Oyedele Denies N8trn ‘Shadow Budget’, Says IMF Comments Misrepresented

Following comments by the International Monetary Fund (IMF) that discrepancies amounting to about two per cent of Nigeria’s Gross Domestic Product (GDP) exist between reported and actual budget deficits, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said there are no secret expenditures or shadow budgets as insinuated.

In a statement made available to Leadership on Sunday, Oyedele said claims that the Federal Government spent over N8 trillion outside the approved budget misrepresented both the IMF’s position and Nigeria’s fiscal framework. The minister stressed that the Federal Government does not operate a “shadow budget” or spend public funds outside constitutional and statutory provisions.

“The Federal Government has noted recent public commentary alleging that approximately two per cent of GDP amounting to over N8 trillion was spent outside the approved budget based on references to the IMF Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report. These claims are incorrect and risk misleading the public regarding the government’s financial management,” he said.

According to him, “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.”

Oyedele explained that under Sections 80 to 83 and 162 of the 1999 Constitution (as amended), public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.

He noted that government spending is undertaken through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the National Assembly, while multi-year capital projects are implemented under existing laws that permit capital rollovers.

“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” the minister stated.

Oyedele further clarified that several categories of government expenditure, including statutory transfers, first-line charges, debt service obligations, interventions for national security and infrastructure, and allocations to agencies established by law, are authorised under various Acts of the National Assembly.

“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit and accountability mechanisms,” he said.

The minister added that differences between Nigeria’s budget presentation and international fiscal reporting standards should not be interpreted as evidence of unlawful spending.

He also rejected suggestions that the reported amount translated into a higher fiscal deficit. “It is equally incorrect to suggest that the reported amount represents an increase in budget deficit. A fiscal deficit is determined by the relationship between total government revenues and total government expenditures.

“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.

According to Oyedele, the IMF’s observations relate mainly to “the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure.”

He noted that the Tinubu administration was already taking steps to harmonise Nigeria’s budgeting process, recalling that President Bola Tinubu had requested the National Assembly during the presentation of the 2026 Appropriation Bill to end the practice of multiple and overlapping budgets in favour of a single, unified budget framework.

The minister maintained that the administration remained committed to prudent fiscal management, transparency and accountability, adding that reforms in revenue administration, treasury management, budget credibility and digitalisation of government financial processes had received recognition from the IMF, other multilateral institutions, international credit rating agencies and investors.

“Public debate is both welcome and essential in a democratic society. However, it should be based on facts and an accurate 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,” Oyedele added.

He reaffirmed the Federal Government’s commitment to transparency in the management of public resources and pledged continued collaboration with the National Assembly, oversight institutions, development partners and Nigerians to strengthen fiscal governance in line with international best practices.