The Federal Government has dismissed claims that more than ₦8 trillion was spent outside the 2025 budget, describing the allegations as a misinterpretation of the International Monetary Fund (IMF)’s 2026 Article IV Consultation Report.

In a statement issued on Sunday by the Minister of Finance, Taiwo Oyedele, the government maintained that all public expenditures were carried out in line with the provisions of the 1999 Constitution and relevant laws enacted by the National Assembly.

According to the ministry, the Federal Government does not operate a “shadow budget” or spend public funds without legislative approval. It explained that Sections 80 to 83 and 162 of the Constitution require all government spending to be authorised through Appropriation Acts, Supplementary Appropriation Acts or other statutory provisions.

The ministry also clarified that multi-year capital projects implemented under existing laws and approved capital rollovers should not be misconstrued as expenditure outside the budget.

Rejecting claims of secret spending, the government challenged those making the allegations to provide credible evidence, including details of projects allegedly executed without appropriation or legal backing.

“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should identify the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” Oyedele stated.

The ministry further explained that Nigeria’s public finance framework includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly. These include allocations to development commissions and agencies, revenue collection costs retained by designated agencies, debt servicing obligations and special interventions for national priorities such as security and infrastructure.

It noted that while these expenditures are lawful and subject to oversight, audits and accountability, their presentation in fiscal reports may differ from how they appear in the annual Appropriation Act due to international reporting standards.

The government also dismissed suggestions that the reported ₦8 trillion reflected an increase in Nigeria’s fiscal deficit, explaining that fiscal deficits are determined by the relationship between government revenue and expenditure, not the financing method for approved projects.

According to the ministry, the IMF’s observations focused on the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of government spending.

It added that President Bola Tinubu had already directed the harmonisation of multiple and overlapping budgets into a single framework while presenting the 2026 Appropriation Bill to the National Assembly on December 19, 2025.

The Federal Government reaffirmed its commitment to transparency, accountability and prudent fiscal management, highlighting ongoing reforms aimed at improving budget credibility, revenue administration, digitalisation of government financial processes and treasury management.

The ministry urged Nigerians to rely on verified facts and avoid misrepresenting technical observations as evidence of unlawful government spending.