The Federal Government under Bola Ahmed Tinubu has denied claims that it disbursed over ₦8 trillion, estimated at approximately two per cent of Nigeria’s Gross Domestic Product (GDP), beyond the approved national budget.
In a statement issued on Sunday by the Federal Ministry of Finance, the government said the claims were wrong and capable of misleading Nigerians on the management of public finances.
The statement was signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following public comments connected to observations attributed to the International Monetary Fund’s representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
The government maintained it does not operate a “shadow budget” or spend public money outside of constitutional and statutory financial procedures.
“For the avoidance of doubt, the Federal Government does not operate a ‘shadow budget’ nor do we expend public funds outside the constitutional and statutory framework prescribed for public finance,” the statement read.
The government referred to Sections 80 to 83 and 162 of the 1999 Constitution, as amended, which are the sections that deal with the withdrawal and spending of public funds.
It said that Federal Government spending was carried out through Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the National Assembly.
The ministry also noted that multi-year capital projects, which may span several budget cycles, were implemented in accordance with existing laws and approved capital rollover provisions, where applicable.
“These are acknowledged features of public financial management and should not be construed as off-budget spending,” the government said.
It challenged those who alleged that trillions of naira were secretly spent to identify specific projects allegedly executed without appropriation or legal authority.
It is incorrect to claim that trillions of naira have been secretly spent without legislative approval.
“Such allegations should have specified the projects supposedly carried out without appropriation or legal authority and provided credible evidence in support of the claim.
“To have meaning, such monumental assertions must be supported by facts which can be verified and not be speculation,” the ministry said.
When analysing Nigeria’s public finances, the government said it was important to separate appropriation, expenditure authorisation, financing and fiscal reporting.
According to the ministry, the country’s public finance framework consists of statutory transfers, first-line charges and intervention mechanisms provided for by Acts of the National Assembly.
These are statutory allocations and contributions to development commissions and other agencies established by law and the cost of collection and administration retained by designated revenue generating agencies.
The government also listed capital expenditure approved in separate budgets for some agencies and the Federal Capital Territory, special interventions for security, infrastructure and disaster response, debt service obligations and other statutory transfers.
“These expenditures are not secret or illegal. “They are created by law, reported in different fiscal documents, and are subject to relevant oversight, audit and accountability mechanisms,” the ministry said.
It explained that certain expenditures may be classified differently for reporting purposes than they are presented in the annual Appropriation Act, particularly under international statistical and reporting standards adopted by the government.
“The differences in classification should not be misrepresented as evidence of unlawful expenditure,” it added.
The Federal Government also dismissed suggestions that the disputed amount amounted to an increase in the country’s budget deficit.
Fiscal deficit is the ratio of total government revenue to total expenditure, the ministry said.
It argued that the mechanism of financing a capital project did not automatically increase the fiscal deficit.
“The fact that a capital project is financed by means of annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms or other lawful financing arrangements does not, by itself, increase the fiscal deficit,” the government said.
The ministry said the IMF’s observation was on comprehensiveness, timing and presentation of fiscal reports, rather than illegal government expenditure.
Nigeria was working to strengthen the alignment of its budget presentation with international fiscal reporting standards, like several other countries, it added.
The government recalled that President Bola Tinubu had formally asked the National Assembly to stop the practice of running multiple and overlapping budgets.
The ministry said Tinubu made the request during the presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025.
The President pushed for one cohesive budget framework, it said.
The Federal Government re-affirmed its commitment to prudent fiscal management, transparency and accountability.
It stated that recent reforms had improved public financial management through better budget assumptions, revenue administration, digitalisation of financial processes and treasury management.
The ministry said the reforms had been acknowledged by the IMF, other multilateral institutions, international credit rating agencies, media organisations and investors.
“Public debate in a democratic society is both welcome and essential. But it must be based on facts and an accurate understanding of Nigeria’s constitutional and fiscal framework,” the statement added.
“Misrepresenting technical observations as proof of unlawful expenditure does not help to inform public debate or to improve democratic accountability.”
