Amanze Chinonye
The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the 2026 budget, insisting that recent interpretations of the International Monetary Fund’s (IMF) findings misrepresented both the Fund’s assessment and Nigeria’s public finance framework, Prime Business Africa reports.
The clarification follows allegations by former Vice President and African Democratic Congress (ADC) presidential candidate for the 2027 election, Atiku Abubakar, that the Tinubu administration expended about ₦8.8 trillion outside the official budget and was building a political war chest ahead of the 2027 general election.
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Responding in a statement on Sunday, the Federal Ministry of Finance described the allegations as false and capable of misleading the public about the government’s financial 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,” the ministry stated.
It explained that under Sections 80 to 83 and 162 of the 1999 Constitution (as amended), public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
According to the ministry, all Federal Government expenditure is authorised through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory instruments approved by the legislature. It added that multi-year capital projects, which extend beyond a single budget cycle, are implemented in line with existing laws governing capital rollovers and should not be misconstrued as off-budget spending.
The ministry argued that claims of trillions of naira being spent secretly outside legislative approval lacked evidence, noting that such allegations should identify specific projects allegedly executed without appropriation or legal authority.
It further explained that Nigeria’s public finance system includes several categories of expenditure established by law, including statutory transfers, first-line charges, debt service obligations, intervention funds, and allocations to agencies and commissions created by Acts of the National Assembly.
Other legally authorised expenditures, it said, include the cost of revenue collection retained by designated agencies, capital expenditure approved under separate budgets for some agencies and the Federal Capital Territory, as well as special interventions for infrastructure, security, disaster response and other national priorities.
According to the ministry, these expenditures are neither secret nor unlawful but are disclosed through various fiscal reports and remain subject to legislative oversight and audit. It noted that while their presentation may differ under international fiscal reporting standards, such classification differences should not be interpreted as evidence of illegal spending.
The ministry also rejected suggestions that the IMF’s observations indicated an increase in Nigeria’s fiscal deficit.
It explained that the Fund’s concern related primarily to the comprehensiveness and presentation of fiscal reporting rather than the legality of government expenditure.
According to the ministry, the IMF observed that some capital projects financed through lawful statutory mechanisms were not fully reflected in budget implementation reports, creating a discrepancy between Nigeria’s reported fiscal deficit and its actual financing requirements.
It added that the Tinubu administration had already initiated reforms to address the issue, including efforts to harmonise multiple budget frameworks into a single, more comprehensive reporting system.
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The ministry recalled that President Bola Tinubu, while presenting 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 fiscal framework.
It further maintained that Nigeria’s fiscal deficit is determined by the relationship between total government revenue and expenditure, not by the financing mechanism adopted for projects already authorised by law.
The ministry said ongoing reforms in budget credibility, revenue administration, treasury management and the digitalisation of public financial processes had strengthened fiscal management and had been acknowledged by the IMF, international credit rating agencies, development partners and investors.
While reaffirming the Federal Government’s commitment to transparency, accountability and prudent fiscal management, the ministry urged Nigerians to distinguish between technical issues relating to fiscal reporting and allegations of unlawful expenditure.
It stressed that public discourse on fiscal matters should be guided by verifiable facts and a proper understanding of Nigeria’s constitutional and public finance framework, rather than what it described as a mischaracterisation of the IMF’s technical observations.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
