropriations,
supplementary appropriations, statutory transfers, approved intervention
mechanisms or other lawful financing arrangements does not, by itself, increase
the fiscal deficit,” he said.
He further explained that the IMF’s observation related primarily to the
comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather
than the legality of government expenditure.
According to him, Nigeria, like many other countries, is working to improve the
alignment between its budget presentation and international fiscal reporting
standards as part of ongoing public financial management reforms.
Oyedele recalled that President Bola Tinubu had, during the presentation of the
2026 Appropriation Bill to a joint session of the National Assembly on
December 19, 2025, urged lawmakers to end the practice of operating multiple
and overlapping budgets and instead adopt a single, harmonised budget
framework.
He said the Federal Government remains committed to prudent fiscal
management, transparency and accountability, adding that recent reforms have
strengthened budget credibility, revenue administration, treasury management
and the digitalisation of government financial processes.
According to him, these reforms have been acknowledged by the IMF, other
multilateral institutions, international credit rating agencies, investors and major
global media organisations.
While describing public debate as essential in a democracy, Oyedele urged
commentators to base their arguments on facts and a proper understanding of
Nigeria’s constitutional and fiscal framework. “Mischaracterising technical
observations as evidence of unlawful expenditure neither advances informed
public discourse nor strengthens democratic accountability,” he said.
He added that the Federal Government would continue to uphold the rule of
law, ensure transparency in the management of public resources and work with
the National Assembly, oversight institutions, development partners and
Nigerians to further strengthen fiscal governance in line with international best
practices.
The controversy followed reported comments by the IMF’s Resident
Representative in Nigeria, Christian Ebeke that the country allegedly failed to
record public spending equivalent to about two per cent of its Gross Domestic
Product (GDP) in recent official budgets.
According to the IMF, the omission—linked partly to major government
projects executed outside the formal budget framework—made Nigeria’s fiscal
deficit appear smaller than its actual financing needs and complicated fiscal
transparency.
The international organisation, however, noted that the Federal Government had
begun taking steps to address the issue by revising budget laws and improving
fiscal reporting.
The IMF’s disclosure drew sharp reactions from opposition figures, including
former Vice President Atiku Abubakar and a former Anambra State governor,
Peter Obi.
Atiku urged the Economic and Financial Crimes Commission (EFCC), the
Independent Corrupt Practices and Other Related Offences Commission
(ICPC), the National Assembly and the Auditor-General of the Federation to
investigate what he described as about ₦8.8 trillion in off-budget spending,
alleging that the funds were spent without legislative approval or public
accountability.
Obi also raised concerns over the report, describing it as evidence of “grand
corruption” and arguing that the alleged ₦8.83 trillion expenditure was outside
legislative oversight, and called for greater transparency and accountability in
the management of public finances.