The Federal Government has debunked alleged spending of N8 trillion outside the approved 2026 budget.
This is coming under the heels of an allegation by the International Monetary Fund (IMF) resident representative in Nigeria, Christian Ebeke, who claimed that two percent of Nigeria’s Gross Domestic Product (GDP) amounting to over N8 trillion was spent outside the approved budget.
Reacting in a statement issued on Sunday, the Minister of Finance, Taiwo Oyedele, debunked the claim, labelling it as incorrect and misleading.
Oyedele maintained that the federal government does not expend public funds outside the constitutional and statutory framework.
“These claims are incorrect and risk misleading the public regarding the government’s financial management.
“For the avoidance of doubt, the Federal Government does not operate a “shadow budget” or expend public funds outside the constitutional and statutory framework established for public finance.
“Under Sections 80 – 83 and 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), public funds may only be withdrawn and expended in accordance with the Constitution and laws enacted by the National Assembly.
“Accordingly, Federal Government expenditure is incurred pursuant to duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities enacted by the National Assembly.” He said.
The minister further claimed that multi-year capital projects which necessarily span multiple budgets are implemented in accordance with extant laws and approved provisions for capital rollovers where applicable.
These, according to him, are recognised features of public financial management and should not be misconstrued as expenditures outside the budget.
While reiterating that the alleged N8 trillion expenditure is inaccurate, Oyedele clarified the difference between appropriation, expenditure authorisation, financing, and fiscal reporting.
“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.
“To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture. For the purpose of public education, it is important to distinguish between appropriation, expenditure authorisation, financing, and fiscal reporting.
“Nigeria’s public finance framework contains several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.
“These include, among others: – Statutory allocations and contributions to development commissions and other agencies created by law.
“Cost of collection and cost of administration retained by designated revenue-collecting agencies as expressly provided under relevant legislation.
“Capital expenditure approved in separate budgets for some agencies and the Federal Capital Territory by the National Assembly.
“Special interventions approved by law to address national priorities such as security, infrastructure, disaster response, and other strategic national programmes or emergencies.
“Debt service obligations and other statutory transfers that are authorised under applicable legislation.” He said.
The minister maintained that the expenditures are not secretly done and should not be misrepresented as evidence of unlawful expenditure which result to increase in budget deficit.
“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.
“Their treatment for reporting purposes may differ from their presentation in the annual Appropriation Act, particularly under international statistical and reporting standards adopted by the Federal Government.
“Such classification differences should not be misrepresented as evidence of unlawful expenditure. It is equally incorrect to suggest that the reported amount represents an increase in budget deficit.
“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 said.
While acknowledging IMF’s observation, Oyedele disclosed efforts of President Bola Tinubu in eradicating the practice of multiple and overlapping budgets.
“Indeed, the IMF’s observation relates primarily to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure.
“Like many countries, Nigeria continues to strengthen the alignment between budget presentation and international fiscal reporting standards as part of ongoing public financial management reforms.
“As a matter of fact, His Excellency, President Bola Ahmed Tinubu, GCFR had himself formally requested the National Assembly to end the practice of running multiple and overlapping budgets, and rather harmonise into a single, cohesive framework during his presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025.” He said.