Post by Ibadan Watch (@Ibadanwatch)

Finance Ministry Says Claims Of N8 trn Shadow Spending Misrepresent IMF Fiscal Reporting Findings.

The Federal Ministry of Finance has dismissed claims that the Federal Government spent more than N8 trillion outside the approved budget, describing the allegations as a misrepresentation of the International Monetary Fund’s 2026 Article IV Consultation Report.

In a statement issued on Saturday, the ministry said public commentary suggesting that approximately two per cent of Nigeria’s Gross Domestic Product was spent outside the budgetary framework was inaccurate and misleading.

“The Federal Government has noted recent public commentary alleging that approximately two percent of GDP amounting to over ₦8 trillion was spent outside the approved budget based on references to the IMF Representative in Nigeria & the Fund’s 2026 Article IV Consultation Report. These claims are incorrect and risk misleading the public regarding the government’s financial management.”

The ministry insisted that the Federal Government does not operate any unofficial spending programme outside constitutional provisions.

“For the avoidance of doubt, the Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional & statutory framework established for public finance.”

According to the statement, all public spending is undertaken in line with the provisions of the Constitution, Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the National Assembly.

The ministry explained that multi-year capital projects often span several budget cycles, involving approved rollovers, which are standard in public financial management & should not be mistaken as spending outside legislative approval.

It refuted claims that trillions of naira were secretly spent & challenged those making such allegations to identify projects without proper approval & provide evidence.

The ministry emphasized that Nigeria’s fiscal framework supports statutory transfers, debt service, & lawful expenditure programs, which are publicly disclosed & audited. It also noted that differences in fiscal reporting do not imply unlawful spending.

The ministry dismissed claims that the reported amount increased the country’s fiscal deficit, clarifying deficits depend on revenue & expenditure, not project financing.

It noted the IMF’s concerns focused on fiscal reporting’s comprehensiveness, timing, & presentation, not legality. President Tinubu had called for unifying overlapping budgets into one framework during the 2026 Appropriation Bill presentation in December 2025.

The ministry said reforms in revenue, treasury management, & digitalisation have boosted transparency & accountability. While public debate is vital, fiscal discussions should be based on facts & Nigeria’s constitutional & financial context. Mischaracterising technical observations as unlawful expenditure doesn't promote informed discourse or accountability.

0 likes · 0 comments · 0 shares