Tinubu administration rejects “₦8tn shadow-spend” claim
…Says IMF note was about reporting, not illegality
Omeiza Bilal
The Federal Government yesterday strongly denied media and public claims that it secretly spent about two percent of GDP — roughly ₦8 trillion — outside the approved budget, describing such assertions as “incorrect” and “misleading.”
In a detailed response signed by Finance Minister Taiwo Oyedele on Sunday, the government said the International Monetary Fund’s observations in its 2026 Article IV Consultation related to presentation and reporting issues, not unlawful or unapproved expenditure.
“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 declared, stressing that withdrawals and expenditure of public funds occur only under Sections 80–83 and 162 of the Constitution and laws enacted by the National Assembly.
The rebuttal was prompted by commentary that linked the IMF’s fiscal reporting observations to an alleged ₦8 trillion of off‑budget spending. The government characterised those reports as misreadings of routine classification differences — such as statutory transfers, first‑line charges and legally authorised special interventions — that are part of Nigeria’s fiscal architecture and routinely disclosed in fiscal reports.
“These expenditures are neither secret nor illegal,” the statement read. “They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit and accountability mechanisms.”
It listed statutory allocations, contributions to development commissions, cost‑of‑collection allowances for revenue agencies, separately approved capital budgets for some agencies including the Federal Capital Territory, and debt service obligations as examples of items that sit outside the annual Appropriation Act’s line‑by‑line presentation but remain legally authorised.
The ministry argued that confusion arose from differences between budget presentation and international statistical reporting standards.
“The IMF’s observation relates primarily to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure,” the statement said, adding that Nigeria — like many countries — is still aligning domestic budget presentation with international fiscal reporting norms.
Government sources emphasised that presentation choices do not change fiscal mathematics.
“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,” the release said.
President Bola Ahmed Tinubu had called on the National Assembly to harmonise multiple and overlapping budgets into a single framework when he presented the 2026 Appropriation Bill in December 2025.
“His Excellency…had himself formally requested the National Assembly to end the practice of running multiple and overlapping budgets,” the ministry noted, framing the IMF’s comments as support for ongoing reforms rather than an indictment.
The Federal Government continues to reassure Nigerians that recent reforms have strengthened fiscal governance: improved budget assumptions, better revenue administration, digitalisation of financial processes and stronger treasury management.
“These reforms have been acknowledged by the IMF itself and other multilateral institutions, as well as international credit rating agencies, major media organisations and investors,” the release said.
The ministry urged those making allegations to provide specifics: projects supposedly executed without appropriation, and verifiable evidence supporting their claims.
“To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture,” the statement insisted.
It concluded with a pledge to continue working with the National Assembly, oversight institutions and development partners to strengthen fiscal governance in line with international best practice.
“The Federal Government will continue to uphold the rule of law, maintain transparency in the management of public resources, and work…to further strengthen fiscal governance,” the ministry said.
