IMF Warns Unrealistic Budgets Fuel Widening Deficits in Sub-Saharan Africa

A new IMF study highlights persistent gaps between planned budgets and actual spending across Sub-Saharan Africa. It finds deficits often exceed targets due to optimistic revenue forecasts and overspending on wages, subsidies and social transfers. The research, covering 39 countries from 2021 to 2024, shows capital projects are routinely under-executed when revenues fall short or external financing is delayed. Interest payments are often underestimated, adding to fiscal pressures and widening deficits. Countries with stronger fiscal institutions and IMF-supported programmes experienced smaller budget slippages. The report also warns that spending spikes before elections and weaker administrative capacity in low-income states worsen deviations. Local reports indicate Nigeria’s planned borrowing for 2026 rose to ₦29.2 trillion from an earlier ₦17.9 trillion projection. The budget size was increased to ₦67.4 trillion, raising concerns over long-term debt sustainability.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.