FG Refutes \u20a68tn “shadow budget” Claims, Says All Spending Follows Due Process<\/p>\n
The Federal Government has refuted recent public commentary alleging that approximately two percent of GDP, amounting to over \u20a68 trillion, was spent outside the approved budget based on references to the IMF Representative in Nigeria and the Fund\u2019s 2026 Article IV Consultation Report. The Government states that these claims are incorrect and risk misleading the public regarding its financial management.<\/p>\n
According to a statement signed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, “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.”<\/p>\n
He explained that under Sections 80 – 83 and 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), public funds may only be withdrawn and expended in accordance with the Constitution and laws enacted by the National Assembly. Accordingly, Federal Government expenditure is incurred pursuant to duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities enacted by the National Assembly.<\/p>\n
In addition, the Minister said, multi-year capital projects which necessarily span multiple budgets are implemented in accordance with extant laws and approved provisions for capital rollovers where applicable. These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget.<\/p>\n
Mr. Oyedele stated further, “It is inaccurate to suggest that trillions of naira have been secretly spent without legislative approval. Such allegations should identify 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.”<\/p>\n
For the purpose of public education, it is important to distinguish between appropriation, expenditure authorisation, financing, and fiscal reporting.<\/p>\n
Nigeria\u2019s public finance framework contains several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly. These include, among others:<\/p>\n
– *Statutory allocations and contributions* to development commissions and other agencies created by law
\n– *Cost of collection and cost of administration* retained by designated revenue-collecting agencies as expressly provided under relevant legislation
\n– *Capital expenditure* approved in separate budgets for some agencies and the Federal Capital Territory by the National Assembly
\n– *Special interventions* approved by law to address national priorities such as security, infrastructure, disaster response, and other strategic national programmes or emergencies
\n– *Debt service obligations and other statutory transfers* that are authorised under applicable legislation<\/p>\n
He added that the expenditures are neither secret nor illegal. “They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit and accountability mechanisms. Their treatment for reporting purposes may differ from their presentation in the annual Appropriation Act, particularly under international statistical and reporting standards adopted by the Federal Government. Such classification differences should not be misrepresented as evidence of unlawful expenditure.”<\/p>\n
The Minister also described as incorrect the suggestion that the reported amount represents an increase in the budget deficit. He explained that a fiscal deficit is determined by the relationship between total government revenues and total government expenditures, and that the financing channel for a capital project \u2014 whether through annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms, or other lawful arrangements \u2014 does not, by itself, increase the fiscal deficit.<\/p>\n
“Indeed, the IMF\u2019s observation relates primarily to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure. Like many countries, Nigeria continues to strengthen the alignment between budget presentation and international fiscal reporting standards as part of ongoing public financial management reforms,” he said.<\/p>\n
As a matter of fact, Mr. Oyedele said, “His Excellency, President Bola Ahmed Tinubu, GCFR, had formally requested the National Assembly to end the practice of running multiple and overlapping budgets, and rather harmonise into a single, cohesive framework during his presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025.”<\/p>\n
He expressed the Federal Government’s firm *commitment* to prudent fiscal management, transparency and accountability. Recent reforms have significantly strengthened public financial management with ongoing improvements in budget assumptions and credibility, transparent revenue administration, digitalisation of government financial processes, and stronger treasury management. These reforms have been acknowledged by the IMF itself and other multilateral institutions, as well as international credit rating agencies, major media organisations and investors.<\/p>\n
According to him, “Public debate is both welcome and essential in a democratic society. However, it should be based on facts and an accurate understanding of Nigeria\u2019s constitutional and fiscal framework. Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability.”<\/p>\n
The Federal Government will continue to uphold the rule of law, maintain transparency in the management of public resources, and work with the National Assembly, oversight institutions, development partners and the Nigerian people to further strengthen fiscal governance in line with international best practices, the statement concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"
FG Refutes \u20a68tn “shadow budget” Claims, Says All Spending Follows Due Process The Federal Government has refuted recent public commentary alleging that approximately two percent of GDP, amounting to over \u20a68 trillion, was spent outside the approved budget based on references to the IMF Representative in Nigeria and the Fund\u2019s 2026 Article IV Consultation Report. […]<\/p>\n","protected":false},"author":4,"featured_media":151238,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,18,1,20],"tags":[3133,100,3132,3131],"class_list":["post-151233","post","type-post","status-publish","format-standard","has-post-thumbnail","category-finance","category-news","category-others","category-the-nation","tag-due-process","tag-fg","tag-imf-representative","tag-shadow-budget"],"yoast_head":"\n