By Eshioromeh Sebastian
The Federal Government has dismissed as what it described as “incorrect and misleading” allegations by opposition that the administration spent approximately N8.8 trillion outside the approved budget, clarifying that all public expenditures are conducted within the constitutional framework and subject to legislative oversight.
In a statement issued on Sunday, Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele responded to recent public commentary citing the International Monetary Fund’s 2026 Article IV Consultation Report, which opposition leaders have claimed exposed massive off-budget spending by the Tinubu administration.
Former Vice President Atiku Abubakar had on Saturday described the alleged unrecorded expenditure as “the most consequential act of fiscal impunity in Nigeria’s recent democratic history” and demanded an immediate investigation by the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission .
Atiku claimed the IMF report revealed that public expenditures equivalent to about two per cent of Nigeria’s Gross Domestic Product, amounting to approximately N8.8 trillion,were not captured in recent official budgets.
He alleged that the Tinubu administration was operating “a parallel fiscal universe” and accused the government of assembling a “political war chest” ahead of the 2027 general elections.
Similarly, Nigeria Democratic Congress presidential candidate Peter Obi renewed his call for President Bola Tinubu to resign, describing the development as evidence of “grand corruption” under the current administration .
Obi argued that the alleged N8.83 trillion in unrecorded expenditure exceeded the combined federal allocations for education (N3.52 trillion) and health (N2.38 trillion) .
“It is more than the entire combined budget for education and health,” Obi stated on his X handle. “If such an amount is properly used and accounted for, it could transform Nigeria’s public health and education sectors”.
In its rejoinder, the Finance Ministry insisted that “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Oyedele explained that under Sections 80 to 83 and 162 of the 1999 Constitution, public funds may only be withdrawn and expended in accordance with duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities enacted by the National Assembly.
The Minister clarified that multi-year capital projects which necessarily span multiple budgets are implemented in accordance with extant laws and approved provisions for capital rollovers, describing these as “recognised features of public financial management” that should not be misconstrued as expenditures outside the budget .
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the statement read. “Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the
The Ministry further explained that the IMF’s observation relates primarily to “the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure”. It noted that classification differences for reporting purposes under international statistical standards “should not be misrepresented as evidence of unlawful expenditure.”
The statement also clarified that whether a capital project is financed through annual appropriations, supplementary appropriations, statutory transfers, or other lawful financing arrangements does not, by itself, increase the fiscal deficit .
Oyedele noted that President Bola Tinubu had formally requested the National Assembly to end the practice of running multiple and overlapping budgets and harmonise into a single cohesive framework during his presentation of the 2026 Appropriation Bill on December 19, 2025 .
“Public debate is both welcome and essential in a democratic society,” the statement concluded. “However, it should be based on facts and an accurate understanding of Nigeria’s constitutional and fiscal framework” .
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