The Nigerian government on Sunday rejected claims that more than 8 trillion naira, equivalent to about two percent of gross domestic product, was spent outside approved budgets. The government said the allegations misrepresented observations contained in the International Monetary Fund’s 2026 Article IV consultation report.
In a statement, Finance Minister Taiwo Oyedele said the federal government did not operate a “shadow budget” and could only withdraw and spend public funds in accordance with constitutional provisions and laws passed by the National Assembly.
The ministry said all federal expenditures were undertaken through appropriation acts, supplementary budgets and other statutory authorities approved by lawmakers, while multi-year capital projects followed existing legal provisions, including approved capital rollovers.
It said suggestions that trillions of naira had been spent without legislative approval were inaccurate and should be supported with verifiable evidence identifying specific projects allegedly executed outside legal authorisation.
The government also said several categories of spending, including statutory transfers, debt servicing obligations, intervention programmes, and allocations to agencies established by law, were authorised under existing legislation and disclosed through fiscal reports and oversight mechanisms.
According to the statement, differences between how such expenditures are presented in annual budgets and under international reporting standards should not be interpreted as evidence of unlawful spending.
The ministry further rejected assertions that the reported amount implied a larger fiscal deficit, saying deficits were determined by the relationship between total revenues and expenditures rather than the financing mechanisms used for approved projects.
It added that the IMF’s observations related mainly to the comprehensiveness and presentation of fiscal reporting, noting that Nigeria was working to align its budget processes with international standards as part of broader public financial management reforms.
The government said President Bola Ahmed Tinubu had previously urged lawmakers to harmonise multiple and overlapping budgets into a single framework during the presentation of the 2026 appropriation bill.
The ministry reiterated its commitment to fiscal transparency, accountability and prudent economic management, saying ongoing reforms had strengthened treasury management, revenue administration and the digitalisation of government financial processes.
Nigerian Government Rejects Claims Of N8 Tn Off-Budget Spending
