FG denies spending N8trn outside budget, defends public finance process

The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the 2026 budget, insisting that all public expenditures were carried out within the constitutional and legal framework governing public finance.

In a statement issued on Sunday by the Federal Ministry of Finance, the government said reports suggesting that about two per cent of Nigeria’s Gross Domestic Product was spent through a “shadow budget” misrepresented comments attributed to the International Monetary Fund and the Fund’s 2026 Article IV Consultation Report.

The ministry stated that the Federal Government does not operate any unofficial budget, stressing that all withdrawals and spending of public funds are authorised through Appropriation Acts, Supplementary Appropriation Acts and other laws passed by the National Assembly.

It explained that some capital projects extend across multiple budget cycles and are implemented through approved rollover provisions, adding that such expenditures should not be interpreted as spending outside the budget.

According to the ministry, allegations that trillions of naira were secretly spent without legislative approval were unfounded and lacked supporting evidence.

The statement also clarified that several government expenditures, including statutory transfers, debt servicing, intervention programmes, development commissions, security spending and capital projects executed under separate legal frameworks, are all backed by existing laws and remain subject to oversight and audit.

The government noted that differences in how some expenditures are presented in fiscal reports, particularly under international reporting standards, should not be mistaken for illegal spending.

It further rejected suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit, explaining that budget deficits are determined by the gap between government revenue and expenditure, not by the financing mechanism used for approved projects.

The ministry said the IMF’s observations were focused on improving the comprehensiveness and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government spending.

It recalled that President Bola Tinubu had already urged the National Assembly to harmonise multiple and overlapping budgets into a single fiscal framework during the presentation of the 2026 Appropriation Bill.

Reaffirming its commitment to transparency and accountability, the Federal Government said ongoing reforms had strengthened budget credibility, treasury management, revenue administration and the digitalisation of public financial processes.

The ministry urged Nigerians to rely on verified facts when discussing public finance, maintaining that informed debate should be based on a proper understanding of the country’s constitutional and fiscal framework.