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The Federal Government has responded to allegations that more than ₦8 trillion was spent outside the 2025 national budget, insisting that every government expenditure was carried out in line with constitutional provisions and existing financial regulations.

The clarification was contained in a statement released on Sunday by the Minister of Finance, Taiwo Oyedele.

According to the ministry, reports suggesting that roughly two percent of Nigeria’s Gross Domestic Product (GDP)—estimated at over ₦8 trillion—was spent outside the approved budget stemmed from a misinterpretation of the International Monetary Fund (IMF) 2026 Article IV Consultation Report.

The ministry stressed that the Federal Government does not maintain a parallel or undisclosed budget through which public funds are spent without legislative approval.

It explained that the provisions of Sections 80 to 83 and 162 of the 1999 Constitution require that all public funds be withdrawn and utilised strictly in accordance with the Constitution and laws enacted by the National Assembly.

According to the statement, government spending is authorised through duly approved Appropriation Acts, Supplementary Appropriation Acts, and other statutory approvals recognised by law.

The ministry further noted that several capital projects extend across multiple years and are executed under existing legal provisions, including approved capital rollovers where necessary.

It argued that such projects should not be mistaken for expenditures made outside the national budget.

The government also dismissed allegations of secret or hidden spending, insisting that those making such claims should provide concrete evidence by identifying projects allegedly executed without legal appropriation or statutory approval.

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

The ministry also explained that Nigeria’s public finance structure accommodates statutory transfers, first-line charges, and intervention programmes established through Acts of the National Assembly.

It listed these to include statutory allocations to development commissions and agencies, revenue collection costs retained by designated institutions, separate capital budgets for certain agencies and the Federal Capital Territory, targeted interventions for national priorities such as security and infrastructure, as well as debt servicing obligations.

According to the ministry, these expenditures are lawful, publicly disclosed, and subject to oversight, auditing, and accountability procedures, although international reporting standards may cause them to appear differently from the annual Appropriation Act.

The Federal Government also rejected suggestions that the reported ₦8 trillion represented an increase in the nation’s fiscal deficit.

It explained that fiscal deficits are calculated based on the difference between total government revenue and expenditure, rather than the financing arrangements adopted for approved projects.

The ministry maintained that the IMF’s observations were directed mainly at the presentation, timing, and comprehensiveness of fiscal reporting rather than questioning the legality of government spending.

It added that President Bola Tinubu had already requested the National Assembly to harmonise multiple and overlapping budgets into a unified framework while presenting the 2026 Appropriation Bill on December 19, 2025.

The statement further stated that the current administration remains committed to fiscal discipline, transparency, and accountability through ongoing reforms focused on budget credibility, revenue generation, digitalisation of government financial operations, and improved treasury management.

The ministry concluded by urging Nigerians to rely on verified information and a proper understanding of the country’s fiscal framework, cautioning against interpreting technical observations as proof of illegal or unauthorised government expenditure.

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