FG Dismisses ₦8tn 'Shadow Budget' Claims, Defends Fiscal Transparency

 

By Abdulahi Musa 

The Federal Government has dismissed claims that more than ₦8 trillion, estimated at about two percent of Nigeria's Gross Domestic Product (GDP), was spent outside the approved budget, describing the allegation as false and a misrepresentation of the International Monetary Fund's (IMF) 2026 Article IV Consultation Report.

In a press release issued on Saturday by the Federal Ministry of Finance, the government stated that it does not operate a "shadow budget" or spend public funds outside the constitutional and legal framework governing public finance in Nigeria.

The ministry explained that all federal expenditures are carried out in accordance with Sections 80–83 and 162 of the Constitution and are backed by Appropriation Acts, Supplementary Appropriation Acts, or other statutory approvals passed by the National Assembly.

It further clarified that multi-year capital projects, statutory transfers, first-line charges, debt service obligations, intervention programmes, and allocations to agencies established by law are all legally authorised expenditures. According to the government, while some of these transactions may be reported differently under international fiscal reporting standards, they should not be interpreted as unlawful or unapproved spending.

The ministry stressed that allegations of secret expenditures amounting to trillions of naira lacked credible evidence, noting that such claims should identify specific projects or programmes allegedly executed without legislative approval.

Responding to suggestions that the reported amount represented an increase in Nigeria's fiscal deficit, the government explained that a fiscal deficit is determined by the relationship between total government revenue and expenditure, not by the financing method or classification of approved spending.

The statement also clarified that the IMF's observations focused on improving the comprehensiveness and presentation of Nigeria's fiscal reporting rather than questioning the legality of government expenditures.

The ministry recalled that President had, during the presentation of the 2026 Appropriation Bill to the National Assembly in December 2025, called for the harmonisation of multiple and overlapping budgets into a single, unified budget framework.

Reaffirming its commitment to prudent fiscal management, transparency and accountability, the Federal Government highlighted ongoing reforms aimed at improving budget credibility, strengthening treasury management, enhancing digital financial processes and aligning Nigeria's fiscal reporting with international best practices.

The statement concluded by urging Nigerians to base public discussions on verified facts, maintaining that technical observations contained in international reports should not be misconstrued as evidence of unlawful government spending.

The statement was signed by , Minister of Finance and Coordinating Minister of the Economy.