SUNTV Global Channel | NEWS
July 5, 2026
The Federal Government has denied allegations that it spent more than ₦8.8 trillion outside Nigeria’s approved budget, insisting that reports suggesting the existence of a “shadow budget” are false and based on a misinterpretation of the International Monetary Fund (IMF) 2026 Article IV Consultation Report.
In a statement issued on Sunday through the Federal Ministry of Finance, the government described the claims as misleading, stressing that all public spending is carried out within the framework of the Nigerian Constitution, the Appropriation Acts, Supplementary Appropriation Acts, and other laws approved by the National Assembly.
The ministry maintained that the Federal Government does not spend public funds outside legally approved channels and challenged those making the allegations to provide credible evidence of any project executed without legislative approval.
According to the statement, some capital projects span multiple budget cycles and are financed through legally approved capital rollovers, adding that such arrangements should not be mistaken for off-budget spending.
The government also clarified that statutory transfers, debt servicing, security interventions, infrastructure projects, development commissions, and disaster response programmes are all lawful expenditures established by law and are subject to public disclosure, legislative oversight, and audit.
Responding to concerns over the country’s fiscal deficit, the ministry said the reported figure does not represent an increase in Nigeria’s budget deficit, explaining that the IMF’s observations focused on the presentation and reporting of fiscal data rather than the legality of government spending.
The Federal Government further noted that President Bola Tinubu had already initiated reforms aimed at streamlining Nigeria’s budgeting process by seeking an end to the practice of operating multiple overlapping budgets.
The ministry reaffirmed the administration’s commitment to transparency, accountability, and prudent fiscal management while urging Nigerians and public commentators to rely on verified facts when discussing the country’s finances.
The clarification follows recent public debate after the IMF reported that about 2 percent of Nigeria’s Gross Domestic Product (GDP)—estimated at approximately ₦8.83 trillion—was not reflected in the country’s formal budget and fiscal implementation reports. The disclosure sparked criticism from opposition figures, including former Vice President Atiku Abubakar, who called for an investigation into the matter.
The Federal Government, however, insists that the IMF report has been misunderstood and maintains that all public expenditures remain within Nigeria’s legal and constitutional framework.
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