- FG denied spending ₦8tn outside the 2026 budget
- It said the IMF report was widely misunderstood
- The government reaffirmed its commitment to transparency and accountability
The Federal Government has denied allegations that it spent more than ₦8 trillion outside the 2026 national budget, insisting that the claim stems from a misunderstanding of the International Monetary Fund’s 2026 Article IV Consultation Report.
In a statement issued on Sunday, Eko Hot Blog reports that the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the reports as inaccurate and misleading, stressing that the Federal Government does not operate any form of unofficial or “shadow” budget.
The clarification followed public reactions to comments by the IMF’s Resident Representative in Nigeria, Christian Ebeke, who said government expenditure equivalent to about two per cent of Nigeria’s Gross Domestic Product had not been fully reflected in official fiscal reports.
According to the IMF, the omission affected the presentation of Nigeria’s fiscal position, making the budget deficit appear lower than it actually was. The Fund recommended that such expenditures be properly recorded to improve transparency and eliminate statistical discrepancies.
The IMF’s comments sparked criticism from opposition figures, including former Vice President Atiku Abubakar and the National Democratic Party’s presidential candidate, Peter Obi, who accused the Tinubu administration of poor financial management and called for an investigation.
Responding to the allegations, Oyedele said every expenditure by the Federal Government is carried out strictly within the provisions of the 1999 Constitution and relevant laws passed by the National Assembly.
He explained that government spending is authorised through Appropriation Acts, Supplementary Appropriation Acts and other statutory approvals, adding that no public funds are spent without legal backing.
The minister noted that capital projects extending across several budget cycles, as well as approved capital rollovers, are standard public finance practices and should not be interpreted as off budget spending.
He challenged those making the allegations to identify any specific project that was executed without legislative approval or legal authority, saying no evidence had been presented to support such claims.
Oyedele also explained that statutory transfers, debt servicing, first line charges and other intervention funds established by Acts of the National Assembly are legitimate components of Nigeria’s fiscal framework.
He listed allocations to development commissions, revenue collection costs retained by designated agencies, separately approved capital budgets for certain agencies and the Federal Capital Territory, security interventions, infrastructure projects, disaster response programmes and debt obligations as expenditures authorised under existing laws.
According to him, these payments are publicly disclosed, subject to audits and oversight, and cannot be classified as secret or unlawful spending.
The minister further dismissed suggestions that the reported expenditure automatically increased Nigeria’s fiscal deficit, explaining that a country’s deficit is determined by the balance between total government revenue and total expenditure, regardless of the financing mechanism used for approved projects.
He said the IMF’s recommendations were aimed at improving the completeness and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government spending.
Oyedele added that President Bola Tinubu had already proposed reforms to simplify Nigeria’s budgeting process by replacing multiple overlapping budgets with a single harmonised framework during the presentation of the 2026 Appropriation Bill to the National Assembly.
He reaffirmed the administration’s commitment to transparency, prudent fiscal management and accountability, noting that recent reforms have strengthened revenue administration, treasury operations, budget credibility and the digitalisation of public financial management.
The minister urged Nigerians to rely on verified facts when discussing public finance issues, warning that misrepresenting technical observations from international institutions could create unnecessary confusion and undermine informed public debate.
