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The Federal Government has denied allegations that it spent more than ₦8 trillion outside the 2026 Appropriation Act, and asserted that the claims stem from a misinterpretation of the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report and do not reflect the country’s actual public finance practices.
The clarification was contained in a statement issued on Sunday by the Minister of Finance and Coordinating Minister for the Economy, Taiwo Oyedele, following widespread reaction to comments attributed to the IMF regarding Nigeria’s fiscal reporting.
The controversy arose after the IMF stated that government spending equivalent to about two percent of Nigeria’s Gross Domestic Product was not reflected in the recent official budget, thereby creating what it described as a statistical gap that underestimated the country’s financing needs.
Speaking in Lagos, the IMF Representative in Nigeria, Christian Ebeke, said: “So far we think that there is about two percent of unreported GDP expenditure that should be reported and recorded, so that this statistical gap will disappear.”
The statement sparked criticism from opposition leaders, including former Vice President Atiku Abubakar and National Democratic Party presidential candidate, Peter Obi, who accused Tinubu’s administration of financial mismanagement and called for an investigation into the matter.
Responding to the allegations, Oyedele stated that the Federal Government had never run what he called a “shadow budget” and that all public expenditure was carried out strictly in accordance with Nigeria’s constitutional and legal framework.
“The Federal Government has noted recent public comments alleging that about two per cent of GDP worth over ₦8 trillion is being spent outside the approved budget based on reference to the IMF Representation in Nigeria and the 2026 IMF Article IV Consultation Report.
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“These claims are untrue and risk misleading the public regarding the government’s financial management,” the statement said.
The Minister explained that Articles 80 to 83 and 162 of the 1999 Constitution clearly regulate the withdrawal and expenditure of public funds, requiring government expenditure to be supported by constitutional provisions and laws passed by the National Assembly.
According to him, federal spending is implemented through approved Appropriation Acts, Supplemental Appropriation Acts, and other statutory authorizations approved by the legislature.
He added that projects spanning multiple fiscal years, as well as approved capital transfers from previous budgets, are recognized features of public financial management and should not be misconstrued as unauthorized spending.
“It is not appropriate to claim that trillions of naira have been secretly spent outside legislative approval. Such allegations should identify specific projects purportedly implemented without legal allocation or authority and provide credible evidence to support such claims,” he said.
Oyedele further explained that Nigeria’s fiscal framework accommodates several categories of expenditure prescribed by law, including statutory transfers, debt service obligations, first-line costs, and intervention funds established through an Act of the National Assembly.
He cited allocations to development commissions, revenue collection costs retained by designated bodies, separately approved capital budgets for certain government agencies and the Federal Capital Territory, security and infrastructure interventions, disaster response programs and debt repayment commitments as examples of legally recognized expenditures in the country’s public finance system.
“These expenditures are not secret or illegal. These expenditures are determined by law, disclosed in various fiscal reports, and subject to applicable monitoring, audit and accountability mechanisms,” he said.
The Minister of Finance also rejected the notion that the reported figures automatically meant a higher fiscal deficit, and explained that the existence of various legitimate funding mechanisms did not change the basis for calculating the deficit.
“The fiscal deficit is determined by the relationship between total government revenues and total government expenditure. Whether a capital project is financed through annual appropriations, additional appropriations, statutory transfers, approved intervention mechanisms, or other legitimate financing arrangements, does not in itself increase the fiscal deficit,” he added.
According to Oyedele, the IMF observations were primarily aimed at improving the completeness and presentation of Nigeria’s fiscal reporting rather than alleging unlawful spending or financial wrongdoing by the government.
He noted that President Bola Tinubu had proposed reforms to address the reporting issue when presenting the 2026 Fund Allocation Bill to the National Assembly on December 19, 2025, including the implementation of a unified budget framework to eliminate multiple and overlapping budgets.
The minister reaffirmed the government’s commitment to fiscal discipline, transparency and accountability, adding that recent reforms had strengthened the credibility of the budget, revenue administration, treasury management and digitization of the government’s financial processes.
“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, regulatory agencies, development partners and the Nigerian people to further strengthen fiscal governance in line with international best practices,” he added.
He also urged Nigerians to approach discussions on public finances with accurate information and a proper understanding of the country’s constitutional and fiscal framework, and warned that presenting technical observations as evidence of unlawful spending could misinform the public and undermine constructive policy debate.
