By Ayo Kehinde
The International Monetary Fund (IMF) has disclosed that Nigeria recorded public spending equivalent to about two percent of its Gross Domestic Product (GDP) outside recent official budgets.
It noted that the anomaly created a gap between the country’s reported fiscal deficit and its actual financing requirements.
The IMF Resident Representative in Nigeria, Christian Ebeke, disclosed on Wednesday while addressing business executives in Lagos.
He explained that the discrepancy has made Nigeria’s fiscal deficit appear smaller than the level of government borrowing because some capital expenditure was omitted from budget documents and implementation reports.
According to Ebeke, the unreported spending is largely linked to major government projects executed outside the formal budget framework, making it difficult to accurately assess the country’s fiscal position and public investment.
“So far, we think that there are about 2 percent of GDP of expenditure that were not reported and should be properly recorded so that this statistical discrepancy will disappear,” he said.
Ebeke noted that incomplete fiscal reporting also complicates coordination between fiscal and monetary authorities, as policymakers may lack a clear picture of the government’s true deficit and financing needs.
He, however, said the Nigerian government has begun addressing the issue by repealing and revising recent budget laws to capture previously unreported expenditure, although updated budget implementation reports are still required to improve transparency.
The IMF official stressed that greater fiscal transparency is essential, warning that off-budget spending raises concerns over procurement practices, accountability, and oversight.
In its latest Article IV Consultation on Nigeria, the IMF commended the government’s far-reaching economic reforms, saying they have improved macroeconomic stability and strengthened investor confidence.
However, the Fund cautioned that the gains have yet to translate into broad-based benefits for millions of Nigerians and remain vulnerable to external shocks, including the ongoing conflict in the Middle East.
