IMF Flags 2% of Nigeria’s GDP Omitted from Official Budgets

Nigeria’s official budgets have not recorded public spending worth about 2% of GDP, according to the IMF. This gap arises because many capital projects are executed off-budget. The IMF Resident Representative in Nigeria told business leaders in Lagos that these omissions make the reported fiscal deficit appear smaller than the true borrowing needs. He noted that unreported expenditures distort fiscal and monetary coordination. Nigerian authorities have begun revising budget laws to include these costs and improve transparency. Better reporting would eliminate statistical discrepancies and strengthen public accountability. The IMF also praised recent reforms like foreign exchange liberalisation and fuel subsidy removal. It warned, however, that complex financing deals with banks need more transparency and that Nigeria remains vulnerable to external shocks.

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