FG Denies Operating ‘Shadow Budget,’ Says All Spending Follows Constitutional Process

FG Denies Operating ‘Shadow Budget,’ Says All Spending Follows Constitutional Process

The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the 2026 approved budget, describing reports of a so-called “shadow budget” as inaccurate and misleading.

In a statement issued by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the government said all public expenditure is carried out strictly within the constitutional and legal framework governing public finance in Nigeria.

According to the statement, funds are only withdrawn and spent in line with the provisions of the 1999 Constitution, Appropriation Acts, Supplementary Appropriation Acts and other laws enacted by the National Assembly.

The government explained that multi-year capital projects, statutory transfers, debt service obligations, and special interventions for security, infrastructure and emergency response are all authorised by law and should not be interpreted as expenditures outside the national budget.

It stressed that there is no evidence to support allegations that trillions of naira were secretly spent without legislative approval, adding that such claims should be backed by verifiable facts rather than speculation.

The statement further clarified that differences in the presentation of fiscal reports under international reporting standards should not be mistaken for unlawful spending, noting that statutory transfers and other legally approved expenditures may be reported differently from the annual Appropriation Act.

The Federal Government also rejected suggestions that the reported figure represents an increase in Nigeria’s fiscal deficit, explaining that the deficit is determined by the relationship between total government revenue and expenditure, regardless of the financing mechanism used for approved projects.

Responding to references made to the International Monetary Fund’s 2026 Article IV Consultation Report, the government said the IMF’s observations focused on improving the comprehensiveness and presentation of fiscal reporting rather than questioning the legality of government spending.

The statement recalled that President Bola Ahmed Tinubu had already urged the National Assembly to harmonise multiple and overlapping budgets into a single framework during the presentation of the 2026 Appropriation Bill in December 2025.

Reaffirming its commitment to transparency and accountability, the Federal Government said it would continue implementing reforms aimed at strengthening public financial management, improving budget credibility, enhancing revenue administration, digitising financial processes and ensuring prudent treasury management.

The government urged Nigerians to rely on verified information when discussing public finance, stressing that informed public debate should be based on facts and a proper understanding of the country’s constitutional and fiscal framework.

FG Denies Operating ‘Shadow Budget,’ Says All Spending Follows Constitutional Process