By Seun Ibiyemi
The Federal Government has dismissed allegations that it operated a “shadow budget” and spent over ₦8 trillion outside the 2026 approved appropriation, insisting that all public expenditures were carried out within the constitutional and legal framework governing Nigeria’s public finances.
The government’s response follows criticism by former Vice President Atiku Abubakar, who cited the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report to allege that the administration spent the equivalent of about two per cent of Nigeria’s Gross Domestic Product (GDP) outside the approved budget.
In a statement issued on Sunday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the claims as a misrepresentation of the IMF’s findings and warned that they risk misleading the public about the country’s fiscal management.
According to him, the Federal Government does not operate a “shadow budget” or expend public funds outside the constitutional and statutory provisions governing public finance.
Oyedele explained that Sections 80 to 83 and 162 of the 1999 Constitution (as amended) clearly provide that public funds can only be withdrawn and spent in accordance with laws enacted by the National Assembly.
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He noted that government expenditure is undertaken through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the legislature, while multi-year capital projects are implemented under existing legal provisions that permit capital rollovers where necessary.
“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,” the minister said.
He further explained that Nigeria’s public finance framework provides for several statutory transfers, first-line charges and intervention mechanisms established through Acts of the National Assembly.
These include statutory allocations to development commissions and other agencies, cost of collection retained by designated revenue-generating agencies, capital expenditure approved under separate budgets for some 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.
According to Oyedele, such expenditures are lawful, publicly disclosed and subject to oversight, audit and accountability mechanisms, adding that differences in their presentation under international fiscal reporting standards should not be interpreted as evidence of illegal or secret spending.
The minister also rejected suggestions that the reported ₦8 trillion represented an increase in Nigeria’s fiscal deficit, explaining that a fiscal deficit is determined by the relationship between total government revenue and expenditure, not by the financing arrangements for approved projects.
He stressed that the IMF’s observations were primarily related to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government spending.
Oyedele recalled that President Bola Ahmed Tinubu had, while presenting the 2026 Appropriation Bill to the National Assembly in December 2025, called for an end to the practice of multiple and overlapping budgets in favour of a single, harmonised budget framework.
He maintained that the Federal Government remains committed to prudent fiscal management, transparency and accountability, noting that ongoing reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of public financial processes.
According to him, these reforms have been acknowledged by the IMF, international credit rating agencies, multilateral institutions and investors.
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While affirming that public debate is essential in a democratic society, Oyedele urged political leaders and stakeholders to ensure that discussions on public finance are based on verifiable facts and an accurate understanding of Nigeria’s constitutional and fiscal framework.
He reiterated the Federal Government’s commitment to strengthening fiscal governance, maintaining transparency in the management of public resources and working with the National Assembly and other stakeholders to align Nigeria’s public financial management with international best practices.
