Abuja – The Federal Government has dismissed claims that it spent about two per cent of Nigeria’s Gross Domestic Product (GDP) outside the approved budget, insisting that all public expenditures are backed by constitutional and statutory provisions.
The clarification follows reports based on remarks by the International Monetary Fund (IMF) Resident Representative in Nigeria, Christian Ebeke, who stated that approximately two per cent of GDP in public expenditure had not been reflected in recent official budgets, creating a statistical gap between Nigeria’s reported fiscal deficit and its actual financing needs.
Speaking at a business forum in Lagos, Ebeke said the discrepancy resulted from public spending, particularly on major capital projects, that was not captured in budget documents or implementation reports. He noted that the omission distorted assessments of Nigeria’s fiscal position and public investment levels.
“So far we think that 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,” Ebeke said.
He added that incomplete reporting could complicate coordination between fiscal and monetary authorities, while urging greater transparency in public finance. According to him, Nigerian authorities have begun revising budget laws to incorporate previously unrecorded expenditures, although updated implementation reports are still required.
Responding to the reports, the Federal Government described suggestions that more than ₦8 trillion had been spent through a “shadow budget” as inaccurate and misleading.
In a statement signed by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the government maintained that it does not operate any expenditure framework outside the Constitution or laws enacted by the National Assembly.
The statement explained that under Sections 80 to 83 and 162 of the 1999 Constitution (as amended), public funds can only be withdrawn and spent in accordance with duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities.
It further noted that multi-year capital projects are implemented through approved budgetary provisions and capital rollovers where necessary, stressing that such arrangements are recognised features of public financial management and should not be interpreted as off-budget spending.
The government also clarified that several categories of expenditure—including statutory transfers, debt service obligations, intervention funds, security-related spending and allocations to development commissions—are authorised by law and subject to oversight, even if they are presented differently from annual appropriation budgets.
According to the statement, the IMF’s observation relates mainly to the comprehensiveness and presentation of fiscal reporting rather than the legality of government expenditure.
The Federal Government added that President Bola Ahmed Tinubu had already requested the National Assembly to harmonise multiple and overlapping budgets into a single, cohesive framework during the presentation of the 2026 Appropriation Bill.
Reaffirming its commitment toi transparency, accountability and prudent fiscal management, the government said ongoing reforms—including improved budget credibility, digitalisation of financial processes and enhanced treasury management—have received recognition from the IMF, other multilateral institutions, international credit rating agencies and investors.
The IMF, in its latest Article IV Consultation Report, commended Nigeria’s ongoing economic reforms for improving macroeconomic stability and boosting investor confidence, while cautioning that the benefits of the reforms have yet to be widely felt by millions of Nigerians and remain vulnerable to external shocks.
