Taiwo Oyedele

By Chibuike Nwabuko

ABUJA (PRECISE POST) –   The Federal Government has dismissed claims that more than ₦8 trillion, representing about two per cent of Nigeria’s Gross Domestic Product (GDP), was spent outside the 2026 approved budget, describing the allegation as false, misleading and a misinterpretation of the International Monetary Fund (IMF) Article IV Consultation Report.

In a statement issued on behalf of the Federal Government on Sunday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said Nigeria does not operate a “shadow budget” and that all public expenditures are carried out strictly within the constitutional and legal framework governing public finance.

Precise Post recalls that former Vice President Atiku Abubakar on Saturday accused the administration of President Bola Tinubu of operating a multi-trillion-naira “shadow budget” after citing findings from the International Monetary Fund (IMF), and called for an urgent investigation into alleged off-budget public spending.
In a statement posted on his Facebook page, Atiku claimed that an IMF Article IV consultation, reported by Reuters on July 1, 2026, indicated that the Federal Government failed to record public expenditures equivalent to about two per cent of Nigeria’s Gross Domestic Product in recent official budgets.

However, Oyedele explained that recent public commentary citing the IMF’s 2026 Article IV Consultation Report had wrongly suggested that the Federal Government secretly spent over ₦8 trillion without legislative approval.

According to him, such claims distort the IMF’s observations and create a false impression about the country’s fiscal management.
“For the avoidance of doubt, the Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” he stated.
The minister stressed that under Sections 80 to 83 and 162 of the 1999 Constitution, as amended, no public funds can be withdrawn or spent except in accordance with laws passed by the National Assembly.
He noted that federal expenditures are undertaken through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by lawmakers.
Oyedele further explained that some capital projects extend beyond a single fiscal year and are legally implemented through approved capital rollovers, adding that this is a standard practice in public financial management and should not be mistaken for off-budget spending.
He challenged those making the allegations to identify specific projects allegedly executed without appropriation or legal authority, insisting that claims of such magnitude must be backed by verifiable evidence rather than speculation.
The minister also clarified that Nigeria’s fiscal framework provides for several statutory transfers, first-line charges and intervention mechanisms established through Acts of the National Assembly.
These include statutory allocations to development commissions and government agencies, cost of revenue collection retained by designated agencies, capital expenditures approved under separate budgets for certain agencies and the Federal Capital Territory, as well as special interventions for national priorities such as security, infrastructure, disaster response and strategic programmes.
He added that debt servicing and other statutory transfers also fall within legally authorised expenditures.
According to Oyedele, these expenditures are neither secret nor unlawful, as they are established by legislation, disclosed in government fiscal reports and subjected to oversight, audit and accountability mechanisms.
He explained that while some expenditures may be presented differently under international fiscal reporting standards, such classification differences should not be interpreted as evidence of illegal spending.
The minister also rejected claims that the reported amount represented an increase in Nigeria’s fiscal deficit.
He explained that a fiscal deficit is determined by the gap between total government revenue and total expenditure, not by the financing mechanism used for approved projects.
Oyedele said the IMF’s observations primarily related to improving the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government expenditure.
He noted that the Federal Government is already implementing reforms to align budget presentation with international reporting standards.
He recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, urged lawmakers to discontinue the practice of operating multiple and overlapping budgets in favour of a unified budget framework.
Oyedele maintained that the Tinubu administration remains committed to prudent fiscal management, transparency and accountability, noting that recent reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
He added that these reforms have received recognition from the International Monetary Fund, other multilateral institutions, international credit rating agencies, investors and global media organisations.
While acknowledging the importance of public scrutiny and debate in a democratic society, the minister urged commentators to ensure that discussions are based on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.
He reaffirmed that the Federal Government would continue to uphold the rule of law, ensure transparency in the management of public resources and work with the National Assembly, oversight institutions, development partners and Nigerians to strengthen fiscal governance in line with international best practices.