Minister of Finance and Coordinating Minister of the Economy, Wale Edun
Chief Economist at SPM Professionals, Paul Alaje, has raised concerns over reports of unbudgeted government spending, warning that any expenditure outside legislative approval could undermine fiscal discipline and transparency.
Speaking during an interview on Channels Television, Alaje described the allegations of off-budget spending as “worrisome” and said such claims, if proven, should concern all stakeholders.
His comments follow the controversy surrounding the recent Nigeria Development Update (NDU) by the World Bank last week, which sparked debate over possible hidden or poorly-disclosed government expenditures.
The Federal Government has, however, dismissed the claims, attributing them to misinterpretation of fiscal data, particularly deductions from the Federation Account Allocation Committee (FAAC).
Alaje noted that while there may be differing interpretations of the report, the core issue remains the need for accountability in public finance.
“Any part of government money that is spent and is not budgeted for causes a lot of worry. We should all be concerned,” he said.
He stressed the importance of maintaining a transparent fiscal structure, adding that institutions must ensure clarity in how public funds are allocated and spent.
The economist also called for engagement between the World Bank and Nigeria’s fiscal authorities to reconcile discrepancies and provide clearer explanations of the figures in question.
According to him, both the government and international institutions have a responsibility to ensure that citizens understand how public resources are managed.
He added that while some deductions from FAAC may be legitimate statutory transfers or obligations, the lack of clarity around such transactions often fuels suspicion and public distrust.
Alaje warned that failure to address concerns around unbudgeted spending could weaken confidence in public financial management and complicate economic planning.
The debate comes amid heightened scrutiny of government finances, with stakeholders urging stricter adherence to budgetary provisions and improved disclosure to strengthen accountability.