…says no public funds expended outside constitutional framework
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, has responded to allegations by former Vice President Atiku Abubakar that the Federal Government spent two per cent of the country’s Gross Domestic Product (GDP) outside the approved budget.
In a statement signed by the minister, Oyedele said the government had noted recent public commentary alleging that about two per cent of GDP—estimated at over ₦8 trillion—was spent outside the approved budget, based on references to the IMF Resident Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
He described the claims as false and capable of misleading the public about the government’s fiscal management.
“These claims are incorrect and risk misleading the public regarding the government’s financial management.
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“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,” the statement said.
Oyedele explained that under Sections 80–83 and 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
According to him, federal government expenditure is incurred pursuant to duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations approved by the National Assembly.
He added that multi-year capital projects, which naturally span several budget cycles, are implemented in line with extant laws and approved capital rollover provisions where applicable.
“These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget,” he said.
The minister maintained that it was inaccurate to suggest that trillions of naira had 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. Assertions of this magnitude must be backed by verifiable facts rather than conjecture,” he stated.
Oyedele said it was important to distinguish between appropriation, expenditure authorisation, financing and fiscal reporting.
He noted that Nigeria’s public finance framework provides for statutory transfers, first-line charges and intervention mechanisms established through Acts of the National Assembly.
According to him, these include statutory allocations to development commissions and other agencies established by law, cost of collection and administration retained by designated revenue-collecting agencies, capital expenditure approved in separate budgets for certain agencies and the Federal Capital Territory, as well as special interventions for security, infrastructure, disaster response and other national priorities.
He added that debt servicing obligations and other statutory transfers are also authorised under existing legislation.
“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports, and subject to 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,” he said.
Oyedele also dismissed claims that the reported amount represented an increase in the budget deficit.
“A fiscal deficit is determined by the relationship between total government revenue and total government expenditure.
“Whether a capital project is financed through annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms or other lawful financing arrangements does not, by itself, increase the fiscal deficit,” he explained.
The minister further clarified that the IMF’s observation primarily concerned the comprehensiveness, timing and presentation of fiscal reporting, rather than the legality of government expenditure.
He said Nigeria, like many other countries, was working to align its budget presentation with international fiscal reporting standards as part of ongoing public financial management reforms.
Oyedele recalled that President Bola Tinubu had requested the National Assembly to discontinue the practice of operating multiple and overlapping budgets and instead adopt a single, harmonised framework during the presentation of the 2026 Appropriation Bill on December 19, 2025.
He reaffirmed the Federal Government’s commitment to prudent fiscal management, transparency and accountability, noting that recent reforms had strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
According to him, these reforms have been acknowledged by the IMF, other multilateral institutions, international credit rating agencies, investors and major media organisations.
While describing public debate as essential in a democracy, Oyedele urged commentators to base their arguments on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.
“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability.
“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,” he added.
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