The Federal Government has rejected allegations that it spent more than ₦8 trillion outside the 2026 Appropriation Act, insisting that the claims are false and based on a misinterpretation of the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said reports suggesting the government expended about two per cent of Nigeria’s Gross Domestic Product outside the approved budget were misleading.
The clarification follows comments by the IMF indicating that Nigeria failed to report public spending equivalent to about two per cent of its GDP in recent official budgets, a situation the Fund said understated the country’s actual financing requirements and made its fiscal deficit appear lower than it was.
Speaking in Lagos, IMF Resident Representative in Nigeria, Christian Ebeke, said, “So far we think that there are about two per cent of GDP of expenditure that were not reported that should be reported and should be recorded, so that this statistical discrepancy will disappear.”
The IMF’s remarks prompted criticism from opposition figures, including former Vice President Atiku Abubakar and the National Democratic Party’s presidential candidate, Peter Obi, who accused President Bola Tinubu’s administration of institutionalised corruption and demanded an investigation.
Responding to the allegations, Oyedele maintained that the Federal Government does not maintain a parallel or hidden budget and cannot spend public funds outside constitutional and legal provisions.
“The Federal Government has noted recent public commentary alleging that approximately two per cent 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,” the statement said.
The minister explained that Sections 80 to 83 and 162 of the 1999 Constitution strictly regulate the withdrawal and expenditure of public funds, adding that all Federal Government spending is backed by duly enacted Appropriation Acts, Supplementary Appropriation Acts, or other statutory approvals granted by the National Assembly.
He further stated that ongoing capital projects executed across multiple budget cycles, as well as approved capital rollovers, are recognised components of public financial management and should not be mistaken for expenditure 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,” he said.
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Oyedele also pointed out that statutory transfers, debt servicing obligations, first-line charges and intervention programmes created by Acts of the National Assembly are legitimate elements of Nigeria’s fiscal system.
According to him, these include statutory allocations to development commissions, revenue collection costs retained by designated agencies, separately approved capital budgets for certain agencies and the Federal Capital Territory, security and infrastructure interventions, disaster response programmes and debt servicing commitments.
“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit and accountability mechanisms,” he stated.
The minister also dismissed suggestions that the reported amount reflected an expansion of Nigeria’s fiscal deficit.
“A fiscal deficit is determined by the relationship between total government revenues and total government expenditures.
Whether a capital project is financed through annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms, or other lawful financing arrangements does not, by itself, increase the fiscal deficit,” he added.
Oyedele stressed that the IMF’s observations were aimed at improving the completeness, timing and presentation of fiscal reporting rather than questioning the legality of government expenditure.
He recalled that while presenting the 2026 Appropriation Bill to the National Assembly on December 19, 2025, President Bola Tinubu had called for an end to the practice of operating multiple and overlapping budgets in favour of a unified budget framework.
The minister reaffirmed the government’s commitment to fiscal discipline, transparency and accountability, noting that recent reforms have strengthened budget credibility, revenue collection, treasury management and the digitalisation of public 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, oversight institutions, development partners and the Nigerian people to further strengthen fiscal governance in line with international best practices,” he added.
He also urged Nigerians to rely on accurate information when discussing public finance issues, warning that portraying technical observations as evidence of illegal government spending only distorts public understanding of the country’s fiscal management.