Nigerian Government Rebuts Claims of Off-Budget ₦8trn Spending
Nigeria’s Federal Ministry of Finance has rejected claims that the Federal Government spent about two percent of GDP — estimated at over ₦8 trillion outside the approved budget, describing the allegation credited to the International Monetary Fund as “incorrect” and misleading.
In a statement on Sunday, the ministry said Nigeria does not run a “shadow budget” and that public funds can only be withdrawn and spent under constitutional and statutory provisions, including spending backed by Appropriation Acts, Supplementary Appropriation Acts and other laws passed by the National Assembly.
The ministry cited Sections 80–83 and 162 of the 1999 Constitution (as amended) and argued that multi-year capital projects that run across several budget cycles are implemented under existing legal provisions, including capital rollovers where applicable, and should not be misconstrued as spending outside legislative approval.
It said accusations of secret spending should identify specific projects allegedly executed without appropriation or legal authority and provide verifiable evidence, warning that “assertions of this magnitude must be supported by facts rather than conjecture.”
The ministry also sought to distinguish between appropriation, expenditure authorisation, financing and fiscal reporting, noting that Nigeria’s public finance framework includes statutory transfers and “first-line charges” created by Acts of the National Assembly. It listed examples such as statutory allocations to development commissions and other agencies, legally approved retention of collection and administration costs by revenue agencies, National Assembly-approved budgets for certain agencies and the Federal Capital Territory, special interventions for security and emergencies, and debt service obligations authorised by law.
“These expenditures are neither secret nor illegal,” it said, adding that they are disclosed in fiscal reports and remain subject to oversight and audit, though their presentation may differ between the annual Appropriation Act and international reporting classifications.
The statement further dismissed suggestions that the amount cited implied a higher budget deficit, arguing that deficits are determined by the relationship between total revenues and total expenditures, and that the financing route for lawful spending does not by itself increase the deficit.
According to the ministry, references to the IMF’s 2026 Article IV Consultation relate mainly to the “comprehensiveness, timing and presentation” of fiscal reporting, not the legality of spending. It also pointed to President Bola Ahmed Tinubu’s call to the National Assembly to end “multiple and overlapping budgets” and move toward a single cohesive framework during the presentation of the 2026 Appropriation Bill on December 19, 2025.
Signed by Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, the statement said the government remains committed to transparency, accountability and ongoing public financial management reforms, while urging that public debate be grounded in accurate understanding of Nigeria’s fiscal framework.
