The Minister of Finance and Coordinating Minister for the Economy, Taiwo Oyedele, has dismissed claims that the Federal Government operates a “shadow budget,” insisting that all public spending is carried out within Nigeria’s constitutional and legal framework.
In a statement issued on Monday in Abuja, Oyedele was responding to comments attributed to the International Monetary Fund Resident Representative in Nigeria, Christian Ebeke, who reportedly said Nigeria failed to formally capture public spending equivalent to about two per cent of its Gross Domestic Product (GDP) in recent national budgets.
Ebeke had alleged that the unrecorded spending was largely linked to major infrastructure projects executed outside the formal budget process, arguing that the practice understated Nigeria’s fiscal deficit, concealed its actual financing needs and weakened fiscal transparency.
Rejecting the claims, Oyedele described them as inaccurate and misleading, stressing that the Federal Government does not spend public funds outside constitutionally approved procedures.
According to him, Sections 80–83 and 162 of the 1999 Constitution (as amended) require that public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
He explained that federal expenditures are implemented through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations passed by the National Assembly.
The minister added that multi-year capital projects spanning several budget cycles are executed under existing laws, including approved capital rollover provisions where applicable, noting that such arrangements are standard public financial management practices rather than evidence of off-budget spending.
Oyedele further maintained that allegations of more than ₦8 trillion being secretly spent outside legislative approval lacked credible evidence.
He said any claim of unlawful expenditure should identify the specific projects involved and provide verifiable proof instead of relying on speculation.
The minister also clarified that Nigeria’s public finance system includes several legally established expenditure mechanisms outside the annual Appropriation Act but authorised under separate legislation.
These include statutory transfers to development commissions and government agencies, cost-of-collection and administrative deductions retained by revenue-generating agencies, capital projects approved under separate budgets for certain agencies and the Federal Capital Territory, special interventions authorised by law, as well as debt servicing and other statutory obligations.
Oyedele emphasised that such expenditures are lawful, publicly disclosed in fiscal reports and remain subject to oversight, audit and accountability mechanisms.
He noted that while their presentation may differ under international fiscal reporting standards adopted by the Federal Government, such classification should not be interpreted as evidence of illegal or off-budget spending.
Never miss a moment! Get the stories shaping Nigeria, delivered straight to your phone. Follow Peoplesdaily Newspaper on WhatsApp for breaking news, exclusive reports, and the headlines everyone will be talking about, before anyone else.
