The Federal Government has dismissed claims that it spent more than ₦8 trillion outside approved budgetary provisions, insisting that all public expenditures were carried out within the framework of existing laws and appropriations.

The government said reports suggesting the existence of extra-budgetary spending or a “shadow budget” misrepresented observations contained in recent discussions on Nigeria’s fiscal position and public finance management.

According to officials, federal expenditures are undertaken through duly approved Appropriation Acts, Supplementary Appropriation Acts, statutory transfers, and other legally recognised mechanisms authorised by the National Assembly.

The government explained that expenditures relating to multi-year capital projects, debt servicing, statutory obligations, and intervention programmes are recognised components of public finance administration and should not be interpreted as spending outside the budget.

It further clarified that differences in the presentation of fiscal data under international reporting standards do not imply illegality or unapproved spending, noting that fiscal reporting classifications often differ from the structure of annual appropriation documents.

The Federal Government also rejected suggestions that the alleged figure represented an increase in the nation’s fiscal deficit, maintaining that deficit calculations depend on the relationship between total government revenues and expenditures.

Reaffirming its commitment to transparency, accountability, and prudent fiscal management, the government said ongoing reforms are aimed at strengthening budget credibility, improving financial reporting, and aligning Nigeria’s fiscal practices with international best standards.