Federal Government Denies Secret Spending Claims
The Federal Government has firmly denied allegations that it secretly spent approximately N8.8 trillion outside the approved national budget, asserting that reports based on the International Monetary Fund's (IMF) latest assessment have been misinterpreted. The government insists that every expenditure under President Bola Tinubu's administration is fully authorised under Nigeria's constitutional and legal framework, rejecting any notion of a "shadow budget."
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, clarified that reports suggesting the government spent funds equivalent to about two percent of Nigeria's Gross Domestic Product (GDP) without legislative approval were inaccurate. He explained that comments made by the IMF Resident Representative in Nigeria and the Fund's 2026 Article IV Consultation Report were distorted, creating a false impression of illegal spending.
Constitutional Framework Governs All Expenditure
Oyedele emphasised that the Federal Government does not spend public funds outside the constitutional and statutory framework governing public finance. He cited Sections 80 to 83 and 162 of the 1999 Constitution, which stipulate that public funds can only be withdrawn and spent in accordance with laws passed by the National Assembly. The minister stressed that every government expenditure is supported by Appropriation Acts, Supplementary Appropriation Acts, or other statutory approvals granted by lawmakers.
He noted that many government projects span multiple budget cycles and are implemented under approved capital rollover provisions where applicable. "These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget," Oyedele said. He challenged those alleging secret spending to provide evidence by identifying specific projects executed without legislative approval, insisting that claims of such magnitude must be supported by verifiable facts rather than speculation.
Fiscal Framework Includes Lawful Expenditures
Oyedele explained that Nigeria's fiscal framework encompasses statutory transfers, first-line charges, and intervention mechanisms established by Acts of the National Assembly. These include allocations to development commissions, debt servicing obligations, intervention funds for infrastructure, security, and disaster response, as well as the cost of revenue collection retained by designated agencies. He stressed that these expenditures are lawful, publicly disclosed, and subject to audit and oversight, even though their presentation under international reporting standards may differ from how they appear in the annual budget.
The minister also dismissed suggestions that the reported amount automatically increased Nigeria's fiscal deficit, explaining that deficits are determined by the relationship between total government revenue and expenditure, not by the classification of spending.
IMF Report Focused on Fiscal Reporting Improvements
According to Oyedele, the IMF's observations primarily aimed at improving the comprehensiveness and presentation of Nigeria's fiscal reporting rather than questioning the legality of government spending. He recalled that President Bola Tinubu had already called for a harmonised national budget framework while presenting the 2026 Appropriation Bill to the National Assembly in December 2025, as part of broader reforms to enhance fiscal transparency.
The controversy followed reports that IMF Resident Representative Christian Ebeke stated that Nigeria failed to capture public spending equivalent to about two percent of GDP in recent budgets, making the country's fiscal deficit appear lower than its actual financing needs. The IMF acknowledged that the Federal Government had begun reforms to strengthen fiscal reporting and align budget presentation with international standards.
Political Reactions and Calls for Investigation
The IMF report triggered criticism from opposition leaders, including former Vice President Atiku Abubakar and former Anambra State governor Peter Obi. Atiku called on the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC), the National Assembly, and the Auditor-General of the Federation to investigate the alleged N8.8 trillion off-budget spending. Obi described the report as evidence of "grand corruption" and demanded greater transparency and accountability in public finance management.
Oyedele reaffirmed the government's commitment to prudent fiscal management, transparency, and accountability, stating that ongoing reforms have strengthened budget credibility, treasury management, and revenue administration. These reforms have earned recognition from the IMF, international investors, and global credit rating agencies.
