By our Reporter
The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the approved national budget, describing the reports as false and a misrepresentation of observations contained in the 2026 Article IV Consultation Report of the International Monetary Fund.
In a statement, the government said recent public commentary alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, was expended outside the budget was inaccurate and capable of misleading Nigerians about the country’s public financial management.
The government maintained that it does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework governing public finance.
According to the statement, all federal government expenditures are made in line with Sections 80 to 83 and 162 of the Constitution and are authorised through Appropriation Acts, Supplementary Appropriation Acts and other laws duly passed by the National Assembly.
It explained that some capital projects span several fiscal years and are implemented through approved capital rollovers, stressing that such arrangements are recognised under Nigeria’s public finance laws and should not be misconstrued as expenditures outside the budget.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the statement said, adding that allegations of unlawful expenditure should be supported with verifiable evidence, including specific projects allegedly executed without appropriation.
The government further clarified that Nigeria’s public finance system includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.
These include statutory allocations to development commissions and government agencies, debt service obligations, approved interventions for national security, infrastructure and disaster response, as well as legally authorised costs of revenue collection and administration.
According to the government, these expenditures are neither secret nor illegal, noting that they are disclosed in fiscal reports and remain subject to legislative oversight, audit and accountability mechanisms.
It also rejected claims that the reported amount represented an increase in the country’s fiscal deficit, explaining that a fiscal deficit is determined by the relationship between total government revenue and expenditure rather than the financing arrangement for approved projects.
The government stated that the IMF’s observations related mainly to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of public spending.
It noted that Nigeria is already implementing reforms to align its budget presentation with international fiscal reporting standards.
The statement recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill to the National Assembly on December 19, 2025, called for an end to the practice of operating multiple and overlapping budgets in favour of a single, harmonised budget framework.
Reaffirming its commitment to transparency and prudent fiscal management, the Federal Government said recent reforms had strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
It added that these reforms have been acknowledged by the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
The government urged Nigerians to base public debate on verified facts and a proper understanding of the country’s constitutional and fiscal framework, warning that misrepresenting technical observations as evidence of illegal expenditure does not promote informed public discourse or democratic accountability.
