Nigeria has failed to meet the United States’ minimum fiscal transparency requirements, with economists warning that weaknesses in budget reporting, implementation, auditing and public procurement could undermine investor confidence.
The finding was contained in the 2026 Fiscal Transparency Report of the US Department of State, published on August 11 and covering the period from January 1 to December 31, 2025.
The report placed Nigeria among 67 of 140 governments and entities that failed to meet the minimum requirements.
Of the 67 governments that failed, 14 were judged to have made significant progress towards addressing identified deficiencies. Nigeria, however, was listed among those that made no significant progress.
The US assessment acknowledged that Nigeria made its enacted budget and end-of-year report publicly accessible, including online.
It also noted that the government made information on debt obligations, including major state-owned enterprise debt, publicly available.
However, the report said Nigeria failed to publish its executive budget proposal within a reasonable period and that its budget documents did not provide a substantially complete picture of government revenues and expenditures.
The assessment also raised concerns about discrepancies between actual revenues and expenditures and figures contained in the enacted budget.
Another major concern was the independence of Nigeria’s supreme audit institution.
According to the report, the institution did not meet international standards of independence and did not publish substantive reports, although it had access to the entire executed budget.
The US also faulted Nigeria for failing to make accessible information on public procurement contracts available to citizens.
The report stressed that fiscal transparency was important for effective public financial management, market confidence and economic sustainability.
It also clarified that the assessment should not be interpreted as a corruption rating, saying failure to meet minimum fiscal transparency requirements did not necessarily mean that a government was significantly corrupt.
Economists raise concerns
Economists who reacted to the report agreed that Nigeria still had significant weaknesses in fiscal management.
Director of the Lagos Business School Public Sector Initiative, Prof Franklin Ngwu, said uncertainty over budget implementation was troubling.
“This is 2026. I’m not even sure of the budget we are using currently in Nigeria. Are we using 2024? Are we using 2025? Are we using 2026? Nobody is sure,” he said.
Ngwu warned that the situation could make foreign investors more cautious about Nigeria.
“As long as we are not doing well in this area with this recent development, foreign development, FDI, people that want to invest in Nigeria will be cautious,” he said.
Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, described the US assessment as fair.
“The report is fair. We don’t even need U.S. support. Even within Nigeria, we know that there’s a problem with the fiscal side,” Ekpo said.
He called for greater transparency in government borrowing, procurement, revenue and expenditure, as well as reforms to limit political interference in the budget process.
Dr Ayo Teriba, Chief Executive Officer of Economic Associates, said government should publish regular budget performance reports so citizens and investors could determine how appropriated funds were actually spent.
However, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the government deserved credit for making detailed budget information available.
“The Nigerian government budget is one of the most detailed, and it’s in the public space,” Yusuf said.
He nevertheless acknowledged that budget implementation still required reforms.
US lists reforms for Nigeria
The US Department of State recommended that Nigeria make its executive budget proposal widely accessible, including online, and provide a substantially complete picture of government revenues and expenditure.
It also urged the country to ensure that actual revenues and expenditures correspond reasonably with approved budget figures.
On auditing, the US called for Nigeria’s supreme audit institution to meet international standards of independence and publish substantive reports on the executed budget.
The US further recommended the publication of accessible information on public procurement contracts.
The findings come as Nigeria continues to pursue fiscal and macroeconomic reforms. The IMF’s 2026 assessment acknowledged improvements in macroeconomic stability but also identified continuing fiscal and structural challenges facing the country.
For Nigeria, the latest US assessment creates pressure for stronger disclosure and accountability in public finances.
While the country has made progress in publishing some budget and debt information, the report indicates that transparency gaps remain in the preparation and implementation of budgets, auditing and procurement.
The Ministry of Finance said it would respond to the report at a later date.
