FG denies IMF-based claim of ₦8tn off-budget spending

The Federal Government has dismissed claims that more than ₦8 trillion was spent outside the 2025 Appropriation Act, insisting that all public expenditures were made within Nigeria’s constitutional and legal framework.

 

In a statement issued on Sunday, Minister of Finance Taiwo Oyedele said reports alleging that government spending equivalent to about two per cent of Nigeria’s Gross Domestic Product (GDP)—estimated at over ₦8 trillion—was outside the approved budget misrepresented the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.

 

The ministry maintained that the Federal Government does not operate a “shadow budget” or spend public funds without legislative approval.

 

It explained that under Sections 80 to 83 and 162 of the 1999 Constitution, public funds can only be withdrawn and spent in accordance with constitutional provisions and laws enacted by the National Assembly.

 

According to the ministry, government expenditure is executed through duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorisations.

 

It added that multi-year capital projects are implemented under existing laws and approved capital rollovers where applicable, stressing that such projects should not be interpreted as off-budget spending.

 

The ministry also challenged those making allegations of secret spending to provide evidence.

 

“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should identify the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” Oyedele said.

 

The government further explained that Nigeria’s public finance framework includes statutory transfers, first-line charges and other intervention mechanisms established by Acts of the National Assembly.

 

These include statutory allocations to development commissions and agencies, revenue collection costs retained by designated agencies, separate capital budgets for certain agencies and the Federal Capital Territory, special interventions for national priorities such as security and infrastructure, as well as debt servicing obligations.

 

According to the ministry, these expenditures are lawful, publicly disclosed and subject to oversight, audit and accountability, although their presentation in fiscal reports may differ from their appearance in the annual Appropriation Act because of international reporting standards.

 

The government also rejected suggestions that the reported ₦8 trillion represented an increase in Nigeria’s fiscal deficit, noting that fiscal deficits are determined by the relationship between government revenue and expenditure rather than the financing mechanism used for approved projects.

 

It said the IMF’s observations focused primarily on the comprehensiveness, timing and presentation of fiscal reporting, rather than the legality of government spending.

 

The ministry noted that President Bola Tinubu had already asked the National Assembly to harmonise multiple and overlapping budgets into a single framework while presenting the 2026 Appropriation Bill on December 19, 2025.

 

It added that the administration remains committed to fiscal discipline, transparency and accountability through reforms in budget credibility, revenue administration, digitalisation of government financial processes and treasury management.

 

The ministry urged Nigerians to base public debate on verified facts and an accurate understanding of the country’s fiscal framework, warning against interpreting technical observations in the IMF report as evidence of unlawful expenditure.