FG dismisses ‘N8trn shadow budget’ claims, defends fiscal....

The Federal Government has firmly denied allegations that it spent more than ₦8 trillion outside the 2026 Appropriation Act, insisting that every naira of public expenditure is backed by constitutional and statutory authority and warning that contrary claims misrepresent the International Monetary Fund’s (IMF) assessment of Nigeria’s public finances.

The clarification follows public commentary suggesting that about two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, was spent outside the approved budget based on interpretations of the IMF’s 2026 Article IV Consultation Report and comments attributed to the Fund’s Resident Representative in Nigeria.

In a statement signed by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, the government described the claims as inaccurate and capable of misleading the public about Nigeria’s fiscal management.

According to the minister, the Federal Government does not operate a “shadow budget” or expend public funds outside the constitutional framework governing public finance.

He explained that Sections 80 to 83 and 162 of the 1999 Constitution (as amended) clearly stipulate that public funds can only be withdrawn and spent in accordance with laws enacted by the National Assembly.

Consequently, he said all Federal Government expenditures are executed through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory approvals granted by the National Assembly.

Oyedele noted that multi-year capital projects, which naturally extend beyond a single fiscal year, are implemented through approved capital rollovers and existing legal provisions, stressing that such arrangements are recognised features of public financial management and should not be interpreted as off-budget spending.

“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the minister said, adding that allegations of such magnitude should identify the specific projects allegedly executed without appropriation and provide verifiable evidence.

He explained that public finance reporting requires a clear distinction between appropriation, expenditure authorisation, financing arrangements and fiscal reporting.

According to him, Nigeria’s fiscal framework contains several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.

These include statutory allocations to development commissions and other agencies, cost-of-collection deductions by revenue-generating agencies, separately approved capital budgets for some agencies and the Federal Capital Territory, as well as legally authorised interventions for national priorities such as security, infrastructure, disaster response and debt service obligations.

Oyedele stressed that these expenditures are neither secret nor unlawful, noting that they are disclosed in official fiscal reports and remain subject to legislative oversight, audit and accountability mechanisms.

He added that differences in how such expenditures are classified under international fiscal reporting standards should not be misconstrued as evidence of illegal spending.

The minister also rejected suggestions that the reported figure represents an increase in Nigeria’s fiscal deficit.

He, therefore, explained that a fiscal deficit is determined by the gap between total government revenue and total expenditure, adding that financing capital projects through supplementary appropriations, statutory transfers or other lawful mechanisms does not automatically widen the deficit.

According to him, these reforms have received positive recognition from the IMF, other multilateral institutions, international credit rating agencies, global investors and major international media organisations.

While reaffirming the government’s commitment to transparency, accountability and prudent fiscal management, Oyedele urged stakeholders to base public discourse on verified facts rather than technical misinterpretations of fiscal reports.

He said the Federal Government would continue working with the National Assembly, oversight institutions, development partners and other stakeholders to strengthen fiscal governance in line with international best practices.