The Federal Government has strongly refuted claims that it spent approximately 2% of the nation’s Gross Domestic Product (GDP), amounting to over N8 trillion, outside the approved national budget.
In a statement released on Sunday, the Federal Ministry of Finance described the allegations as incorrect and capable of misleading the public regarding the country’s financial management.
The ministry clarified that the federal government does not operate any “shadow budget” or expend public funds outside the statutory framework established for public finance.
The reaction follows recent public commentaries and reports referencing the International Monetary Fund (IMF) 2026 Article IV Consultation Report, which alleged that trillions of naira were secretly spent without legislative approval.
The ministry maintained that all federal expenditures strictly adhere to Sections 80 to 83 and Section 162 of the 1999 Constitution of the Federal Republic of Nigeria (as amended).
It stated that public funds are only withdrawn in accordance with Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities enacted by the National Assembly.
Addressing the implementation of multi-year capital projects, the ministry explained that such projects naturally span across multiple fiscal years and are handled using approved capital rollover provisions.
It stressed that these are standard features of public financial management and should not be misconstrued as extrabudgetary spending.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the statement read.
“Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim.”
For public education, the ministry urged commentators to distinguish between appropriation, expenditure authorization, financing, and fiscal reporting. It noted that Nigeria’s public finance framework contains several legal instruments established by Acts of the National Assembly, such as statutory transfers, first-line charges, and dedicated intervention mechanisms.
According to the ministry, these statutory frameworks legally cover cost of collection retained by revenue-generating agencies, debt service obligations, special interventions for national emergencies, and separate capital budgets approved for specific agencies and the Federal Capital Territory.