The International Monetary Fund (IMF) has raised concerns over gaps in Nigeria’s fiscal reporting, revealing that public expenditure equivalent to about 2% of the country’s Gross Domestic Product (GDP) was not captured in recent official budgets.
Speaking to business executives in Lagos on Wednesday, IMF Resident Representative in Nigeria, Christian Ebeke, said the omission has created a discrepancy between the country’s reported fiscal deficit and its actual borrowing requirements.
According to Ebeke, the statistical gap arises because some government capital expenditures were executed outside the formal budget process and were therefore excluded from budget documents and implementation reports.
“So far we think that there are about 2% of GDP of expenditure that were not reported that should be reported and should be recorded, so that this statistical discrepancy will disappear,” he said.
Ebeke explained that much of the unreported spending is linked to major government projects undertaken off-budget, making it more difficult to accurately assess Nigeria’s fiscal position and the scale of public investment.
He warned that incomplete fiscal reporting could also complicate coordination between fiscal and monetary authorities by obscuring the government’s true financing needs.
The IMF official noted that Nigerian authorities have begun addressing the issue by repealing and revising recent budget laws to incorporate previously omitted expenditures. However, he stressed that updated budget implementation reports are still required to provide a complete picture of public finances.
He added that greater fiscal transparency is essential, arguing that off-budget spending raises concerns about procurement practices, accountability and oversight.
