The Federal Government has dismissed claims that it spent over N8 trillion outside the approved budget, describing the allegation as false and a misrepresentation of the 2026 Article IV Consultation Report by the International Monetary Fund (IMF).
Government’s denial came on a day presidential candidate of Nigeria Democratic Congress (NDC) for the 2027 polls, Peter Obi, asked President Bola Tinubu to resign, following the scale of corruption being exposed daily under his administration.
Speaking in Lagos, IMF Resident Representative in Nigeria, Christian Ebeke, had said: “So far, we think there are about two per cent of GDP of expenditure that were not reported, that should be reported and should be recorded, so that this statistical discrepancy will disappear.”
But the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who made the rebuttal in a statement yesterday, said the federal government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework.
He said: “The federal government has noted recent public commentary alleging that approximately two per cent of GDP amounting to over ¦ 8 trillion was spent outside the approved budget based on references to the IMF Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
“These claims are incorrect and risk misleading the public regarding the government’s financial management.”
Oyedele explained that under Sections 80 to 83 and 162 of the 1999 Constitution, public funds could only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
He said federal government spending was undertaken through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the National Assembly.
The minister added that multi-year capital projects implemented across different budget cycles and approved capital rollovers were recognised components of public financial management and should not be misconstrued as spending outside the budget.
“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,” he said.
Oyedele also clarified that statutory transfers, debt service obligations, first-line charges and intervention mechanisms established by Acts of the National Assembly formed part of Nigeria’s public finance framework.
He listed statutory allocations to development commissions, revenue collection costs retained by designated agencies, separately approved capital budgets for some agencies and the Federal Capital Territory, security and infrastructure interventions, disaster response programmes, and debt servicing obligations among expenditures authorised by law.
“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit and accountability mechanisms,” he stated.
The minister, who also rejected suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit, said: “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 the IMF’s observations focused on improving the comprehensiveness, timing and presentation of fiscal reporting, rather than questioning the legality of government expenditure.
According to him, Tinubu had already asked the National Assembly during the presentation of the 2026 Appropriation Bill on December 19, 2025, to end the practice of operating multiple and overlapping budgets and instead adopt a single, harmonised budget framework.
Oyedele said the federal government remained committed to prudent fiscal management, transparency and accountability, noting that recent reforms had strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
“The federal government will continue to uphold the rule of law, maintain transparency in the management of public resources, and work with the National Assembly, oversight institutions, development partners and the Nigerian people to further strengthen fiscal governance in line with international best practices,” he said.
Oyedele urged members of the public to base debates on accurate facts and a proper understanding of Nigeria’s constitutional and fiscal framework, warning that misrepresenting technical observations as evidence of unlawful expenditure undermined informed public discourse.
The issue has, however, drawn sharp condemnations from Nigerians, including the presidential candidate of National Democratic Congress, NDC, in 2027 elections, Mr Peter Obi.
Also reacting to the development yesterday, the presidential candidate of Nigeria Democratic Congress, NDC, Peter Obi, asked the President to resign, saying the scale of corruption being exposed daily under the current administration was enough reason for him to quit.
In a post on his X handle, Obi said: “The recent report from the IMF consultation further raises concerns about the scale of grand corruption under the Tinubu government. The IMF now reveals that about N8.83 trillion in expenditure undertaken in 2025 is not reflected in the budget.
’This expenditure is not budgeted and is, therefore, outside legislative oversight or administrative scrutiny.”
Giving a breakdown of the figure, Obi added: “N8.83 trillion is approximately 2% of our GDP and over 35% of Nigeria’s 2025 N23.96 trillion capital project budget. In fact, the amount exceeds the actual capital funding released for 2025. It is more than the total combined budget for education (N3.52 trillion) and health (N2.38 trillion).
“If such an amount was properly utilised and accounted for, it could transform Nigeria’s health and education sectors. It could also foster the creation of hundreds of small industries, creating jobs for thousands of graduates and laying a solid foundation for economic development. But we cannot account for it.
“This is not an isolated incident; it is part of a pattern of grand corruption that characterises this administration.
“We have much to worry about concerning the state of corruption under President Tinubu. The type of corruption that involves blatant disregard for fundamental rules of public finance management poses a severe threat to national security and the stability of Nigeria
“The capture of the Nigerian state and the plunder of its resources undermine the foundation of state stability, deepening poverty, and risking failure.
“This recent revelation demonstrates that the APC government is immensely corrupt, inept, and insensitive. With increasing poverty and an urgent need for major improvements in social and physical infrastructure, a responsible and responsive government would ensure that N8.83 trillion is wisely used to address these issues. But this is not the case with the Tinubu administration.
“A few days ago, I called on President Tinubu to resign from office due to incompetence, lack of capacity, lack of compassion, and failure to deliver on his campaign promises.
‘’Some people thought this call was excessive, but with the daily revelations of widespread corruption in this administration and its total lack of commitment to the welfare and security of Nigerian citizens, the only reasonable action is for President Tinubu to resign.”
“The breakdown of basic due process under Tinubu and the continuous evidence of rampant looting of Nigerian finances highlight the urgent need for greater accountability. It is now time for Nigerian citizens to step up within the law and hold this administration responsible. A new Nigeria is possible.”
