The Federal Government stated that it does not maintain a “shadow budget” or allocate public funds outside the established constitutional and statutory framework for public finance.
The Federal Government refuted allegations that it spent approximately two percent of Nigeria’s Gross Domestic Product (GDP)—estimated at over ₦8 trillion—beyond the approved budget, characterizing the reports as a misrepresentation of remarks made by the International Monetary Fund (IMF) Resident Representative in Nigeria and the organization’s 2026 Article IV Consultation Report. The government stated that the claims were incorrect and could create misunderstandings regarding the country’s fiscal management.
In a statement released on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, clarified that the Federal Government does not engage in a “shadow budget” or allocate public funds in violation of the constitutional and statutory framework governing public finance.
He noted that sections 80–83 and 162 of the 1999 Constitution (as amended) stipulate that public funds can only be withdrawn and used in accordance with the Constitution and laws passed by the National Assembly.
According to him, all Federal Government expenditures are supported by duly enacted Appropriation Acts, Supplementary Appropriation Acts, or other statutory authorizations approved by the National Assembly. Oyedele also indicated that multi-year capital projects, which extend over several budget cycles, are carried out in compliance with existing laws and applicable approved capital rollover provisions.
He explained that these are established aspects of public financial management and should not be misinterpreted as expenditures beyond the budget.
He referred to the suggestions that trillions of naira were spent secretly without legislative approval as inaccurate, stating that such claims should specify the projects allegedly undertaken without appropriation or legal authority and provide credible evidence to substantiate those claims.
“To be meaningful, assertions of this nature must be backed by verifiable facts rather than conjecture.” “It is essential to differentiate between appropriation, expenditure authorization, financing, and fiscal reporting for public education purposes,” he stated.
Oyedele explained that Nigeria’s public finance framework consists of various statutory transfers, first-line charges, and intervention mechanisms established by Acts of the National Assembly.
These components include statutory allocations to development commissions and other legally created agencies, costs of collection and administration retained by designated revenue-collecting agencies, capital expenditures approved under separate budgets for specific agencies and the Federal Capital Territory, and special interventions addressing national priorities such as security, infrastructure, and disaster response, along with debt service obligations and other statutory transfers.
The minister emphasized that these expenditures are neither concealed nor unlawful, noting that they are established by law, disclosed in official fiscal reports, and subject to oversight, audit, and accountability mechanisms.