Nigeria grapples with 2% GDP gap in public spending and weak procurement transparency

The International Monetary Fund said Nigeria omitted public spending equivalent to about 2 % of GDP – roughly N8.8 trillion ($6.2 billion) – from recent budget documents. IMF resident representative Christian Ebeke explained that the off‑budget expenditure creates a statistical gap between the reported fiscal deficit and the nation’s true financing needs, hampers coordination between fiscal and monetary authorities, and raises concerns over procurement oversight. Nigerian authorities have begun revising budget laws to bring the unrecorded spending into the formal fiscal framework, but updated implementation reports are still required.

A domestic survey by the Network for Fiscal Governance and Accountability Development (NEFGAD) echoed these transparency challenges in the public procurement system. The survey found that 63.6 % of respondents consider access to contract opportunities difficult, only 40.9 % rate procurement as transparent, and 54.6 % say opportunities are rarely advertised fairly. Nearly 60 % view the oversight institutions as ineffective, while 81.8 % support publishing all awarded contracts and performance reports. The group called for a nationwide e‑procurement system, stronger independent oversight, and the establishment of a public procurement council to curb fraud and improve value for money.