FG Breaks Silence on IMF’s Alleged N8.8 Trillion Off-Budget Spending, Explains What Really Happened
- Federal Government has denied allegations of ₦8.8 trillion off-budget spending as reports misunderstood
- Minister Oyedele insists all expenditures are legally authorised and supported by statutory approvals
- IMF report prompts political backlash; calls for investigation into alleged off-budget spending gains traction
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government has rejected claims that it secretly spent about ₦8.8 trillion outside the approved national budget, insisting that reports based on the International Monetary Fund's (IMF) latest assessment have been misunderstood and misrepresented.
The government said every kobo spent by the administration of President Bola Tinubu was authorised under Nigeria's constitutional and legal framework, stressing that there is no such thing as a "shadow budget."
Source: Twitter
FG dismisses off-budget spending allegations
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said reports suggesting the Federal Government spent funds equivalent to about two per cent of Nigeria's Gross Domestic Product (GDP) without legislative approval were inaccurate.
According to him, the reports distorted comments made by the IMF Resident Representative in Nigeria and the Fund's 2026 Article IV Consultation Report, creating the false impression that the government had secretly executed projects outside the law.
Oyedele maintained that the Federal Government does not spend public funds outside the constitutional and statutory framework governing public finance.
He explained that Sections 80 to 83 and 162 of the 1999 Constitution provide that public funds can only be withdrawn and spent in line with laws passed by the National Assembly.
All spending backed by law, minister insists
The minister stressed that every Federal Government expenditure is supported by Appropriation Acts, Supplementary Appropriation Acts or other statutory approvals granted by lawmakers.
He noted that several government projects run across multiple budget cycles and are implemented under approved capital rollover provisions where applicable.
"These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget," Oyedele said.
He challenged those alleging that trillions of naira were secretly spent to provide evidence by identifying specific projects allegedly executed without legislative approval.
According to him, claims of such magnitude must be supported by verifiable facts rather than speculation.
Why the figures appeared different
Oyedele explained that Nigeria's fiscal framework includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.
These include allocations to development commissions, debt servicing obligations, intervention funds for infrastructure, security and disaster response, as well as the cost of revenue collection retained by designated agencies.
He said these expenditures are lawful, publicly disclosed and subject to audit and oversight, even though their presentation under international reporting standards may differ from how they appear in the annual budget.
The minister also dismissed suggestions that the reported amount automatically increased Nigeria's fiscal deficit, explaining that deficits are determined by the relationship between total government revenue and expenditure, not by the classification of spending.
IMF report sparks political reactions
According to Oyedele, the IMF's observations focused mainly on improving the comprehensiveness and presentation of Nigeria's fiscal reporting rather than questioning the legality of government spending.
He recalled that President Bola Tinubu had already called for a harmonised national budget framework while presenting the 2026 Appropriation Bill to the National Assembly in December 2025, as part of broader reforms to improve fiscal transparency.
The controversy followed reports that IMF Resident Representative Christian Ebeke said Nigeria failed to capture public spending equivalent to about two per cent of GDP in recent budgets, making the country's fiscal deficit appear lower than its actual financing needs.
The IMF, however, acknowledged that the Federal Government had begun reforms to strengthen fiscal reporting and align budget presentation with international standards.
The report triggered criticism from opposition leaders, including former Vice President Atiku Abubakar and former Anambra State governor Peter Obi.
Source: Twitter
Atiku called on the EFCC, ICPC, the National Assembly and the Auditor-General of the Federation to investigate the alleged ₦8.8 trillion off-budget spending, while Obi described the report as evidence of "grand corruption" and demanded greater transparency and accountability in the management of public finances.
Reaffirming the government's position, Oyedele said the Tinubu administration remains committed to prudent fiscal management, transparency and accountability, adding that ongoing reforms have strengthened budget credibility, treasury management and revenue administration while earning recognition from the IMF, international investors and global credit rating agencies.
IMF reveals naira's true value against USD
Legit.ng earlier reported that the International Monetary Fund (IMF) has revealed what it considers the "fair value" of the Nigerian naira, saying the local currency remains significantly undervalued despite recent gains against the United States dollar across official and parallel foreign exchange markets.
In its latest assessment of Nigeria's economy, the Washington-based lender said the naira is trading about 25.6 per cent below its value based on the country's economic fundamentals, even after recording a notable recovery following sweeping foreign exchange reforms introduced by the Federal Government.
According to the IMF's latest Article IV Consultation Report, the naira's current exchange rate does not fully reflect improvements in Nigeria's external position and macroeconomic adjustments.
Source: Legit.ng
