Finance Minister Refutes ₦8tn Off-Budget Spending Allegation, Clarifies IMF Report
By Goodness Ekpang
Nigeria Government through the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele has refuted claims that more than ₦8 trillion was spent outside the 2026 approved budget, describing the allegations as a misrepresentation of the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.
In a statement, the Honourable Minister said reports alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, was expended outside the budget were incorrect and capable of misleading the public about the government’s fiscal management.
Oyedele stressed that 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He explained that under Sections 80 to 83 and 162 of the 1999 Constitution (as amended), public funds can only be withdrawn and spent in accordance with laws enacted by the National Assembly. He noted that government expenditures are made through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations.
The minister further explained that multi-year capital projects, which span several budget cycles, are implemented in line with existing laws and approved capital rollover provisions, stressing that such projects should not be misconstrued as off-budget spending.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” he said, adding that allegations of unlawful expenditure should be backed by verifiable evidence identifying specific projects executed without appropriation or legal authority.
While clarifying the issues raised in the IMF report, Oyedele said Nigeria’s public finance system includes statutory transfers, first-line charges and intervention mechanisms created by Acts of the National Assembly. These cover statutory allocations to development commissions and agencies, cost of revenue collection, separately approved capital expenditures, security and infrastructure interventions, debt servicing and other statutory obligations.
According to him, these expenditures are lawful, publicly disclosed and subject to oversight and audit, noting that differences in their presentation under international fiscal reporting standards should not be interpreted as evidence of illegal spending.
The minister also rejected suggestions that the reported amount translated into a higher fiscal deficit, explaining that budget deficits are determined by the relationship between total government revenue and expenditure rather than the financing arrangement for approved projects.
He said the IMF’s observations related mainly to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting, rather than the legality of government spending.
Oyedele recalled that Bola Ahmed Tinubu had already called on the National Assembly to end the practice of running multiple and overlapping budgets and harmonise government budgeting into a single, cohesive framework during the presentation of the 2026 Appropriation Bill.
He reaffirmed the Federal Government’s commitment to prudent fiscal management, transparency and accountability, noting that recent reforms in revenue administration, treasury management, budget credibility and the digitalisation of public finance have received recognition from the IMF, other multilateral institutions, international credit rating agencies and investors.
The minister urged the public to base discussions on Nigeria’s fiscal management on verified facts, warning that mischaracterising technical observations as evidence of unlawful expenditure undermines informed public discourse and democratic accountability.
He reiterated that the Federal Government would continue to uphold the rule of law, strengthen fiscal governance and ensure transparency in the management of public resources in line with international best practices.
