FG Doesn’t Operate ‘Shadow Budget’, Says Oyedele

The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the approved budget, insisting that Nigeria does not operate a “shadow budget” and that all public expenditures are made within the provisions of the Constitution and relevant laws.

In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, described recent reports suggesting that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the national budget as misleading and a misrepresentation of findings contained in the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.

Oyedele said the allegations created a false impression that the Federal Government had secretly spent trillions of naira without legislative approval, stressing that such claims were not supported by facts.
“The Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” he stated.

The minister explained that Sections 80 to 83 and 162 of the 1999 Constitution (as amended) require all public funds to be withdrawn and spent only as authorised by the National Assembly through Appropriation Acts, Supplementary Appropriation Acts and other relevant legislation.

He noted that some government expenditures, including statutory transfers, debt service obligations, first-line charges, capital projects implemented over several years, and emergency interventions approved by law, may not appear in the annual Appropriation Act in the same format but remain lawful and fully disclosed in official fiscal reports.

According to him, differences in fiscal reporting standards should not be interpreted as evidence of illegal spending or an increase in Nigeria’s budget deficit.
Oyedele further clarified that the IMF’s observations focused on improving the comprehensiveness and presentation of fiscal reporting rather than questioning the legality of government expenditure.

He recalled that President Bola Ahmed Tinubu had already urged the National Assembly during the presentation of the 2026 Appropriation Bill to harmonise multiple and overlapping budgets into a single fiscal framework.

The minister reaffirmed the Federal Government’s commitment to prudent fiscal management, transparency and accountability, adding that ongoing reforms in treasury management, revenue administration, budget credibility and digitalisation had earned recognition from the IMF, other multilateral institutions, international credit rating agencies and investors.

He urged Nigerians to base public discourse on verified facts, stressing that technical fiscal observations should not be distorted into allegations of unlawful expenditure.