Nigeria budget spending has come under renewed public scrutiny after the Federal Government dismissed allegations that it spent more than ₦8 trillion outside the approved budget, describing the claims as a misrepresentation of the 2026 Article IV Consultation Report by the International Monetary Fund (IMF).
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said reports suggesting that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the country’s budgetary framework were inaccurate and capable of misleading the public. He maintained that the Federal Government operates strictly within the constitutional and legal framework governing public finance.
Addressing the controversy over Nigeria budget spending, Oyedele said the Federal Government does not maintain a “shadow budget” or spend public funds outside approved legal processes. According to him, Sections 80 to 83 and Section 162 of the 1999 Constitution (as amended) clearly provide that public funds can only be withdrawn and expended in accordance with the Constitution and laws enacted by the National Assembly.
“The Federal Government does not operate a shadow budget or expend public funds outside the constitutional and statutory framework established for public finance,” the minister stated.
He explained that government expenditure is implemented through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations passed by the National Assembly.
Oyedele also clarified that multi-year capital projects, which extend across several budget cycles, are executed under existing legal provisions that permit capital rollovers and should not be interpreted as off-budget spending.
He described allegations that trillions of naira were secretly spent without legislative approval as unsupported, noting that no evidence had been presented identifying any project executed without appropriation. The minister further explained that Nigeria’s fiscal framework includes statutory transfers, first-line charges and 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, separately approved capital projects for certain government institutions and the Federal Capital Territory, special interventions covering national priorities such as security, infrastructure and disaster response, as well as debt service obligations.
According to him, these expenditures are lawful, publicly disclosed and subject to legislative oversight and audit, even though their presentation under international reporting standards may differ. Oyedele also rejected suggestions that the reported figure reflected an increase in Nigeria’s fiscal deficit, explaining that fiscal deficits are determined by the relationship between total government revenue and expenditure rather than by the financing structure of approved projects.
He stated that the IMF’s observations focused primarily on improving the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government expenditure.
The Nigeria budget spending clarification comes as the Federal Government continues implementing reforms aimed at aligning fiscal reporting with international standards. Oyedele recalled that President Bola Tinubu, while presenting the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, urged lawmakers to harmonise multiple budget structures into a single, integrated fiscal framework.
The minister said ongoing reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of public financial systems. He added that these reforms have received positive recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
The Federal Government reaffirmed its commitment to transparency, accountability and prudent fiscal management, while encouraging informed public debate based on accurate interpretation of fiscal reports and Nigeria’s constitutional framework.
Oyedele maintained that technical observations contained in international reports should not be misconstrued as evidence of unlawful government spending, warning that inaccurate interpretations could undermine public understanding of the country’s fiscal management system.
