A new International Monetary Fund (IMF) report has highlighted deepening weaknesses in Nigeria’s budget execution system, warning that persistent gaps in planning and implementation are undermining fiscal stability and long-term development outcomes, according to The Guardian Nigeria.
The report, titled Budget Credibility in Sub-Saharan Africa, said Nigeria and several African countries continue to struggle with revenue shortfalls, weak expenditure control and repeated deviations from approved fiscal plans, leading to widening deficits and delayed infrastructure delivery.
It noted that Nigeria’s 2026 budget implementation has already been affected by structural issues, including delayed passage, overlapping budget cycles and optimistic revenue assumptions based on oil output and exchange rate projections that are not being met in practice.
The IMF further warned that chronic budget overruns and weak fiscal discipline are eroding investor confidence and weakening accountability, with capital projects often postponed or cut when revenue falls short, worsening infrastructure and social service gaps.