Nigeria denies shadow budget, rejects IMF claim

The Nigerian government has firmly denied allegations that it operates a "shadow budget" or spent over 8 trillion naira outside the officially approved national budget. In a statement issued on Sunday, July 5, 2026, Finance Minister Taiwo Oyedele dismissed the claims as a misrepresentation of a recent International Monetary Fund report and a misunderstanding of the country's public finance framework.

The controversy stems from comments made by IMF Resident Representative in Nigeria, Christian Ebeke, who noted that public spending equivalent to roughly two percent of Nigeria's Gross Domestic Product was not reported in recent official budgets. This discrepancy, according to the IMF, obscured the country's true financing needs and made its fiscal deficit appear smaller than its actual borrowing requirements. The IMF's observations were part of its 2026 Article IV Consultation Report.

These technical observations were seized upon by opposition figures, including former Vice President Atiku Abubakar and former presidential candidate Peter Obi. They accused President Bola Tinubu's administration of running an illegal 8.8 trillion naira budget system outside legislative oversight and...