A recent report by the International Monetary Fund (IMF) has revealed that approximately ₦8.8 trillion (equivalent to 2% of Nigeria’s GDP) in unrecorded public expenditures.
This, has ignited a significant political controversy, with former Vice President Atiku Abubakar calling for an immediate probe into the Tinubu-led administration.
The IMF’s findings, published on July 1, 2026, highlight a critical lack of transparency in Nigeria’s fiscal management, raising concerns about accountability and economic stability.
IMF Uncovers Fiscal Discrepancy
Christian Ebeke, the IMF resident representative in Nigeria, disclosed that a substantial portion of public spending has not been captured in recent official budgets.
This discrepancy, amounting to roughly ₦8.8 trillion, stems largely from large -scale government projects executed off-budget.
This situation creates a significant
gap between Nigeria’s reported fiscal deficit and its actual financing requirements, complicating economic assessments and policy coordination.
Ebeke noted that while Nigerian authorities have initiated steps to address the issue by revising budget laws to include previously unrecorded spending, updated implementation reports are still necessary for full transparency.
Atiku Alleges “Lagos Playbook” at National Level
Atiku Abubakar, in a strongly worded statement, described the revelation as “the most consequential act of fiscal impunity in Nigeria’s recent democratic history”.
He alleged that the unrecorded expenditures are a continuation of a pattern observed during President Tinubu’s tenure as Governor of Lagos State, referring to it as the “Alpha Beta arrangement” where a significant portion of internally generated revenue was allegedly siphoned off before official capture.
Atiku claims this “Lagos playbook” has now been scaled up to the federal level, with dire consequences for the nation.
Beyond the ₦8.8 trillion in unrecorded federal expenditures, Atiku also highlighted an alleged unlawful deduction of ₦800 billion from statutory allocations meant for state governments.
He asserted that these combined figures indicate the formation of a “massive, multi-source political war chest” ahead of the 2027 general elections.
Economic Ramifications and Calls for Probe
Abubakar argued that the lack of fiscal transparency has directly contributed to Nigeria’s economic woes, including high interest rates, naira devaluation, and catastrophic unemployment levels.
He posited that the ₦8.8 trillion, if transparently managed, could have been used for a comprehensive economic recovery program, stimulating growth and creating jobs.
In response to these findings, Atiku has demanded immediate actions from various institutions:
• National Assembly: To convene emergency investigative hearings on the IMF’s findings.
• Auditor-General of the Federation: To conduct a full, independent audit of all offbudget expenditures, with findings published unredacted.
• Federal Government: To provide a transparent public account of every Naira spent outside the official budget, detailing projects, contractors, procurement processes, and authorizing individuals.
• Restoration of State Allocations: The Federal Government must restore the ₦800 billion unlawfully deducted from state allocations and account for its deployment.
• Anti-Corruption Agencies: The EFCC, ICPC, and other law enforcement agencies must open formal investigations into both the unrecorded expenditures and unlawful deductions.
• Civil Society and International Community: To demand accountability and transparency in public finance management.
Government Response and Broader Context
While the Nigerian government has not yet issued a direct, detailed response to Atiku’s specific allegations regarding the ₦8.8 trillion, the IMF’s Article IV consultation report itself acknowledges that authorities are working to address the issue of unrecorded spending.
The report also praised Nigeria’s recent reforms for strengthening economic stability and investor confidence, though it cautioned that the benefits have yet to reach many citizens.
This unfolding situation underscores the ongoing challenges Nigeria faces in achieving fiscal transparency and accountability, with significant implications for its economic future and political landscape.