The Federal Government and opposition leaders have clashed over allegations that more than N8.8 trillion in public expenditure was omitted from Nigeria’s official fiscal accounts after the International Monetary Fund (IMF) raised concerns about gaps in the country’s fiscal reporting.
The controversy began after Christian Ebeke, the IMF’s Resident Representative in Nigeria, spoke at an industry event in Lagos. He said government expenditure equal to about two per cent of Nigeria’s Gross Domestic Product (GDP) had not appeared in the country’s fiscal accounts.
Based on Nigeria’s rebased nominal GDP estimate of about N441.5 trillion for 2025, the amount represents approximately N8.83 trillion.
Ebeke said the omission created a statistical discrepancy that understated Nigeria’s fiscal position. However, the Federal Government insisted it had not spent public funds outside the law. It argued that the issue concerns fiscal reporting rather than illegal expenditure.
The IMF’s comments triggered sharp criticism from opposition politicians. They called for investigations and greater accountability in the management of public finances.
Speaking at the Lagos event, Ebeke said the IMF identified expenditure that government agencies failed to capture in official fiscal reports.
“So far we think that there are about two per cent of expenditures that were not reported that should be reported and should be recorded, so that this statistical discrepancy will disappear,” he said.
Ebeke attributed the discrepancy mainly to capital projects executed outside the formal budget framework.
He said some government spending did not appear in approved budget documents or implementation reports. As a result, official records understated Nigeria’s fiscal deficit and public investment.
He also warned that incomplete reporting makes it harder for fiscal and monetary authorities to coordinate economic policy.
According to him, off-budget spending raises broader concerns about accountability, procurement procedures and institutional oversight.
Despite the concerns, Ebeke said the Federal Government has started legislative reforms to improve fiscal reporting. He expressed confidence that the reforms would bring future expenditure into the formal budget framework.
Former Vice President Atiku Abubakar described the IMF’s observations as deeply disturbing. He said the reported discrepancy raised serious constitutional and governance issues.
According to Atiku, the alleged expenditure suggests that a parallel fiscal structure may be operating outside the oversight of the National Assembly.
He urged the National Assembly to launch an immediate investigation into the IMF’s observations.
He also asked the Auditor-General of the Federation to conduct a comprehensive audit of the reported expenditure.
In addition, Atiku urged the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and other anti-corruption agencies to investigate the matter.
The former vice president also alleged that authorities deducted about N800 billion from statutory allocations due to state governments without adequate explanation.
He urged the Federal Government to disclose every project financed through the disputed expenditure. He also demanded details of the contractors, procurement processes and legal approvals for each project.
Atiku argued that Nigerians deserve full accountability over every naira of public expenditure.
Peter Obi, the presidential candidate of the Nigeria Democratic Congress (NDC), also criticised the administration.
He said the IMF’s observations strengthened concerns about transparency and public finance management under President Bola Ahmed Tinubu.
Obi described the alleged N8.83 trillion expenditure as alarming. He noted that the amount exceeds the combined federal allocations to education and health. He also said it represents more than one-third of the country’s capital expenditure budget.
According to Obi, transparent management of such resources could have improved healthcare, education, infrastructure and job creation.
He maintained that the development reinforced his long-standing criticism of the administration’s economic policies.
The Federal Government dismissed claims that it secretly spent more than N8 trillion outside constitutionally approved budgets.
In a statement, Minister of Finance Taiwo Oyedele described reports of a “shadow budget” as inaccurate and misleading.
He said Nigeria’s Constitution clearly regulates public spending. He added that the government authorises expenditure through Appropriation Acts, Supplementary Appropriation Acts and other statutory provisions approved by the National Assembly.
Oyedele explained that multi-year capital projects, statutory transfers, intervention funds and first-line charges operate under separate legal frameworks.
He said differences in statistical reporting should not be mistaken for secret or unlawful spending. He also rejected claims that the reported discrepancy automatically increased Nigeria’s fiscal deficit.
According to him, fiscal deficits depend on the relationship between government revenue and expenditure rather than the reporting format used in budget documents.
He added that the IMF’s observations focused on improving the completeness of fiscal reporting, not on questioning the legality of government expenditure.
