FG Dismisses IMF Claim of ₦8 Trillion Off-Budget Expenditure

The Federal Government has strongly refuted allegations that it disbursed over ₦8 trillion beyond the provisions of the 2026 budget, labelling such reports as factually incorrect and a distortion of the International Monetary Fund’s 2026 Article IV Consultation Report. These assertions, which cited comments from the IMF Representative in Nigeria and the Fund’s report, erroneously suggested that approximately two per cent of Nigeria’s Gross Domestic Product was spent without budgetary approval.

This rebuttal was contained in a statement released on Sunday by Mr. Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy. The government’s denial follows the IMF’s recent disclosure that Nigeria allegedly failed to report public spending equivalent to about 2% of its GDP in recent official budgets. This, according to the IMF, obscured the nation’s actual financial requirements and made the fiscal deficit appear smaller than reality. Speaking in Lagos, Christian Ebeke, the IMF Resident Representative in Nigeria, remarked, “So far we think that there are about two per cent of GDP of expenditure that were not reported that should be reported and should be recorded, so that this statistical discrepancy will disappear.”

Following these revelations, prominent opposition figures, including former Vice President Atiku Abubakar and the National Democratic Party’s presidential candidate, Peter Obi, criticised President Bola Tinubu’s administration, alleging deep-seated corruption and demanding an investigation. However, Oyedele maintained that the Federal Government does not operate a “shadow budget” nor does it spend public funds outside the established constitutional and statutory frameworks.

“The Federal Government has noted recent public commentary alleging that approximately two per cent of GDP amounting to over ₦8 trillion was spent outside the approved budget based on references to the IMF Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report. These claims are incorrect and risk misleading the public regarding the government’s financial management,” the statement clarified.

Oyedele further elaborated that in accordance with Sections 80 to 83 and 162 of the 1999 Constitution, government funds can only be withdrawn and spent in strict adherence to the Constitution and laws enacted by the National Assembly. He affirmed that all Federal Government spending is executed through duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorisations sanctioned by the National Assembly. The Minister also pointed out that multi-year capital projects spanning various budget cycles and approved capital rollovers are recognised components of public financial management and should not be misinterpreted as extra-budgetary spending.

“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 asserted. Oyedele also clarified that statutory transfers, debt service obligations, first-line charges, and intervention mechanisms established by Acts of the National Assembly are integral parts of Nigeria’s public finance framework. He listed examples of legally authorised expenditures, including statutory allocations to development commissions, revenue collection costs retained by designated agencies, separately approved capital budgets for some agencies and the Federal Capital Territory, security and infrastructure interventions, disaster response programmes, and debt servicing obligations.

“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,” he stated. The Minister also dismissed suggestions that the reported sum indicated an increase in Nigeria’s fiscal 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,” he added.

According to Oyedele, the IMF’s observations primarily concern enhancing the comprehensiveness, timeliness, and presentation of fiscal reporting, rather than questioning the legality of government expenditure. He noted that President Tinubu had already, during the presentation of the 2026 Appropriation Bill on December 19, 2025, urged the National Assembly to discontinue the practice of operating multiple and overlapping budgets in favour of adopting a unified, harmonised budget framework. Oyedele concluded by affirming the Federal Government’s commitment to prudent fiscal management, transparency, and accountability, highlighting recent reforms that have bolstered budget credibility, revenue administration, treasury management, and the digitalisation of government financial processes. He urged the public to ground discussions in accurate facts and a thorough understanding of Nigeria’s constitutional and fiscal framework, warning that misrepresenting technical observations as evidence of unlawful expenditure undermines informed public discourse.