The Federal Government has strongly denied allegations that it spent more than ₦8 trillion outside the 2026 budget, insisting that recent reports misinterpreted the International Monetary Fund’s (IMF) findings and created a false impression of illegal government spending.
The controversy followed comments by the IMF’s Resident Representative in Nigeria, Christian Ebeke, who disclosed that government expenditure equivalent to about two per cent of Nigeria’s Gross Domestic Product (GDP) had not been fully captured in official fiscal reports, making the country’s deficit appear smaller than its actual financing requirement.
Speaking in Lagos, Ebeke said: “So far we think that there are about two per cent of GDP of expenditure that were not reported that should be reported and should be recorded, so that this statistical discrepancy will disappear.”
The disclosure sparked criticism from opposition leaders, including former Vice-President Atiku Abubakar and National Democratic Congress (NDC) presidential candidate Peter Obi, who called for an investigation into the alleged unreported expenditure.
Responding on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, dismissed claims that the Federal Government operated a “shadow budget”, maintaining that every government expenditure is backed by law and legislative approval.
“The Federal Government has noted recent public commentary alleging that approximately two per cent 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 statement read.
Oyedele explained that under Sections 80 to 83 and 162 of the 1999 Constitution, public funds can only be withdrawn and spent in accordance with laws passed by the National Assembly. He added that federal expenditure is executed through Appropriation Acts, Supplementary Appropriation Acts and other statutory approvals, while multi-year projects and approved capital rollovers are recognised components of public financial management.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” he said.
The minister also clarified that statutory transfers, debt servicing obligations, first-line charges, security interventions, development commission allocations, disaster response programmes and other expenditures authorised by Acts of the National Assembly are lawful components of Nigeria’s fiscal framework.
“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 stated.
Addressing concerns over the country’s fiscal deficit, Oyedele said the IMF’s observations were aimed at improving the completeness and presentation of Nigeria’s fiscal reporting, not questioning the legality of government spending.
“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 added.
He noted that President Bola Tinubu had already proposed a single, harmonised budget framework during the presentation of the 2026 Appropriation Bill to eliminate multiple and overlapping budgets and strengthen fiscal transparency.
The minister reiterated that the administration remains committed to prudent fiscal management, accountability and transparency, stressing that the IMF report should not be interpreted as evidence of unlawful spending but as a recommendation to improve the reporting of public finances in line with international standards.
