The Federal Government has denied claims that it spent over ₦8 trillion outside the approved budget. They insist they do not run a "shadow budget" and that all public spending follows the Constitution and relevant laws.
In a statement released on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, called recent comments suggesting that about two percent of Nigeria’s Gross Domestic Product (GDP) was spent without legislative approval inaccurate and misleading.
The minister said these claims, which seem to come from the International Monetary Fund (IMF) and its 2026 Article IV Consultation Report, create a wrong impression about how the Federal Government manages its finances.
"For clarity, the Federal Government does not operate a 'shadow budget' or spend public funds outside the constitutional and legal framework set for public finance," Mr Oyedele stated.
He explained that under Sections 80 to 83 and 162 of the 1999 Constitution, as amended, public funds can only be withdrawn and spent according to constitutional provisions and laws made by the National Assembly.
According to him, federal spending happens through properly enacted Appropriation Acts, Supplementary Appropriation Acts, and other legal authorizations approved by lawmakers.
The minister also highlighted that multi-year capital projects, which can go beyond a single fiscal year, are carried out under existing laws, including approved capital rollovers when necessary.
He argued that these arrangements are normal parts of public financial management and should not be seen as spending outside the budget.
Mr Oyedele challenged anyone making these allegations to provide evidence of specific projects supposedly done without approval or legal authorization.
"Such claims should have identified the specific projects alleged to have been executed without appropriations or legal authority and present credible proof to back the claims," he said.
The minister went on to explain that Nigeria’s financial system includes various statutory transfers, first-line charges, and intervention mechanisms set by Acts of the National Assembly.
These include statutory allocations to development commissions and agencies created by law, cost-of-collection provisions for revenue-generating agencies, capital expenditures approved through separate budgets, special interventions for national priorities, and debt service obligations among others.
He emphasized that these expenditures are legal, publicly disclosed, and subject to oversight, audit, and accountability mechanisms.
According to Mr Oyedele, differences in how these expenditures show up in fiscal documents compared to annual appropriation laws often come from international reporting standards and should not be seen as proof of illegal spending.
The minister also dismissed claims that the reported amount indicated an increase in Nigeria’s fiscal deficit.
He explained that fiscal deficits depend on the balance between total government revenues and expenditures. He added that the financing source for approved projects does not automatically raise the deficit.
Mr Oyedele said that the IMF’s comments mainly focused on how to improve the thoroughness, timing, and presentation of fiscal reporting. They were not questioning the legality of government spending.
He reminded everyone that President Bola Tinubu, during the presentation of the 2026 Appropriation Bill to the National Assembly in December 2025, suggested merging multiple and overlapping budgets into one clear framework.
The minister reaffirmed the Federal Government’s commitment to being transparent, accountable, and managing finances wisely. He noted that ongoing reforms have boosted budget credibility, revenue management, treasury management, and the digitalization of government financial processes.
While he welcomed public scrutiny of government finances, Mr Oyedele urged commentators to base their discussions on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.
"The Federal Government will keep upholding the rule of law, maintaining transparency in managing public resources, and working with the National Assembly, oversight bodies, development partners, and the Nigerian people to strengthen fiscal governance in line with international best practices," he said.
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