International Monetary Fund (IMF) has raised concerns over Nigeria’s fiscal transparency, disclosing that about two per cent of the country’s Gross Domestic Product (GDP), estimated at N8.83 trillion, was omitted from recent official budget documents.

Bola Tinubu

Unreported public spending—also known as off-budget expenditure—happens when a government spends money on public projects or services without including those costs in official budget documents.

This practice hides the true size of the government’s deficit, hides debt accumulation, and distorts overall economic data.

The IMF said the unreported expenditure has created a significant gap between Nigeria’s reported fiscal deficit and its actual financing requirements, making government borrowing appear lower than it truly is.

Speaking at an industry event in Lagos, Christian Ebeke, resident representative of IMF in Nigeria,  said the expenditure should have been reflected in the country’s fiscal accounts to present a more accurate picture of public finances.

“So far we think that there are about two per cent of GDP of expenditure that were not reported that should be reported and should be recorded, so that this statistical discrepancy will disappear,” Ebeke said.

The estimate translates to approximately N8.83 trillion, based on the National Bureau of Statistics’ (NBS) latest nominal GDP figure of N441.5 trillion for 2025.

According to the NBS, Nigeria’s nominal GDP increased from N372.8 trillion in 2024 to N441.5 trillion in 2025 following improved performance across both the oil and non-oil sectors.

Using the Central Bank of Nigeria’s average exchange rate of N1,436 to the dollar for 2025, the omitted expenditure amounts to about $6.15 billion.

Ebeke attributed the discrepancy largely to capital projects executed outside the formal budget framework, noting that the omission had distorted assessments of Nigeria’s fiscal position and public investment profile.

He explained that some government spending was neither captured in approved budget documents nor reflected in budget implementation reports, resulting in an understatement of the country’s actual fiscal deficit.

According to him, the lack of comprehensive reporting also complicates coordination between fiscal and monetary authorities, as policymakers are left without a complete picture of government finances.

“The lack of full reporting can also complicate coordination between fiscal and monetary policy, as policymakers may not have a clear picture of the true deficit,” he said.

Ebeke warned that off-budget spending raises broader concerns about accountability, procurement processes and institutional oversight, stressing that improving fiscal transparency should remain a priority for the government.

“Improving transparency is critical,” he added, noting that expenditures outside the formal budget process undermine effective oversight and public accountability.

The IMF representative, however, acknowledged that the Federal Government has begun taking steps to address the problem through legislative reforms aimed at bringing previously unreported expenditures within the formal budget framework.

He said the authorities were working to amend existing budget laws to ensure greater disclosure of government spending but stressed that such reforms must be accompanied by timely and comprehensive budget implementation reports.

According to him, closing the reporting gap is essential to strengthening public financial management, improving transparency and restoring confidence in Nigeria’s fiscal framework.

The IMF’s latest observations come months after the National Bureau of Statistics rebased Nigeria’s economy, changing the GDP base year from 2010 to 2019, a revision that significantly increased the size of the country’s economy and, by implication, the value of expenditure estimates expressed as a percentage of GDP.

The concerns also follow the IMF’s recent Article IV Consultation on Nigeria, in which the Fund commended the Federal Government’s ongoing economic reforms for improving macroeconomic stability and boosting investor confidence, while cautioning that persistent structural weaknesses continue to limit the impact of the reforms on the broader population.

Nigeria Deposit Insurance Corporation (NDIC) has warned members of the public against carrying out any transactions with the 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria (CBN).

NDIC

The corporation issued the warning on Thursday following the revocation of the licences by the CBN on July 1, 2026.

In a statement, the NDIC said it had been appointed the official liquidator of the failed banks pursuant to Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1) and 55(2) of the NDIC Act 2023.

It stated that the affected microfinance banks were no longer authorised to carry out banking business in Nigeria following the withdrawal of their licences.

The corporation cautioned members of the public against engaging in any unauthorised transactions with the closed banks or attempting to tamper with their assets and records.

