FG denies spending ₦8tn outside approved budget, dismisses ‘shadow budget’ claims

The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the approved budget, describing reports suggesting the existence of a “shadow budget” as false and misleading.

In a statement issued on Sunday, the Federal Ministry of Finance said recent public commentary alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP), amounting to over ₦8 trillion, was spent outside the budget misrepresented comments attributed to the International Monetary Fund (IMF) Resident Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.

The ministry maintained that the Federal Government does not operate a shadow budget or spend public funds outside the constitutional and statutory framework governing public finance.

It explained that under Sections 80–83 and 162 of the 1999 Constitution, public funds can only be withdrawn and spent in accordance with the Constitution and laws passed by the National Assembly through Appropriation Acts, Supplementary Appropriation Acts and other statutory provisions.

According to the ministry, multi-year capital projects that extend across several budget cycles are implemented under existing laws, including approved capital rollovers where applicable, stressing that such projects should not be interpreted as expenditure outside the budget.

“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.

The ministry further explained that statutory transfers, debt service obligations, development commission allocations, intervention programmes, security spending, infrastructure projects and disaster response initiatives are all authorised by law, disclosed in fiscal reports and subject to legislative oversight, auditing and accountability mechanisms.

It added that the IMF’s observations related mainly to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government expenditure.