The International Monetary Fund (IMF) has disclosed that Nigeria failed to report government expenditures equivalent to about two per cent of its Gross Domestic Product (GDP), estimated at approximately ₦8.8 trillion, prompting renewed debate over the country’s fiscal transparency.
The disclosure was made by the IMF’s Resident Representative in Nigeria, Christian Ebeke, during an engagement with business leaders in Lagos following the release of the Fund’s 2026 Article IV Consultation Report.
According to Ebeke, the unreported spending largely relates to capital projects executed outside the formal budget reporting framework. He said the omission has created statistical discrepancies that make Nigeria’s fiscal deficit appear smaller than it actually is and complicates the coordination of fiscal and monetary policies.
“So far, we think that there are about two per cent of GDP of expenditure that were not reported that should be reported and should be recorded so that this statistical discrepancy will disappear,” Ebeke said.
The IMF noted that incorporating the omitted expenditures into official fiscal records would provide a more accurate picture of the country’s public finances and borrowing requirements.
The IMF’s findings have triggered strong reactions from opposition leaders, who called for an investigation into the reported discrepancy.
Former Vice President Atiku Abubakar urged the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the National Assembly to probe the alleged unreported spending. He argued that public funds must be subjected to constitutional oversight and accountability.
Similarly, former Labour Party presidential candidate Peter Obi described the reported ₦8.8 trillion as a significant accountability concern. Obi said the amount exceeds the combined federal allocations to critical sectors such as health and education and represents a substantial portion of the country’s capital expenditure.
The Federal Government has, however, dismissed suggestions that it operates a “shadow budget” or spends public funds outside legal procedures.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said claims of unlawful spending were based on a misinterpretation of the IMF’s technical assessment.
Edun maintained that all government expenditures are made in line with the provisions of the 1999 Constitution and annual Appropriation Acts approved by the National Assembly.
“Assertions of this magnitude must be supported by verifiable facts rather than conjecture,” the minister said, adding that it was important to distinguish between budget appropriations, expenditure authorisation, financing and fiscal reporting.
The ministry explained that the IMF’s observations relate to the presentation and comprehensiveness of fiscal reporting under international statistical standards rather than the legality of government spending. It noted that some multi-year capital projects may be recorded differently in fiscal reports despite having received the necessary legal approvals.
The government also reiterated its commitment to improving fiscal transparency through ongoing public finance reforms, including the digitisation of government financial management systems and efforts to strengthen budget reporting.
The IMF’s observations come as Nigeria continues to implement economic reforms aimed at improving fiscal sustainability, while balancing rising public spending demands with efforts to reduce budget deficits and stabilise the economy.
