FG to critics: No ₦8tn ‘Shadow Budget’, spending backed by law

By Adebola Isimijola, Lagos

The Federal Government has dismissed allegations that it spent more than ₦8 trillion outside the approved budget, insisting that all public expenditures are made strictly in line with the Constitution and laws enacted by the National Assembly.

The government said the claims, which stemmed from recent public commentary referencing the International Monetary Fund (IMF) Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report, were inaccurate and capable of misleading the public about the country’s fiscal management.

In a statement issued on Sunday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said the Federal Government does not operate a “shadow budget” or expend public funds outside the constitutional and statutory framework governing public finance.

“The Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” Oyedele said.

He explained that Sections 80 to 83 and 162 of the 1999 Constitution (as amended) provide that public funds can only be withdrawn and spent in accordance with the Constitution and laws passed by the National Assembly.

According to the minister, Federal Government expenditure is incurred through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities, while multi-year capital projects are implemented under existing laws governing capital rollovers where applicable.

Oyedele described as false suggestions that trillions of naira had been secretly spent without legislative approval, stressing that such allegations should be supported by credible evidence.

“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,” he stated.

He noted that Nigeria’s public finance framework provides for statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly, including allocations to development commissions and agencies, debt service obligations, revenue collection costs and special interventions for security, infrastructure, disaster response and other national priorities.

The minister stressed that such expenditures are lawful, publicly disclosed and subject to oversight, audit and accountability mechanisms, adding that differences in fiscal reporting classifications should not be mistaken for unlawful spending.

Oyedele also rejected claims that the reported amount represented an increase in the country’s fiscal deficit, explaining that a fiscal deficit is determined by the relationship between total government revenue and expenditure rather than the financing arrangements for approved projects.

He further clarified that the IMF’s observations related mainly to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting, not the legality of government spending.

The minister recalled that President Bola Ahmed Tinubu had, while presenting the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, called for an end to the practice of operating multiple and overlapping budgets in favour of a single, harmonised budget framework.

Reaffirming the administration’s commitment to prudent fiscal management, transparency and accountability, Oyedele said ongoing reforms had strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.

He added that the reforms had been acknowledged by the IMF, other multilateral institutions, international credit rating agencies, investors and major global media organisations.

The minister urged Nigerians to base public discourse on verifiable facts and a proper understanding of the country’s constitutional and fiscal framework, assuring that the Federal Government would continue to uphold the rule of law and strengthen fiscal governance in line with international best practices.