The International Monetary Fund (IMF) has raised significant concerns regarding Nigeria’s fiscal transparency after identifying approximately N8.83 trillion in public expenditure that remained absent from recent official budget documentation. According to Christian Ebeke, the IMF resident representative for Nigeria, this off-budget spending—estimated at roughly 2% of the nation’s Gross Domestic Product (GDP)—has created a substantial discrepancy between reported deficit figures and the government’s actual financing requirements. The IMF noted that these funds were primarily directed toward large-scale capital projects conducted outside the standard budget perimeter, a practice that distorts the accuracy of Nigeria’s fiscal stance and complicates the alignment of monetary and fiscal policies. While the report acknowledges that Nigerian authorities have begun taking corrective measures by revising budget laws to incorporate these previously unrecorded expenditures, the IMF stressed that improving oversight and procurement transparency remains critical to maintaining investor confidence and ensuring long-term debt sustainability. The revelation comes at a time when Nigeria is also grappling with high debt-servicing costs, which are projected to consume over 50% of federal revenue in 2026, further highlighting the urgent need for structural improvements in public financial management to prevent future fiscal slippages and enhance the credibility of national budget processes.
