Finance
THE Federal Government has dismissed allegations that more than ₦8 trillion was spent outside the approved budget, describing the claims as false, misleading and a misrepresentation of observations contained in the International Monetary Fund (IMF) 2026 Article IV Consultation Report.
In a statement issued on Sunday, the Federal Ministry of Finance said the Federal Government did not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework governing public finance in Nigeria.
The ministry explained that claims circulating in the public space, which suggested that about two per cent of the country’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, had been spent outside the budget, were based on an incorrect interpretation of comments attributed to the IMF Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
According to the ministry, such claims risk misleading Nigerians about the government’s fiscal operations and financial management.
It stressed that under Sections 80 to 83 and 162 of the 1999 Constitution (as amended), public funds could only be withdrawn and expended in accordance with the Constitution and laws enacted by the National Assembly.
The ministry said every expenditure of the Federal Government was undertaken pursuant to duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the National Assembly.
It added that multi-year capital projects, which often span more than one fiscal year, were implemented in line with existing laws and approved provisions allowing capital rollovers where necessary.
According to the ministry, such arrangements are standard public financial management practices and should not be interpreted as expenditures outside the budget.
“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 provide credible evidence in support of such claims,” the statement said.
The ministry maintained that allegations of such magnitude must be backed by verifiable facts rather than speculation.
It further clarified that there was a clear distinction between appropriation, expenditure authorisation, financing and fiscal reporting under Nigeria’s public finance framework.
The ministry explained that several categories of government spending were established by Acts of the National Assembly and, therefore, lawfully executed outside the conventional presentation of annual Appropriation Acts.
It listed such expenditures to include statutory allocations and contributions to development commissions and other agencies established by law, cost of collection and administration retained by designated revenue-generating agencies, capital expenditure separately approved for certain agencies and the Federal Capital Territory, special interventions for security, infrastructure, disaster response and other national priorities, as well as debt service obligations and other statutory transfers.
The ministry noted that these expenditures were neither secret nor unlawful, stressing that they were provided for by legislation, disclosed in fiscal reports and subjected to oversight, audit and accountability mechanisms.
It explained that although the presentation of such expenditures might differ under international fiscal reporting standards adopted by the government, such classification differences should not be interpreted as evidence of illegal spending.
The ministry also rejected suggestions that the amount referenced represented an increase in Nigeria’s fiscal deficit.
It explained that a fiscal deficit was determined by the relationship between total government revenues and expenditures and not merely by the financing mechanism adopted for particular projects.
According to the ministry, capital projects financed through annual appropriations, supplementary budgets, statutory transfers or other lawful financing arrangements do not automatically increase the fiscal deficit.
It stated that the IMF’s observations related mainly to issues of comprehensiveness, timing and presentation of fiscal reporting rather than allegations of unlawful expenditure.
The ministry reiterated the Federal Government’s commitment to transparency, fiscal discipline and compliance with constitutional and statutory provisions governing public finance, while urging members of the public to rely on verified information in discussing issues relating to government finances.
F.O
Tags: ministry of finance Misinterpretation of IMF comments Shadowy Budget