The federal government denied spending more than N8 trillion beyond the 2026 budget, citing false information and misinterpretation of the International Monetary Fund’s 2026 Article IV Consultation Report.
The government claimed that the claims, based on comments attributed to the IMF representative in Nigeria and the fund’s report, incorrectly stated that approximately 2% of Nigeria’s GDP was spent outside of the approved budget.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, made this announcement on Sunday.
The statement follows the IMF’s disclosure that Nigeria left public spending equivalent to nearly 2% of GDP unreported in recent official budgets, disguising the country’s true financing requirements and making the fiscal deficit appear lower than it was.
Speaking in Lagos, Christian Ebeke, IMF Resident Representative in Nigeria, stated, “So far, we believe that there are about two percent of GDP in unreported expenditures that should be reported and recorded so that this statistical discrepancy disappears.”
Opposition figures, including former Vice President Atiku Abubakar and the National Democratic Party’s presidential nominee, Peter Obi, responded by accusing President Bola Tinubu’s administration of widespread corruption and calling for an investigation.
However, Oyedele stated that the federal government does not operate a “shadow budget” or spend public funds outside of the constitutional and statutory framework.
“The Federal Government has noted recent public commentary alleging that approximately two percent of GDP, amounting to over ₦8 trillion, was spent outside the approved budget based on references to the IMF representative in Nigeria and the fund’s 2026 Article IV Consultation Report.
“These claims are incorrect and risk misleading the public regarding the government’s financial management,” the statement said.
Oyedele noted that under Sections 80–83 and 162 of the 1999 Constitution, public funds could only be taken and spent in line with the Constitution and National Assembly laws.
He stated that federal government spending was done through legally enacted appropriation acts, supplementary appropriation acts, and other legislative powers approved by the National Assembly.
The minister went on to say that multi-year capital projects conducted across several budget cycles, as well as permitted capital rollovers, were recognized components of public financial management and should not be mistaken for spending outside the budget.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” he said.
Oyedele further explained that the Nigerian public financial architecture included statutory transfers, debt service responsibilities, first-line charges, and intervention procedures established by National Assembly Acts.
He cited statutory allocations to development commissions, revenue collection costs retained by designated agencies, separately approved capital budgets for some agencies and the Federal Capital Territory, security and infrastructure interventions, disaster response programs, and debt servicing obligations as examples of legally authorized expenditures.
“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit, and accountability mechanisms,” he stated.
The minister further denied that the reported amount reflected an increase in Nigeria’s budget imbalance.
“A fiscal deficit is determined by the relationship between total government revenues and total government expenditures. Whether a capital project is financed through annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms, or other lawful financing arrangements does not, by itself, increase the fiscal deficit,” he added.
He stated that the IMF’s observations centered on enhancing the comprehensiveness, timing, and presentation of fiscal reports rather than challenging the legality of government spending.
According to him, Tinubu had already petitioned the National Assembly on December 19, 2025, during the presentation of the 2026 Appropriation Bill, to cease the practice of managing multiple and overlapping budgets in favor of a single, harmonized budget framework.
Oyedele stated that the federal government remained committed to prudent fiscal management, openness, and accountability, citing recent reforms that improved budget credibility, revenue administration, treasury management, and the digitization of government financial systems.
“The Federal Government will continue to uphold the rule of law, maintain transparency in the management of public resources, and work with the National Assembly, oversight institutions, development partners, and the Nigerian people to further strengthen fiscal governance in line with international best practices,” he added.
He urged the public to base conversations on factual facts and a thorough understanding of Nigeria’s constitutional and economic framework, warning that distorting technical observations as evidence of illegal spending undermines educated public discourse.
