IMF Report: FG Denies Spending N8tn Outside Approved Budget

The Federal Government has dismissed claims that it spent more than N8 trillion outside the approved budget, describing the allegations as false and misleading.

The clarification was contained in a statement issued by the Federal Ministry of Finance on Sunday July 5, 2026 signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele in response to recent public commentary referencing the International Monetary Fund’s 2026 Article IV Consultation Report.

According to the ministry, the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework governing public finance.

It explained that under Sections 80–83 and 162 of the 1999 Constitution, all public expenditure must be authorised by the National Assembly through Appropriation Acts, Supplementary Appropriation Acts or other relevant laws.

The ministry noted that multi-year capital projects implemented across different budget cycles are carried out in accordance with existing laws and approved capital rollover provisions, stressing that such arrangements should not be interpreted as off-budget spending.

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“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim. To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture,” the statement said.

The ministry further explained that Nigeria’s public finance framework includes statutory transfers, first-line charges and intervention mechanisms created by Acts of the National Assembly, including allocations to development commissions, debt service obligations, security interventions, disaster response and other strategic national programmes.

It stressed that these expenditures are lawful, publicly disclosed and subject to oversight, audit and accountability mechanisms, adding that differences in how they are presented in fiscal reports should not be misconstrued as evidence of illegal spending.

The ministry also rejected claims that the reported figure represented an increase in Nigeria’s budget deficit, explaining that fiscal deficits are determined by the relationship between total government revenue and expenditure, regardless of the financing mechanism for approved projects.

According to the statement, the IMF’s observations relate primarily to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of government expenditure.

It added that President Bola Tinubu had already requested the National Assembly to end the practice of running multiple and overlapping budgets by harmonising them into a single framework during the presentation of the 2026 Appropriation Bill.

The Federal Government reaffirmed its commitment to prudent fiscal management, transparency and accountability, noting that recent reforms in revenue administration, treasury management and digitalisation of government financial processes have been acknowledged by the IMF and other international institutions.

It urged members of the public to base debates on facts and a proper understanding of Nigeria’s constitutional and fiscal framework, warning that misrepresenting technical fiscal observations undermines informed public discourse and democratic accountability.