The Federal Government has dismissed claims that it spent about two per cent of Nigeria’s Gross Domestic Product (GDP)—estimated at more than ₦8 trillion—outside the approved budget, describing the reports as a misrepresentation of comments by the International Monetary Fund (IMF) Resident Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
The government said the claims were inaccurate and risked misleading the public about Nigeria’s fiscal management.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework governing public finance.
He explained that Sections 80–83 and 162 of the 1999 Constitution (as amended) stipulate that public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
According to the minister, all Federal Government expenditure is backed by duly enacted Appropriation Acts, Supplementary Appropriation Acts or other statutory authorisations approved by the National Assembly.
He added that multi-year capital projects, which span several budget cycles, are implemented in line with existing laws and approved capital rollover provisions where applicable.
“These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget,” he said.
Edun described as unfounded suggestions that trillions of naira were secretly spent without legislative approval, arguing that anyone making such allegations should identify the specific projects allegedly executed without appropriation or legal authority and provide credible evidence.
“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,” he said.
The minister noted that Nigeria’s public finance framework provides for 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 established by law, cost-of-collection and administrative charges retained by designated revenue-generating agencies, capital expenditure approved under separate budgets for certain agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure and disaster response, as well as debt service obligations and other statutory transfers.
Edun stressed that such expenditures are neither secret nor unlawful, noting that they are established by law, disclosed in official fiscal reports and subject to legislative oversight and audit.
“Their treatment for reporting purposes may differ from their presentation in the annual Appropriation Act, particularly under international statistical and reporting standards adopted by the Federal Government. Such classification differences should not be misrepresented as evidence of unlawful expenditure,” he said.
He also rejected claims that the reported amount represented an increase in 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 said.
According to the minister, the IMF’s observation related primarily to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government expenditure.
He said Nigeria, like many other countries, is working to improve the alignment between its budget presentation and international fiscal reporting standards as part of ongoing public financial management reforms.
Edun recalled that President Bola Tinubu, while presenting the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, called for an end to the practice of operating multiple and overlapping budgets in favour of a single, harmonised budget framework.
He said the Federal Government remains committed to prudent fiscal management, transparency and accountability, adding that recent reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
According to him, the reforms have been acknowledged by the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
While describing public debate as essential in a democracy, the minister urged commentators to base their arguments on facts and a proper 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.
He added that the government would continue to uphold the rule of law, ensure transparency in the management of public resources and work with the National Assembly, oversight institutions, development partners and Nigerians to strengthen fiscal governance in line with international best practices.
The controversy followed reports citing IMF Resident Representative in Nigeria, Christian Ebeke, as saying the country had failed to capture public spending equivalent to about two per cent of GDP in recent budgets.
According to the IMF, the omission—linked in part to major government projects executed outside the formal budget framework—made Nigeria’s fiscal deficit appear smaller than its actual financing needs and weakened fiscal transparency. The Fund, however, noted that the Federal Government had begun addressing the issue through reforms to budget laws and improvements in fiscal reporting.
The IMF’s observations drew criticism from opposition figures, including former Vice President Atiku Abubakar and former Anambra State governor Peter Obi.
Atiku called on the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the National Assembly and the Auditor-General of the Federation to investigate what he described as about ₦8.8 trillion in off-budget spending, alleging that the funds were spent without legislative approval or public accountability.
Obi also cited the report as evidence of “grand corruption”, arguing that the alleged ₦8.83 trillion expenditure fell outside legislative oversight and calling for greater transparency and accountability in the management of public finances.
