Nigeria's Finance Minister Denies Operating ‘Shadow Budget’

The claim that the Nigerian government is operating a ‘shadow budget’ has been dismissed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele. In a statement issued on Sunday, Oyedele described recent public commentary suggesting that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside legislative approval as inaccurate and misleading.

Oyedele explained that the Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance. He noted that under Sections 80 to 83 and 162 of the 1999 Constitution, as amended, public funds may be withdrawn and spent only in accordance with constitutional provisions and laws enacted by the National Assembly.

The minister also explained that federal expenditures are undertaken through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations approved by lawmakers. He argued that multi-year capital projects, which often extend beyond a single fiscal year, are implemented under existing legal provisions, including approved capital rollovers where necessary.

Oyedele challenged those making the allegations to provide evidence of specific projects allegedly executed without appropriation or legal authority. He stressed that Nigeria’s fiscal framework includes several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.

According to Oyedele, these expenditures are lawful, publicly disclosed and subject to oversight, audit and accountability mechanisms. He also rejected suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit, explaining that fiscal deficits are determined by the relationship between total government revenues and expenditures.

The IMF’s observations were largely focused on improving the comprehensiveness, timing and presentation of fiscal reporting rather than questioning the legality of government spending, Oyedele said. He recalled that President Bola Tinubu had, during the presentation of the 2026 Appropriation Bill to the National Assembly in December 2025, advocated harmonising multiple and overlapping budgets into a single, cohesive framework.

Oyedele reaffirmed the Federal Government’s commitment to transparency, accountability and prudent fiscal management, noting that ongoing reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes. He added that these reforms have received recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and major global media organisations.

The Finance Minister urged commentators to ensure that debates are based on facts and a proper understanding of Nigeria’s constitutional and fiscal framework. He said the Federal Government will continue to uphold the rule of law, maintain transparency in the management of public resources, and work with the National Assembly, oversight institutions, development partners and the Nigerian people further to strengthen fiscal governance in line with international best practices.

“For the avoidance of doubt, the Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” Mr Oyedele stated.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has a background in economics and public finance. He was appointed as the Finance Minister in May 2026, and has since been working to implement reforms aimed at strengthening the country’s fiscal governance.

The controversy surrounding the ‘shadow budget’ controversy has sparked a heated debate in Nigeria, with many calling for greater transparency and accountability in the government’s financial management practices. The Minister has urged commentators to ensure that debates are based on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.