The Federal Government has firmly rejected claims by the International Monetary Fund (IMF) that Nigeria spent more than ₦8 trillion outside its approved budgets, describing the allegation as misleading and inaccurate. The controversy emerged after the IMF’s 2026 Article IV Consultation Report suggested that government expenditures equivalent to about two percent of Nigeria’s Gross Domestic Product (GDP) were not fully reflected in recent official budgets, raising concerns about transparency in public finance management.
The IMF Resident Representative in Nigeria, Christian Ebeke, had stated that certain expenditures were not properly reported and recorded, creating what he described as a “statistical discrepancy” that made the country’s fiscal deficit appear smaller than it actually was. His comments sparked reactions from political leaders, including former Vice President Atiku Abubakar, who called on anti-corruption agencies such as the EFCC and ICPC to investigate the alleged omission of public spending from government budgets.
Responding to the growing debate, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stressed that the Federal Government does not operate any form of “shadow budget” or spend public funds outside constitutional and legal provisions. According to him, all federal expenditures are carried out under Appropriation Acts, Supplementary Appropriation Acts, and other statutory approvals granted by the National Assembly. He emphasized that projects spanning multiple years are executed within established legal frameworks and should not be interpreted as unauthorized spending.
Oyedele explained that Nigeria’s public finance system includes several legally recognized expenditures such as statutory transfers, debt servicing obligations, intervention funds, development commission allocations, and emergency spending approved by law. He noted that these expenditures are publicly disclosed through various fiscal reports and remain subject to oversight, auditing, and accountability processes. The minister argued that differences in how such expenditures are presented under international reporting standards should not be mistaken for evidence of hidden or unlawful spending.
The finance minister further clarified that the IMF’s observations were largely related to reporting methods, timing, and classification of expenditures rather than any breach of financial regulations. He maintained that the claims of secret spending have no factual basis and reiterated the government’s commitment to improving transparency and aligning Nigeria’s fiscal reporting with global standards. As discussions continue, the exchange highlights the broader challenge of balancing international reporting requirements with national budgeting practices while maintaining public trust in government finances.
source: This day