IMF Raises Concerns Over Nigeria’s Budget Reporting

The International Monetary Fund (IMF) says Nigeria’s fiscal deficit does not fully reflect government spending because some public expenditure was left out of recent official budgets.

Speaking in Lagos on July 1, 2026, the IMF’s Resident Representative in Nigeria, Christian Ebeke, disclosed that public expenditure equal to about two per cent of Nigeria’s Gross Domestic Product (GDP) was omitted from the country’s fiscal accounts. He explained that the exclusion created a mismatch between the reported Nigeria’s fiscal deficit and the government’s actual borrowing requirements.

According to Ebeke, the missing expenditure was mainly linked to off-budget capital projects, making it more difficult to accurately assess Nigeria’s public finances and investment levels. The IMF believes the omitted spending should have been included in the country’s official financial records.

“So far, we think that there are about two per cent of GDP of expenditure that were not reported and should be recorded so that this statistical discrepancy will disappear,” Ebeke said.

He noted that incomplete fiscal reporting makes it harder for monetary and fiscal authorities to coordinate policies because the government’s true financing needs are not fully reflected in official figures.

Ebeke added that the Federal Government has started correcting the issue by revising and repealing recent budget laws to accommodate the previously excluded expenditure. However, he stressed that updated implementation reports remain necessary to provide a complete picture of Nigeria’s fiscal deficit and overall public spending.

The IMF also called for greater transparency, warning that off-budget spending could weaken accountability by reducing public oversight of procurement processes and government expenditure.

Despite raising these concerns, the Fund acknowledged that Nigeria’s recent economic reforms have improved macroeconomic stability and boosted investor confidence through its latest Article IV consultation. However, it cautioned that many Nigerians are yet to experience the benefits of those reforms and warned that global developments, including the conflict in the Middle East, could affect the country’s economic outlook.

Do you think greater transparency would strengthen confidence in the management of Nigeria’s fiscal deficit?