The Federal Government has dismissed claims that it spent more than N8tn outside the approved budget, describing reports suggesting the existence of a "shadow budget" as false and misleading.
In a statement issued on Sunday by the Federal Ministry of Finance, the government said recent public commentary misrepresented observations contained in the International Monetary Fund's 2026 Article IV Consultation Report, insisting that all federal expenditures are carried out within the provisions of the Constitution and relevant laws.
The ministry stated that under Sections 80 to 83 and 162 of the 1999 Constitution, public funds can only be withdrawn and spent with the approval of the National Assembly through Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations.
It explained that multi-year capital projects, statutory transfers, debt service obligations, intervention funds, security-related spending and other legally approved expenditures are recognised components of Nigeria's public finance system and should not be interpreted as off-budget or unlawful spending.
According to the ministry, those expenditures are backed by law, captured in fiscal reports and remain subject to legislative oversight and audit, adding that differences in their presentation under international reporting standards do not amount to illegal spending.
The government also rejected suggestions that the amount cited represented an increase in Nigeria's fiscal deficit, explaining that budget deficits are determined by the relationship between government revenue and expenditure rather than the financing method adopted for approved projects.
The ministry said the IMF's observations were primarily related to the presentation and comprehensiveness of fiscal reporting rather than the legality of government expenditure.
It added that President Bola Tinubu had already urged the National Assembly to harmonise multiple budget frameworks into a single, integrated system as part of ongoing public finance reforms.
Reaffirming its commitment to transparency, accountability and prudent fiscal management, the Federal Government urged Nigerians to base public discussions on verified facts, pledging to continue strengthening fiscal governance in collaboration with the National Assembly, oversight institutions and development partners.
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