The federal government has responded to allegations that 2% of Nigeria’s Gross Domestic Product, amounting to over ₦8 trillion was spent outside the budget based on references to the IMF Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
There have been reports that the federal government failed to record public spending equivalent to about 2% of Nigeria’s Gross Domestic Product (GDP) in recent budgets.
This followed a disclosure by the International Monetary Fund (IMF) Resident Representative in Nigeria, Christian Ebeke, during an engagement with business executives in Lagos last week.
However, the federal government, has responded to the allegation through the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
He stated that “the claims are incorrect and risk misleading the public regarding the government’s financial
management.”
Oyedele’s posted his response on Sunday on his X (formerly Twitter) handle @taiwoyedele.
The minister’s post read: “For the avoidance of doubt, the Federal Government does not operate a “shadow budget” or expend public funds outside the constitutional and statutory framework established for public finance.
“Under Sections 80 – 83 and 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), public funds may only be withdrawn and expended in accordance with the Constitution and laws enacted by the National Assembly.
“Accordingly, Federal Government expenditure is incurred pursuant to duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities enacted by the National Assembly.
“In addition, multi-year capital projects which necessarily span multiple budgets are implemented in accordance with extant laws and approved provisions for capital rollovers where applicable.
“These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget.”
Oyedele said it was inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval.
According to him such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim.
“To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture,” he stated.
He said it is important to distinguish between appropriation, expenditure authorisation, financing, and fiscal reporting to ensure that the public understand the issues surrounding public finance.
Oyedele said Nigeria’s public finance framework contains several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.
He listed these as statutory allocations and contributions to development commissions and other agencies created by law, cost of collection and cost of administration retained by designated revenue-collecting agencies as expressly provided under relevant legislation and Capital expenditure approved in separate budgets for some agencies and the Federal Capital Territory by the National Assembly.
Others are special interventions approved by law to address national priorities such as security, infrastructure, disaster response, and other strategic national programmes or emergencies and debt service obligations and other statutory transfers that are authorised under applicable legislation.
“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit and accountability mechanisms.
“Their treatment for reporting purposes may differ from their presentation in the annual Appropriation Act, particularly under international statistical and reporting standards adopted by the Federal Government. Such classification differences should not be misrepresented as evidence of unlawful expenditure.”
Oyedele said it is equally incorrect to suggest that the reported amount represents an increase in budget deficit.
“A fiscal deficit is determined by the relationship between total government revenues and total government expenditures.
“Whether a capital project is financed through annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms, or other lawful financing arrangements does not, by itself, increase the fiscal deficit.”
According to him, the IMF’s observation relates primarily to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure.
“Like many countries, Nigeria continues to strengthen the alignment between budget presentation and international fiscal reporting standards as part of ongoing public financial management reforms.
“As a matter of fact, His Excellency, President Bola Ahmed Tinubu, GCFR had himself formally requested the National Assembly to end the practice of running multiple and overlapping budgets, and rather harmonise into a single, cohesive framework during his presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025.”
The minister restated the federal government’s firm committed to prudent fiscal management, transparency and accountability.
“Recent reforms have significantly strengthened public financial management with ongoing improvements in budget assumptions and credibility, transparent revenue administration, digitalisation of government financial processes, and stronger treasury management.
“These reforms have been acknowledged by the IMF itself and other multilateral institutions, as well as international credit rating agencies, major media organisations and investors,” he stated.
While noting that public debate is both welcome and essential in a democratic society, Oyedele said it should be based on facts and an accurate understanding of Nigeria’s constitutional and fiscal framework.
“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public⁷ discourse nor strengthens democratic accountability,” he said.
The minister said the federal hovernment would continue to uphold the rule of law, maintain transparency in the management of public resources, and work with the National Assembly, development partners and Nigerians to strengthen fiscal governance in line with international best practices.
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