The Federal Government has dismissed allegations that it spent over ₦8 trillion outside approved budgetary provisions, describing claims of a so-called “shadow budget” as inaccurate and misleading.

In a statement addressing recent public commentary linked to observations in the IMF’s 2026 Article IV Consultation Report, the government maintained that all public expenditures are carried out within the constitutional and legal framework governing public finance in Nigeria.

According to the government, federal expenditures are undertaken pursuant to duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities approved by the National Assembly, in line with Sections 80–83 and 162 of the 1999 Constitution.

The government stressed that multi-year capital projects, statutory transfers, debt service obligations, intervention programmes, and allocations to agencies created by law are legitimate components of public finance management and should not be interpreted as expenditures outside the budget.

It further argued that differences between budget presentation and fiscal reporting standards do not amount to unlawful spending, noting that some expenditures are reported differently under international statistical and reporting frameworks.

The Federal Government also rejected suggestions that the reported figure represented an increase in the fiscal deficit, explaining that deficit calculations depend on the relationship between total revenues and expenditures rather than the financing mechanism used for specific projects.

Officials noted that the IMF’s observations relate primarily to the comprehensiveness and presentation of fiscal reporting rather than the legality of government spending.

The government highlighted ongoing reforms aimed at strengthening fiscal governance, including improved budget credibility, enhanced revenue administration, digitalisation of financial processes, and stronger treasury management.

Reaffirming its commitment to transparency and accountability, the Federal Government said it would continue to work with the National Assembly, oversight institutions, development partners, and other stakeholders to improve public financial management in line with international best practices.