IMF disclosure: Nigerians react as N8.8 trillion unreported spending allegation sparks debate

Nigerians have taken to social media to react to allegations that the Federal Government failed to record public spending equivalent to about 2% of the country’s Gross Domestic Product (GDP) in recent official budgets. The issue first came to public attention on Wednesday after the International Monetary Fund (IMF) Resident Representative in Nigeria, Christian Ebeke, disclosed during an engagement with business executives in Lagos that Nigeria has unreported fiscal spending amounting to about 2% of GDP.

According to the IMF, the omission makes Nigeria’s fiscal deficit appear smaller than the government’s actual borrowing requirement because some public expenditures, particularly capital projects, were executed outside the official budget framework. A breakdown of the estimated 2% of GDP, based on Nigeria’s nominal GDP of $318.84 billion and an exchange rate of N1,380 to the dollar, puts the value at approximately N8.8 trillion. The figure is higher than the combined N5.41 trillion allocated to defence and N2.48 trillion budgeted for health.

Atiku and Sowore lead criticism

The disclosure has generated widespread debate among Nigerians, particularly after the presidential candidate of the ADC, Atiku Abubakar, on Saturday, July 5, described the development as “the most consequential act of fiscal impunity in Nigeria’s recent democratic history” and alleged the funds could be used to influence the 2027 general elections. In a lengthy statement, Atiku alleged that the unreported spending is being used by the Tinubu administration to finance its 2027 re-election campaign.

“When a government operates a secret treasury of this scale at precisely the moment it needs to purchase electoral outcomes, the conclusion is not difficult to reach. The Tinubu administration is not reforming Nigeria’s economy. It is financing its own political survival with money that belongs to the Nigerian people,” Atiku said. Drawing attention to the alleged removal of N800 billion from state government allocations, he added: “We state clearly and without equivocation that this N800 billion, combined with the N8.8 trillion in unrecorded federal expenditures, points unmistakably to the construction of a massive, multi-source political war chest being assembled ahead of the 2027 general elections.”

The 2027 presidential candidate of the African Action Congress (AAC), Omoyele Sowore, also criticised the government while sharing a seemingly AI-generated image featuring President Bola Tinubu, Chief of Staff Femi Gbajabiamila, Senate President Godswill Akpabio and CBN Governor Yemi Cardoso. “Off-budget spending, hidden from proper scrutiny and accountability. This is not a government; it is an organized looting operation,” Sowore said.

Social media users demand accountability

Political analyst, writer and social advocate Obiasogu David questioned the government’s handling of public funds. “I’m curious to know: Is our government really governing or organizing a money heist?” Referring to the recent controversy over an alleged “fake agency” that reportedly received about N1.3 billion in the 2026 budget, he added: “We have yet to conclude the fake agency smuggled into the National Budget and funded by the federal government since 2024, and there is already another report that N8.8 trillion was looted.”

Another X user, @EpitomeOJ, described the alleged unreported spending as alarming, arguing that such an amount could significantly transform the country’s infrastructure. “N8.8 trillion unaccounted for is wild. That type of money will provide and develop infrastructure for an entire generation.” Commenting on Atiku’s six recommendations, he added: “The recommendations made here should be adopted and concerned citizens should demand accountability. These lootings have to stop.”

Another X user, @paulnnaluo described the alleged unreported spending as “very troubling and completely unacceptable.” “Where are Nigerian people? Why are you all sleeping while food is taken away from your table by your fellow Nigerians?” he asked.

Another X user, Ayoku (@bolajiayo), whose bio identifies him as a social commentator and APC member, cautioned Nigerians against accepting political allegations as established facts. “Making allegations is one thing; proving them is another. If there are genuine concerns, the appropriate institutions should examine the facts and publish their findings. Until then, Nigerians should avoid treating political statements as proven truth.”

What this means for the naira and Nigerian businesses

The revelation of N8.8 trillion in unreported spending raises serious questions about fiscal transparency and the true size of Nigeria’s budget deficit. If public expenditures are being executed outside the official budget framework, it could mean higher borrowing than officially stated, which may put additional pressure on the naira and increase the cost of government debt. For Nigerian businesses, the lack of clarity on actual government spending makes it harder to plan and invest, as the true state of public finances remains unclear.