FG denies spending ₦8trn outside budget, says IMF comments misrepresented

Atiku demands probe into IMF’s ₦8.83tn off-budget spending report

.Obi asks Tinubu to resign, cites IMF off-budget spending claim

Emeka Agu Jnr with agency reports

The Federal Government has dismissed claims that it spent about two per cent of Nigeria’s Gross Domestic Product (GDP)—estimated at over ₦8 trillion—outside the approved budget, describing the reports as a misrepresentation of comments made by the International Monetary Fund (IMF) Resident Representative in Nigeria and the organisation’s 2026 Article IV Consultation Report.

Recall that the resident representative of the IMF in Nigeria, Christian Ebeke, on Wednesday, said the off-budget spending is worth 2 percent of gross domestic product (GDP), and the discrepancy means Nigeria’s fiscal deficit appears smaller than the government’s actual borrowing needs.

However, the Federal Government said the claims were inaccurate and could mislead the public about the country’s fiscal management.

In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework governing public finance.

He explained that sections 80–83 and 162 of the 1999 Constitution (as amended) provide that public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.

According to him, all Federal Government spending is backed by duly enacted Appropriation Acts, Supplementary Appropriation Acts or other statutory authorisations approved by the National Assembly.

Oyedele added that multi-year capital projects, which span several budget cycles, are implemented in line with existing laws and approved capital rollover provisions where applicable.

“These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget,” he said.

He described as inaccurate suggestions that trillions of naira were secretly spent without legislative approval, arguing that such allegations should identify the specific projects allegedly executed without appropriation or legal authority and provide credible evidence to support the claims.

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

 “For the purpose of public education, it is important to distinguish between appropriation, expenditure authorisation, financing and fiscal reporting,” he added.

Oyedele said Nigeria’s public finance framework includes several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.

These, he said, include statutory allocations to development commissions and other agencies created by law, cost of collection and administration retained by designated revenue-collecting agencies, capital expenditure approved under separate budgets for some agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure and disaster response, as well as debt service obligations and other statutory transfers.

The minister maintained that the expenditures are neither secret nor illegal, stressing that they are established by law, disclosed in official fiscal reports and subject to oversight, audit and accountability mechanisms.

 “Their treatment for reporting purposes may differ from their presentation in the annual Appropriation Act, particularly under international statistical and reporting standards adopted by the Federal Government. Such classification differences should not be misrepresented as evidence of unlawful expenditure,” he said.

Oyedele also rejected claims that the reported amount represented an increase in Nigeria’s 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,” he said.

He further explained that the IMF’s observation related primarily to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government expenditure.

According to him, Nigeria, like many other countries, is working to improve the alignment between its budget presentation and international fiscal reporting standards as part of ongoing public financial management reforms.

Oyedele recalled that President Bola Tinubu had, during the presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, urged lawmakers to end the practice of operating multiple and overlapping budgets and instead adopt a single, harmonised budget framework.

He said the Federal Government remains committed to prudent fiscal management, transparency and accountability, adding that recent reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.

According to him, these reforms have been acknowledged by the IMF, other multilateral institutions, international credit rating agencies, investors and major global media organisations.

While describing public debate as essential in a democracy, Oyedele urged commentators to base their arguments on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.

“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability,” he said.

He added that the Federal Government would continue to uphold the rule of law, ensure transparency in the management of public resources and work with the National Assembly, oversight institutions, development partners and Nigerians to further strengthen fiscal governance in line with international best practices.

Meanwhile, former Vice President Atiku Abubakar has demanded accountability from the Federal Government over the reported disclosure by the International Monetary Fund (IMF) that Nigeria failed to report public spending equivalent to about two per cent of its Gross Domestic Product (GDP) in recent official budgets.

The IMF’s Resident Representative in Nigeria, Christian Ebeke, was reported to have said that the unreported expenditure, linked partly to major government projects executed outside the formal budget framework, made Nigeria’s fiscal deficit appear lower than its actual financing needs and raised concerns over fiscal transparency.

Reacting to the report, Atiku called on the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the National Assembly and the Auditor-General of the Federation to investigate the alleged off-budget spending.

The African Democratic Congress (ADC) presidential candidate said that the two per cent of GDP translates to about ₦8.8 trillion, describing it as public funds allegedly spent without legislative approval, audit or public accountability.

According to him, the IMF’s findings suggest that the Federal Government executed multi-trillion-naira projects outside the oversight of the National Assembly, the Auditor-General and Nigeria’s procurement laws.

Atiku also alleged that the Tinubu administration had maintained what he described as a “shadow treasury” despite imposing painful economic reforms on Nigerians.

He further claimed that an additional ₦800 billion had been deducted from statutory allocations due to states and alleged that the funds were being assembled as a political war chest ahead of the 2027 general elections.

He urged the National Assembly to immediately launch an investigation into the IMF’s findings, called for an independent audit of all alleged off-budget expenditures, and demanded the refund of the ₦800 billion he claimed was deducted from state allocations.

On his part, the presidential candidate of the Nigeria Democratic Congress (NDC), Mr. Peter Obi,, has reiterated his call for President Bola Tinubu to resign following a claim by the International Monetary Fund (IMF) that Nigeria failed to record some public spending in various budgets.

In a statement on Sunday, Obi said the claim raises concerns about the scale of grand corruption under President Bola Tinubu’s administration.

 “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 not under legislative oversight or administrative scrutiny. This is horrible,” he said.

Obi said the amount is over 35 percent of Nigeria’s 2025 N23.96 trillion capital project budget, and more than the actual released capital funding for 2025.

“It is more than the entire combined budget for education (N3.52 trillion) and health (N2.38 trillion),” the former governor of Anambra state said.

 “If such an amount is properly used and accounted for, it could transform Nigeria’s public health and education sectors. It could create hundreds of cottage industries that can provide jobs for thousands of graduates and build a solid foundation for economic development. But we cannot account for it. This is not an isolated incident. This is a pattern of grand corruption that has become part of this administration.

“We have a lot to worry about regarding the state of corruption under President Tinubu. The sort of corruption that is ingrained in total disregard of elementary rules of public finance management poses a grave danger to national security and the stability of the Nigerian state.

“The capture of the Nigerian state and the plunder of its resources are actions that undermine the basis of state stability and deepen poverty and state failure.”

Obi alleged that the revelation by the IMF shows the All Progressive Congress (APC) government, which is the ruling party, is grossly corrupt, incompetent, and insensitive.

“With the growing poverty and the urgent need for significant upgrades to social and physical infrastructure, a responsible and responsive government would ensure that N8.83 trillion is prudently utilised to address these gaps. But not the Tinubu administration,” he said.

Addressing his previous demand that Tinubu resign, the former governor said daily revelations of pervasive corruption in the current administration and its total lack of commitment to the welfare and security of Nigerians are enough reasons for the president to step down.

“A few days ago, I called on President Tinubu to resign from office for incompetence, lack of capacity, lack of compassion, and failure to improve on his campaign promises. Some people thought perhaps the call was excessive,” he said.

“But with the daily revelations of pervasive 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 from office.

“The collapse of elementary forms of due process under Tinubu and the increased evidence of rampant looting of Nigerian public finances reinforce the need for greater accountability. It is now time for Nigerian citizens to rise within the law and hold this administration to account.”