The Federal Government on Sunday denied claims that more than ₦8 trillion was spent outside the 2026 budget, saying the allegation misrepresented the International Monetary Fund’s, IMF, recent observations on Nigeria’s fiscal reporting.
In a statement issued by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the government said it does not operate a “shadow budget” and that federal spending is carried out only within the constitutional and statutory framework approved by the National Assembly.
“These claims are incorrect and risk misleading the public regarding the government’s financial management,” the statement said.
The government’s response followed criticism from former Vice President Atiku Abubakar, who asked the administration to explain what he described as the omission of public expenditure equivalent to two per cent of GDP from recent budgets after the IMF’s 2026 Article IV consultation.
“If, as the IMF has revealed, expenditure amounting to two per cent of Nigeria’s GDP was omitted from the budget process, then Nigerians are entitled to one simple question: Who authorised the spending?” Atiku said in a statement by his aide, Phrank Shaibu.
Atiku said the issue went beyond accounting and raised constitutional, legal and ethical questions about public finance management. He also linked the matter to the controversy surrounding the Presidential Foreign Intervention Promotion Council, saying the developments pointed to weak institutional accountability.
“The books must be opened. Every expenditure should be accounted for, and any official found culpable should be held responsible in accordance with the law,” he said.
He called on the National Assembly, the Auditor-General of the Federation, the Public Accounts Committees, the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission to investigate the reported discrepancies.
But Oyedele said the criticism wrongly treated a fiscal reporting issue as evidence of unlawful spending. Citing Sections 80 to 83 and 162 of the 1999 Constitution, he said public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly, including Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities.
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“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” Oyedele said. “Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim.”
The minister said statutory transfers, debt service obligations, first-line charges, approved interventions and multi-year capital projects were all recognised features of public financial management and should not be misconstrued as unlawful off-budget spending.
“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 said.
The controversy followed remarks attributed to IMF Resident Representative in Nigeria, Christian Ebeke, who said: “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.”
Oyedele said the IMF’s observation related mainly to the comprehensiveness, timing and presentation of fiscal reporting, rather than the legality of government expenditure.
He also rejected suggestions that the reported amount automatically implied a higher fiscal deficit, saying deficit levels are determined by the relationship between total government revenues and expenditures, not simply by how specific items are presented in annual budget documents.
Crediblenewsng.com
