The Federal Government has dismissed claims that it spent about two per cent of Nigeria’s Gross Domestic Product (GDP)—estimated at more than ₦8.8 trillion—outside the approved budget, describing the reports as a misrepresentation of comments made by the International Monetary Fund (IMF) Resident Representative in Nigeria and the organisation’s 2026 Article IV Consultation Report.

The government said the claims were inaccurate and capable of misleading the public about the country’s fiscal management.

The controversy followed reported comments by the IMF’s Resident Representative in Nigeria, Christian Ebeke, that the country allegedly failed to record public spending equivalent to about two per cent of its GDP in recent official budgets.

According to the IMF, the omission—linked partly to major government projects executed outside the formal budget framework—made Nigeria’s fiscal deficit appear smaller than its actual financing needs and complicated fiscal transparency.

The international financial institution, however, noted that the Federal Government had begun taking steps to address the issue by revising budget laws and improving fiscal reporting, while urging greater transparency and the timely publication of budget implementation reports.

The IMF’s disclosure drew sharp reactions from opposition figures, including former Vice President Atiku Abubakar and former Anambra State Governor Peter Obi, who called for investigations into the alleged off-budget spending.

In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Dr. Taiwo Oyedele, said the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework governing public finance.

He explained that Sections 80–83 and 162 of the 1999 Constitution (as amended) provide that public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.

According to him, all Federal Government spending is backed by duly enacted Appropriation Acts, Supplementary Appropriation Acts, or other statutory authorisations approved by the National Assembly.

Oyedele added that multi-year capital projects, which span several budget cycles, are implemented in line with existing laws and approved capital rollover provisions where applicable.

“These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget,” he said.

He described as inaccurate suggestions that trillions of naira were secretly spent without legislative approval, arguing that such allegations should identify the specific projects allegedly executed without appropriation or legal authority and provide credible evidence to support the claims.

“To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture.

“For the purpose of public education, it is important to distinguish between appropriation, expenditure authorisation, financing, and fiscal reporting,” he added.

Oyedele said Nigeria’s public finance framework includes several statutory transfers, first-line charges, and intervention mechanisms established by Acts of the National Assembly.

These, he said, include statutory allocations to development commissions and other agencies created by law, cost-of-collection and administrative charges retained by designated revenue-collecting agencies, capital expenditure approved under separate budgets for some agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure, and disaster response, as well as debt-service obligations and other statutory transfers.

The minister maintained that the expenditures are neither secret nor illegal, stressing that they are established by law, disclosed in official fiscal reports, and subject to oversight, audit, and accountability mechanisms.

“Their treatment for reporting purposes may differ from their presentation in the annual Appropriation Act, particularly under international statistical and reporting standards adopted by the Federal Government. Such classification differences should not be misrepresented as evidence of unlawful expenditure,” he said.

Oyedele also rejected claims that the reported amount represented an increase in Nigeria’s 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 said.

He further explained that the IMF’s observation related primarily to the comprehensiveness, timing, and presentation of Nigeria’s fiscal reporting, rather than the legality of government expenditure.

According to him, Nigeria, like many other countries, is working to improve the alignment between its budget presentation and international fiscal reporting standards as part of ongoing public financial management reforms.

Oyedele recalled that President Bola Tinubu, while presenting the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, urged lawmakers to end the practice of operating multiple and overlapping budgets and instead adopt a single, harmonised budget framework.

He said the Federal Government remains committed to prudent fiscal management, transparency, and accountability, adding that recent reforms have strengthened budget credibility, revenue administration, treasury management, and the digitalisation of government financial processes.

According to him, these reforms have been acknowledged by the IMF, other multilateral institutions, international credit-rating agencies, investors, and major global media organisations.

While describing public debate as essential in a democracy, Oyedele urged commentators to base their arguments on facts and a proper 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,” he said.

He added that the Federal Government would continue to uphold the rule of law, ensure transparency in the management of public resources, and work with the National Assembly, oversight institutions, development partners, and Nigerians to further strengthen fiscal governance in line with international best practices.

Reacting to the IMF report, Atiku called on the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the National Assembly, and the Auditor-General of the Federation to investigate the alleged off-budget spending.

The African Democratic Congress (ADC) presidential candidate said the two per cent of GDP translates to about ₦8.8 trillion, describing it as public funds allegedly spent without legislative approval, audit, or public accountability.

According to him, the IMF’s findings suggest that the Federal Government executed multi-trillion-naira projects outside the oversight of the National Assembly, the Auditor-General, and Nigeria’s procurement laws.

Atiku also alleged that the Tinubu administration had maintained what he described as a “shadow treasury” despite imposing painful economic reforms on Nigerians.

He further claimed that an additional ₦800 billion had been deducted from statutory allocations due to states and alleged that the funds were being assembled as a political war chest ahead of the 2027 general elections.

He urged the National Assembly to immediately launch an investigation into the IMF’s findings, called for an independent audit of all alleged off-budget expenditures, and demanded the refund of the ₦800 billion he claimed was deducted from state allocations.

Similarly, Obi expressed concern over the development, describing the IMF’s report as further evidence of what he called “grand corruption” under the current administration.

In a post on X, the former Labour Party presidential candidate argued that the reported ₦8.83 trillion expenditure was not captured in the national budget and was therefore outside legislative oversight.

He noted that the amount represented more than 35 per cent of the 2025 capital budget and exceeded the combined federal allocations to the education and health sectors.

According to him, if properly deployed and accounted for, the funds could have significantly improved public education and healthcare.

Obi said the report pointed to a pattern of financial mismanagement and renewed his call for President Bola Tinubu to resign, arguing that the administration had failed to demonstrate commitment to accountability, public welfare, and national security.

He also urged Nigerians to continue demanding greater transparency in the management of public resources.