The International Monetary Fund (IMF) has raised concerns over Nigeria’s fiscal reporting, revealing that public spending equivalent to about 2% of the country’s Gross Domestic Product (GDP) was omitted from recent government budgets. According to the IMF, the missing expenditure created a significant gap between Nigeria’s reported fiscal deficit and its actual financing requirements, making the country’s financial position appear stronger than it truly was.
Speaking at a meeting with business executives in Lagos on Wednesday, IMF Resident Representative in Nigeria, Christian Ebeke, explained that some government expenditures, particularly capital projects, were not captured in official budget documents and implementation reports. As a result, Nigeria’s fiscal deficit figures appeared lower than the government’s real borrowing needs, limiting the accuracy of public finance assessments.
Ebeke noted that a large portion of the unreported spending was tied to projects executed outside the formal budget framework. He stressed that these off-budget expenditures make it more difficult for policymakers, investors, and stakeholders to accurately evaluate the government’s spending patterns and investment priorities. According to him, recording the omitted expenditures would eliminate the statistical discrepancies currently affecting fiscal data.
The IMF official disclosed that Nigerian authorities have already begun taking corrective measures by revising and repealing certain budget laws to accommodate previously unrecorded expenditures. However, he emphasized that updated budget implementation reports are still necessary to fully reflect the changes and provide a clearer picture of the country’s public finances.
While acknowledging Nigeria’s recent economic reforms and improvements in macroeconomic stability, the IMF warned that greater fiscal transparency remains critical to sustaining investor confidence and strengthening accountability. Ebeke cautioned that off-budget spending raises concerns about procurement processes, oversight, and governance, adding that the benefits of ongoing reforms could still be vulnerable to global economic risks and external shocks, including tensions in the Middle East.
source: The cable