It warned that any attempt by individuals to remove, conceal, retain or interfere with the assets, records or properties of the failed institutions would constitute a violation of the law and could attract appropriate legal sanctions.

According to the NDIC, it has commenced the process of an orderly closure of the banks through their immediate takeover, verification of depositors and payment of insured deposits to eligible customers.

The corporation assured depositors that the liquidation process would be conducted in accordance with relevant laws and regulations.

It added that depositors and the general public would be kept informed on further steps regarding the liquidation exercise, including the verification process and payment of insured sums to eligible depositors.

The NDIC urged customers of the affected banks to remain calm, assuring them of its commitment to protecting insured deposits and ensuring an orderly resolution of the failed financial institutions.

Justice Deinde Dipeolu of the Federal High Court in Lagos has urged all parties in the N98.5 billion patent infringement lawsuit involving the Central Bank of Nigeria (CBN) and Nigeria Inter-Bank Settlement System (NIBSS) to pursue an amicable settlement before trial begins.

The judge issued the directive on Tuesday after noting that CBN, Avanage Nigeria Limited, and the Registrar of Patents and Designs had no legal representation in court.

Justice Dipeolu declined to start the hearing and ordered that hearing notices be served on the absent defendants.

The suit was filed by Enterprise Logistics Speciale Limited and Samuel Kolajo, its managing director.

They are claiming N98.5 billion in damages for alleged infringement of patented cash management technology, breach of a Non-Disclosure Agreement (NDA), and financial losses from the non-deployment of their PillarSalt solution on Nigeria’s national payment infrastructure.

At the hearing, Tayo Oyetibo, SAN, appeared for the plaintiffs, while Olaoluwa Ale-Daniel represented NIBSS.

The CBN was not represented.

Oyetibo told the court the plaintiffs’ witness was ready to testify, but Justice Dipeolu held that the trial could not commence without all parties present.

The judge cited the Federal High Court Act, which encourages alternative dispute resolution, and directed both sides to engage in meaningful settlement talks.

NIBSS counsel argued that the company operates under CBN’s regulatory oversight and cannot act unilaterally. He also said NIBSS opposes creating a monopoly, which he claimed is central to the dispute.

Oyetibo countered that the plaintiffs invested heavily in developing patented innovations now allegedly being infringed. He said the PillarSalt Cash Management Solution would improve Nigeria’s cash handling system and boost the economy if deployed.

He blamed what he termed the selfish interests of some officials for blocking the technology but confirmed the plaintiffs are open to negotiation.

The case was adjourned to October 15 and 16, 2026, for trial if settlement talks fail.

In its claim before the court, Enterprise Logistics Speciale revealed that it developed several cash management technologies from 2011, including Mobile Smart Deposit, Mobile Cash Sorting and Processing Device, PillarSalt Cash Supply Chain, and Terminal Management System.

The firm stated that the innovations are covered by three patent certificates under the Patents and Designs Act.

The plaintiffs alleged that after sharing details with the defendants, the CBN issued Guidelines for Bank Neutral Cash Hubs (BNCH) that replicate their patented processes without consent.

They also accused the CBN of commercialising their inventions and failing to protect their rights as a regulator.

Accordingly, the plaintiffs are asking the judge to declare them exclusive owners of the patented technologies, restrain the defendants from using the inventions without written consent, compel NIBSS to activate PillarSalt on the Nigeria Central Switch within 30 days, nullify CBN’s BNCH Guidelines, and award N500 million for patent infringement, N200 million for breach of NDA, and N97.8 billion for losses since 2016.

In its amended defence, NIBSS denied liability. It said it did not infringe any patent or breach the NDA, and did not refuse to integrate the solution.

NIBSS argued that the plaintiffs seek exclusive rights that would create a monopoly and block other operators from the national payment infrastructure.

It added that integration decisions require regulatory and board approval.