The Federal Government has dismissed claims that over ₦8 trillion was spent outside the 2025 budget, insisting that all public expenditures were made within Nigeria’s constitutional and legal framework.
In a statement issued on Sunday by Taiwo Oyedele, Minister of Finance, the government said reports alleging that about two percent 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.
The ministry maintained that the Federal Government does not operate a “shadow budget” or spend public funds without legislative approval.
It explained that under Sections 80 to 83 and 162 of the 1999 Constitution, all public funds can only be withdrawn and spent in accordance with the Constitution and laws passed by the National Assembly. According to the ministry, government expenditure is undertaken through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations.
The ministry added that multi-year capital projects are implemented under existing laws and approved capital rollovers where applicable, stressing that such projects should not be interpreted as spending outside the budget.
It further argued that allegations of secret spending lacked evidence, saying anyone making such claims should identify 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 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,” Oyedele said.
The ministry also clarified that Nigeria’s public finance system includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly. These include 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.
According to the ministry, these expenditures are lawful, publicly disclosed and subject to oversight, audit and accountability mechanisms, although their presentation in fiscal reports may differ from their appearance in the annual Appropriation Act due to international reporting standards.
The government also rejected suggestions that the reported ₦8 trillion represented an increase in the country’s fiscal deficit, explaining that fiscal deficits are determined by the relationship between total government revenue and expenditure rather than the financing mechanism used for approved projects.
It stated that the IMF’s observations were primarily about the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of government spending.
The ministry 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.
It added that the administration remained committed to prudent fiscal management, transparency and accountability, citing ongoing reforms in budget credibility, revenue administration, digitalisation of government financial processes and treasury management.
The statement urged Nigerians to base public debate on verified facts and an accurate understanding of the country’s fiscal framework, warning against misrepresenting technical observations as evidence of unlawful expenditure.