Business
Nigerian govt not operating “shadow budget” – Finance Minister
The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the approved budget, insisting that it does not operate a “shadow budget” and that all public expenditures are carried out within the framework of the Constitution and relevant laws.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo 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.
The minister said the claims, reportedly linked to references made by the International Monetary Fund (IMF) and its 2026 Article IV Consultation Report, created a false impression about the Federal Government’s financial management 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.
He explained that under Sections 80 to 83 and 162 of the 1999 Constitution, as amended, public funds may be withdrawn and spent only in accordance with constitutional provisions and laws enacted by the National Assembly.
According to him, federal expenditures are undertaken through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations approved by lawmakers.
The minister also noted 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.
He argued that such arrangements are standard features of public financial management and should not be interpreted as spending outside the budget.
Mr Oyedele challenged those making the allegations to provide evidence of specific projects allegedly executed without appropriation or legal authorisation.
“Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” he said.
The minister further explained that Nigeria’s fiscal framework includes several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.
These include statutory allocations to development commissions and agencies created by law, cost-of-collection provisions for revenue-generating agencies, capital expenditures approved through separate budgets, special interventions addressing national priorities, as well as debt service obligations and other statutory transfers.
He stressed that these expenditures are lawful, publicly disclosed and subject to oversight, audit and accountability mechanisms.
According to Mr Oyedele, differences between how such expenditures are reported in fiscal documents and how they appear in annual appropriation laws often arise from international reporting standards and should not be misconstrued as evidence of unlawful spending.
The minister also rejected suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit.
He explained that fiscal deficits are determined by the relationship between total government revenues and expenditures, adding that the source of financing for approved projects does not automatically increase the deficit.
Mr Oyedele said 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.
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.
The minister 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.
READ ALSO: Oyedele confirms Nigeria has drawn first $1.5 billion under $5 billion Abu Dhabi financing deal
He added that these reforms have received recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and major global media organisations.
While welcoming public scrutiny of government finances, Mr Oyedele urged commentators to ensure that debates are based on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.
“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,” he said.
Baze University, Abuja, has acquired two training aircraft from Austria as it expands its investment in aviation education.
The aircraft arrived at the Nnamdi Azikiwe International Airport, Abuja, on Friday and received a traditional water cannon salute, according to reports by Nigerian media.
The university’s founding Pro-Chancellor, Datti Baba-Ahmed, disclosed the acquisition, saying it would strengthen Nigeria’s aviation training capacity and support the development of skilled professionals.
The Vice-Chancellor, Abiodun Adeniyi, a professor, also described the development as part of a broader entrepreneurial vision to build institutions that contribute to national development.
The acquisition represents another expansion of Baze University, which has invested in higher education and healthcare before venturing into aviation training.
In a reflection shared on Facebook on Saturday, Mr Adeniyi described the development as an example of entrepreneurship driven by vision, patience, hard work and calculated risk-taking.
He said the acquisition illustrated how businesses could grow through personal investment, borrowing, reinvestment and diversification, rather than waiting until they had accumulated all the capital needed for expansion.
“Successful entrepreneurs do not necessarily wait to become debt-free before expanding. They distinguish productive borrowing from reckless indebtedness, deploying resources into assets that create lasting economic value,” he wrote.
Mr Adeniyi said the investment went beyond private wealth creation, arguing that businesses established around education, healthcare and aviation could contribute to national development by creating jobs, building local capacity and developing human capital.
He described such investments as an expression of economic patriotism, where entrepreneurship also responds to national needs.
Expanding into aviation
The two aircraft are expected to support practical flight training at Baze Aviation School, which is being developed in Bwari, Federal Capital Territory.
The school is part of the university’s plans to combine classroom instruction with practical aviation training. Its proposed facilities include a dedicated runway, hangar, terminal building, laboratories and simulation centres.
The Coordinator of the Aviation School, Aliyu Bello, said the aircraft would enable students to gain hands-on experience alongside ground-school instruction.
Mr Baba-Ahmed said the institution planned to train at least 600 professionals in areas including air traffic control, air rescue and firefighting, subject to approval by relevant regulatory authorities.
He also disclosed plans for an aerodrome hub with a runway measuring 1,800 metres by 30 metres, with an additional 15 metres.
The National Universities Commission has approved two undergraduate programmes at the university for the 2026/2027 academic session: Aviation Management under the Faculty of Management and Social Sciences and Aerospace Engineering under the Faculty of Engineering.
Mr Adeniyi said the university would become the first private university in Africa to operate its own aviation school.
Entrepreneurship and national development
Mr Adeniyi’s remarks place the aircraft acquisition within a broader debate about the role of private investment in addressing Nigeria’s development challenges.
Nigeria’s aviation industry requires specialised human resources across several fields, including pilots, aircraft maintenance engineers, air traffic controllers and other technical professionals. Training institutions that combine academic instruction with practical facilities could help expand the pool of skilled workers available to the sector.
READ ALSO: How community-based schools could help Nigeria tackle out-of-school children crisis – dRPC
However, aviation training is capital-intensive and requires substantial investment in aircraft, infrastructure, maintenance, safety systems and regulatory compliance.
Mr Adeniyi said the development demonstrated the importance of sustaining a vision through years of uncertainty and making investments that could generate long-term economic value.
He traced Mr Baba-Ahmed’s expansion from Baze University, established largely with personal resources and subsequently supported by bank financing, to investments in healthcare through Baze Hospital, higher education through Baba-Ahmed University in Kano and now aviation training.
The professor argued that investments in such sectors could help reduce dependence on foreign expertise while creating opportunities for Nigerians to acquire technical skills and participate in productive enterprises.
He said the benefits of entrepreneurship should not be measured only by wealth accumulated by investors but also by the institutions created, jobs generated and national needs addressed.
“Perhaps the lesson is that great enterprises are built not simply with money, but through vision, sacrifice, perseverance and the capacity to transform ambition into productive institutions,” Mr Adeniyi wrote.
He added that when private enterprise responds to national development priorities, it takes on significance beyond commercial success.
The vice-chancellor congratulated Mr Baba-Ahmed on the acquisition, describing it as another expression of a sustained investment philosophy whose benefits could extend beyond the investor.
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