FG Denies ₦8trn Off-Budget Spending Claims
The Federal Government has rejected reports that it spent more than ₦8 trillion outside the 2026 approved budget, describing the claims as inaccurate and a misinterpretation of the IMF’s 2026 Article IV Consultation Report.
Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele issued the rebuttal on Sunday, stressing that the government does not operate a shadow budget.
“These claims are incorrect and risk misleading the public regarding the government’s financial management,” he said.
The controversy followed remarks by IMF Resident Representative Christian Ebeke, who said about 2% of Nigeria’s GDP in expenditure had not been reported in official budgets, creating discrepancies in fiscal deficit figures.
Oyedele explained that under Sections 80–83 and 162 of the 1999 Constitution, public funds can only be withdrawn and spent through Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities approved by the National Assembly.
He noted that multi-year capital projects and approved capital rollovers are recognised components of public financial management and 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 added.
The Minister listed statutory transfers, debt service obligations, first-line charges, and intervention mechanisms established by law as expenditures that are transparent, audited, and subject to oversight.
Oyedele clarified that the IMF’s observations were about improving the comprehensiveness of fiscal reporting, not questioning legality.
He recalled that President Tinubu had already asked the National Assembly to adopt a single harmonised budget framework to end overlapping budgets.
He concluded that recent reforms have strengthened budget credibility, revenue administration, treasury management, and digitalisation of financial processes, framing the IMF’s comments as part of ongoing improvements rather than evidence of mismanagement.