FG denies Claims of ₦8tn Off-Budget Spending, Blames IMF Misinterpretation

The Federal Government has denied reports that it spent more than ₦8 trillion outside the 2026 budget, saying the claim is false and based on a wrong interpretation of the International Monetary Fund’s 2026 Article IV Consultation Report.

The clarification was made on Sunday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following public debate over the IMF’s findings.

The controversy started after the IMF stated that government spending equal to about two per cent of Nigeria’s Gross Domestic Product was not captured in official budget records. IMF Resident Representative in Nigeria, Christian Ebeke, said the unreported expenditure created a statistical gap that should be corrected to give a clearer picture of the country’s finances.

The IMF comments led to criticism from opposition figures, including former Vice President Atiku Abubakar and the presidential candidate of the Nigeria Democratic Congress, Peter Obi, who questioned the handling of public funds and called for further investigation.

Responding to the allegations, Oyedele said the Federal Government does not operate any hidden budget or spend public money outside the legal process. He explained that every withdrawal and expenditure of public funds is guided by the provisions of the 1999 Constitution and laws passed by the National Assembly.

According to him, government spending is carried out through approved Appropriation Acts, Supplementary Appropriation Acts and other legal authorities recognised by the National Assembly. He added that projects spread across different budget years, as well as approved capital rollovers, are normal parts of public financial management and should not be mistaken for off-budget spending.

The minister maintained that anyone accusing the government of secretly spending trillions of naira should provide evidence by identifying specific projects allegedly executed without legislative approval or legal backing.

He also explained that statutory transfers, debt servicing, first-line charges and intervention programmes established through Acts of the National Assembly are lawful parts of Nigeria’s public finance system.

These include allocations to development commissions, revenue collection costs retained by authorised agencies, separate capital budgets for some government institutions and the Federal Capital Territory, security interventions, disaster response efforts and debt repayment obligations.

Oyedele said these expenditures are recognised by law, disclosed through official fiscal reports and remain subject to oversight, audit and accountability procedures.

He also rejected claims that the reported amount automatically increased Nigeria’s fiscal deficit. According to him, the fiscal deficit depends on the difference between government revenue and total expenditure, not on the funding method used for approved projects.

The minister said the IMF’s observations were aimed at improving the completeness and presentation of fiscal reports rather than questioning the legality of government spending.

He recalled that President Bola Tinubu had already urged the National Assembly during the presentation of the 2026 Appropriation Bill in December 2025 to end the practice of operating multiple budgets and instead adopt a single, harmonised budget framework.

Oyedele added that the Federal Government remains committed to prudent financial management, transparency and accountability. He said recent reforms have improved budget credibility, revenue collection, treasury operations and the digital management of government finances.

He urged Nigerians to rely on verified facts when discussing public finance, warning that presenting technical observations as proof of illegal spending could mislead the public and weaken informed discussions on the country’s economy.