The Federal Government has strongly denied allegations that it spent more than ₦8 trillion outside the approved 2026 budget, dismissing the claims as a misrepresentation of the International Monetary Fund (IMF)’s recent fiscal assessment and insisting that Nigeria does not operate a “shadow budget.”
The controversy erupted after opposition figures, including former presidential candidate Peter Obi, cited comments linked to the IMF’s 2026 Article IV Consultation Report, claiming that government spending equivalent to about two per cent of Nigeria’s Gross Domestic Product, estimated at roughly ₦8.8 trillion, was not reflected in the national budget. Obi called for greater transparency and urged anti-graft agencies and the National Assembly to investigate the alleged off-budget expenditure.
Responding to the allegations, the Federal Ministry of Finance described the interpretation of the IMF’s findings as “incorrect and misleading.” In a statement, the ministry stressed that the Federal Government does not spend public funds outside the constitutional and statutory framework governing public finance.
According to the government, the IMF’s observations relate to differences in fiscal reporting and accounting treatment rather than the existence of secret or unauthorized spending. Officials maintained that all government expenditures are subject to legal appropriation, oversight and audit processes, rejecting suggestions that a parallel budget exists.
The disagreement has reignited debate over fiscal transparency, with opposition leaders insisting the reported gap deserves independent scrutiny. They argue that even if the discrepancy stems from accounting practices, Nigerians deserve a full explanation of how public funds are captured and reported.
Meanwhile, the government says recent economic reforms have strengthened Nigeria’s public finance management and warned against spreading narratives that could undermine investor confidence. It reiterated its commitment to transparent budgeting and accountability while urging the public to rely on official explanations rather than what it described as misinterpretations of international reports.
The issue is expected to remain a major political talking point as lawmakers, opposition parties and civil society groups continue to demand greater clarity on government spending ahead of deliberations on future fiscal reforms.
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