No Shadow Budget, FG Insists as It Dismisses ₦8tn Spending Claims

The Federal Government has dismissed claims that more than ₦8 trillion was spent outside the 2025 budget, insisting that all public expenditures were made in line with the Constitution and relevant laws.

In a statement issued on Sunday, Minister of Finance Taiwo Oyedele said reports alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, was spent outside the approved budget were based on a misrepresentation of the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.

Oyedele said the Federal Government does not operate a “shadow budget” or spend public funds without legislative approval.

He explained that Sections 80 to 83 and 162 of the 1999 Constitution provide that public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly. According to him, government expenditures are made through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations.

The minister added that multi-year capital projects are implemented under existing laws and approved capital rollover provisions where applicable, noting that such projects should not be interpreted as spending outside the budget.

He described claims of secret spending as baseless, saying those making the allegations should provide evidence by identifying specific projects allegedly executed without appropriation or legal authority.

“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should identify the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” Oyedele said.

The ministry also stated that Nigeria’s public finance system includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly. These cover statutory allocations to development commissions and agencies, revenue collection costs retained by designated agencies, separate capital budgets for some agencies and the Federal Capital Territory, special interventions for national priorities such as security and infrastructure, as well as debt servicing obligations.

It maintained that these expenditures are lawful, publicly disclosed and subject to oversight and audit, although their presentation in fiscal reports may differ from the annual Appropriation Act because of international reporting standards.

The government also rejected claims that the reported ₦8 trillion represented an increase in Nigeria’s fiscal deficit, explaining that fiscal deficits are determined by the relationship between total government revenue and expenditure, not by the financing mechanism for approved projects.

According to the ministry, the IMF’s observations focused on the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of government spending.

The statement noted that President Bola Tinubu had already asked the National Assembly to harmonise multiple and overlapping budgets into a single framework while presenting the 2026 Appropriation Bill on December 19, 2025.

The ministry reaffirmed the administration’s commitment to prudent fiscal management, transparency and accountability through ongoing reforms in budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.

It also urged Nigerians to base public discussions on verified facts and avoid misrepresenting technical observations as evidence of unlawful government spending.