The Federal Government has dismissed claims that it spent over ₦8 trillion outside the approved budget, describing reports suggesting the existence of a “shadow budget” as inaccurate and misleading.
In a statement responding to recent public commentary referencing the International Monetary Fund (IMF) 2026 Article IV Consultation Report, the government insisted that all public expenditure is carried out within the constitutional and statutory framework governing Nigeria’s public finances.
According to the government, public funds can only be withdrawn and spent in line with Sections 80–83 and 162 of the 1999 Constitution (as amended) and through duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other laws passed by the National Assembly.
The statement explained that multi-year capital projects, statutory transfers, first-line charges, debt service obligations, and special interventions for national priorities such as security, infrastructure, and disaster response are all backed by legislation and should not be interpreted as off-budget spending.
The government stressed that differences in how expenditures are presented under international fiscal reporting standards do not imply illegality or secret spending, noting that such classifications are common in public financial management.
It also rejected suggestions that the reported figure represented an increase in Nigeria’s fiscal deficit, explaining that the deficit is determined by the relationship between total government revenue and expenditure, regardless of the lawful financing mechanism used.
The Federal Government further clarified that the IMF’s observations primarily relate to improving the comprehensiveness and presentation of fiscal reporting rather than questioning the legality of government spending.
It recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill, urged the National Assembly to eliminate the practice of operating multiple and overlapping budgets in favour of a single, harmonised budget framework.
Reaffirming its commitment to prudent fiscal management, transparency, and accountability, the government said ongoing reforms—including improved budget credibility, digitalisation of financial processes, enhanced treasury management, and transparent revenue administration—have been recognised by the IMF, international credit rating agencies, and development partners.
The statement concluded by urging Nigerians to base public discourse on verified facts, maintaining that the administration remains committed to strengthening fiscal governance in line with international best practices.
