FG Rebuts ₦8tn Off-Budget Claim, Insists Spending Fully Lawful

The Federal Government has rejected claims that over ₦8 trillion was spent outside the approved national budget, describing the assertion as inaccurate and a misrepresentation of the International Monetary Fund’s 2026 Article IV Consultation Report.

In an official response, the government stated that it does not operate any “shadow budget,” maintaining that all public expenditure strictly complies with constitutional and statutory provisions governing Nigeria’s fiscal operations.

Citing Sections 80 to 83 and 162 of the 1999 Constitution (as amended), the government emphasised that no public funds can be withdrawn or spent without legislative approval. It noted that expenditures are executed through duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other laws passed by the National Assembly.

The statement dismissed allegations of unauthorised spending running into trillions of naira, challenging proponents of the claim to provide verifiable evidence, including specific projects allegedly executed outside legislative approval.

It further clarified that several categories of expenditure often misunderstood in public discourse are legally backed and transparently reported. These include statutory transfers to agencies and development commissions, revenue collection costs retained by authorised institutions, and capital expenditures approved under separate legislative provisions.

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Also listed were special interventions addressing national priorities such as security, infrastructure, disaster response, and emergency programmes, alongside debt service obligations and other first-line charges established by law.

The government stressed that such expenditures are neither concealed nor unlawful, noting that they are subject to established oversight, audit, and accountability mechanisms. It explained that differences in classification and presentation, particularly under international reporting standards, should not be misconstrued as evidence of extra-budgetary spending.

Addressing concerns over fiscal deficit, the government clarified that the reported figure does not indicate an increase in deficit levels. It explained that deficit calculations depend on the relationship between total revenue and total expenditure, regardless of the financing structure of approved projects.

According to the statement, the IMF’s observations relate primarily to issues of fiscal reporting, including comprehensiveness and presentation, rather than the legality of government spending. It added that Nigeria is actively aligning its fiscal framework with global standards as part of ongoing reforms.

The government recalled that President Bola Ahmed Tinubu had urged the National Assembly to harmonise multiple and overlapping budgets into a unified framework during the presentation of the 2026 Appropriation Bill in December 2025.

It added that recent reforms have strengthened public financial management, improved budget credibility, enhanced revenue transparency, and advanced the digitalisation of government financial processes.

These efforts, the government noted, have been acknowledged by the IMF, international credit rating agencies, and development partners, reflecting growing confidence in Nigeria’s fiscal governance.

While reaffirming its openness to public scrutiny, the government cautioned against misinterpretation of technical fiscal reports, stressing the need for fact-based discourse.

It reiterated its commitment to transparency, accountability, and adherence to the rule of law in the management of public resources, pledging continued collaboration with the National Assembly and oversight institutions to deepen fiscal discipline.