The United States Department of State's 2026 Fiscal Transparency Report has placed Nigeria among 53 nations that made no measurable progress in fiscal transparency during the review period from January 1 to December 31, 2025. This marks the second consecutive year Nigeria has failed to meet minimum fiscal transparency requirements, with the report noting no significant improvement in public financial management or openness of public finances.
US Report Evaluates 139 Governments
The State Department assessed 139 governments alongside the Palestinian Authority, finding that only 73 met basic benchmarks. Nigeria was grouped with 53 nations that showed no measurable progress, a downgrade from the previous year when US evaluations noted that Nigeria's budget documents provided a substantially complete picture of planned expenditures and revenue and were generally reliable.
The 2026 report issued a stern critique of Nigeria's budgetary procedures, stating that national spending frameworks remain vague regarding revenue streams and allocations. Federal disclosures failed to offer a comprehensive accounting of national finances, with the report specifically noting: "Budget documents did not provide a substantially complete picture of the government's revenues and expenditures, or break down expenditures to support executive offices in the budget."
Growing Gap Between Planning and Implementation
The report also highlighted a growing gap between fiscal planning and actual implementation, emphasizing that "actual revenues and expenditures did not reasonably correspond to those in the enacted budget." This assessment represents a shift from 2025, when US evaluations were more favorable.
While acknowledging that Nigeria made its enacted budget and end-of-year figures accessible online, the report faulted the executive branch for failing to release its budget proposal prior to legislative approval. Under international benchmarks, executive proposals should be published at least one month before the start of the fiscal year to facilitate meaningful public debate.
Auditor-General's Office Criticized
The report further criticized the independence and output of Nigeria's Office of the Auditor-General of the Federation (OAuGF). Despite having access to executed budget data, the supreme audit institution failed to publish substantive reports or adhere to international independence standards. The report stated: "The supreme audit institution should meet international standards of independence, audit the executed budget, and verify the annual financial statements. The results of such audits… should be published within a reasonable period."
Procurement and Natural Resources Transparency Gaps
On public procurement and natural resources, the assessment found that details surrounding government contracts remain shielded from public view. While legal criteria for awarding natural resource extraction licenses exist and are followed in practice, key concessions—including geographical parameters, resource scope, contract duration, and awarded entities—are routinely withheld following decision-making.
Furthermore, updated State Department reporting standards require governments to publish sovereign loan terms, collateralized assets, and debt liabilities. While Nigeria disclosed general debt obligations, the specific terms of these loans were not fully evaluated under the updated criteria.
The findings come amid ongoing domestic concerns regarding budget execution, particularly as federal authorities operate multiple budget cycles simultaneously. In an initial reaction, the Presidency maintained that transparency, accountability, and effective public financial management remain primary commitments of the federal administration.
Emphasizing that fiscal openness is fundamental to economic stability, market confidence, and corruption prevention, the State Department concluded: "Transparency provides citizens a window into government budgets and those citizens, in turn, hold governments accountable. It underpins market confidence and growth."
