The Federal Government has denied the allegation that it spent more than ₦8 trillion outside the 2026 budget, asking those who believe this to show evidence.
This follows comments by IMF Resident Representative in Nigeria, Christian Ebeke, who said about two per cent of Nigeria’s GDP was spent outside the budget in 2025, making the country’s fiscal deficit appear smaller than its actual borrowing requirements.
The IMF official said the discrepancy suggested that the government’s financing needs were higher than reflected in official budget figures.
The comment had stirred reactions from opposition leaders, civil society groups and critics of the Tinubu administration.
Former Vice President Atiku Abubakar had called on the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the off-budget spending allegation.
Peter Obi, Presidential Candidate of Nigeria Democratic Congress (NDC), demanded the resignation of the President.
But in a statement issued on Sunday, the Federal Ministry of Finance said reports suggesting that about two per cent of Nigeria’s Gross Domestic Product was spent through a “shadow budget” lacked evidence.
The statement personally signed by Taiwo Oyedele, Minister of Finance, said the comments of the International Monetary Fund (IMF) official was misrepresented.
Oyedele emphasised that the Federal Government does not operate any unofficial budget, arguing that all withdrawals and spending of public funds were authorised through Appropriation Acts, Supplementary Appropriation Acts and other laws passed by the National Assembly.
He clarified some capital projects extend across multiple budget cycles and are implemented through approved rollover provisions, adding that such expenditures should not be interpreted as spending outside the budget.
“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.”
“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. In addition, 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 are recognised features of public financial management and should not be misconstrued as expenditures 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. 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.”
Oyedele said the Federal Government remained firmly committed to prudent fiscal management, transparency and accountability.
He added that recent reforms have significantly strengthened public financial management with ongoing improvements in budget assumptions and credibility, transparent revenue administration, digitalisation of government financial processes, and stronger treasury management.
“These reforms have been acknowledged by the IMF itself and other multilateral institutions, as well as international credit rating agencies, major media organisations and investors.”
“Public debate is both welcome and essential in a democratic society. However, it should be based on facts and an accurate understanding of Nigeria’s constitutional and fiscal framework. Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability,” he said.
