ABUJA — Nigeria failed to meet the United States government’s minimum fiscal transparency requirements in 2025,  according to the 2026 Fiscal Transparency Report released by the US Department of State.

Nigeria was among 67 of the 140 governments assessed that failed to meet the minimum requirements for fiscal transparency during the review period covering January 1 to December 31, 2025.

The report also classified Nigeria among governments that made “no significant progress” in addressing deficiencies identified in previous assessments.

The US fiscal transparency assessment examines whether governments make key financial information available to the public, including budget documents, debt obligations, audit reports, natural resource contracts and public procurement information.

According to the US Department of State, transparent fiscal practices are essential to effective public financial management, investor and market confidence, economic sustainability and government accountability.

The assessment requires governments to make executive budget proposals, enacted budgets and year-end financial reports publicly accessible within specified timelines.

It also requires governments to disclose their debt obligations, including liabilities associated with major state-owned enterprises, through publicly accessible platforms that are updated at least annually.

Budget Information Under Scrutiny

The report said governments should provide the public with a substantially complete picture of planned revenues and expenditures, including income generated from natural resources.

Budget documents are also expected to provide expenditure details by ministry and revenue information by source and type, as well as allocations to and earnings from state-owned enterprises.

The US assessment further examined whether budget figures are reliable, including whether actual government revenues and expenditures correspond with approved budgets.

Where significant differences occur between approved and actual figures, governments are expected to explain and publicly disclose the reasons for the deviations.

The report also assessed the independence and effectiveness of supreme audit institutions, including their ability to audit annual government financial statements and publish their findings.

Natural Resources, Procurement Also Assessed

For countries with significant natural resource extraction activities, the assessment considers whether the criteria and procedures for awarding extraction contracts and licences are publicly available and supported by relevant laws or regulations.

Public disclosure of procurement information is also part of the broader fiscal transparency framework.

The US government said these requirements are intended to enable citizens, investors and other stakeholders to understand how public resources are raised, allocated and spent.

67 Countries Fail Assessment

Of the 140 governments assessed in the 2026 report, 73 met the minimum fiscal transparency requirements, while 67 did not.

However, the report noted that failure to meet the requirements should not automatically be interpreted as evidence of corruption.

The US Department of State stressed that failing the assessment does not necessarily mean a government has significant corruption, just as meeting the requirements does not necessarily indicate that a country has a low level of corruption.

Of the 67 governments that failed the assessment, 14 were found to have made significant progress in addressing identified shortcomings.

Nigeria was not among those making significant progress during the review period.

New Disclosure Requirement

The 2026 assessment introduced an additional requirement concerning sovereign lending.

Governments are now expected to publicly disclose the terms and conditions of sovereign loans extended to foreign borrowers, including information on associated liabilities and collateralized assets.

The latest assessment therefore places greater emphasis on the public availability, completeness and reliability of government financial information.

For Nigeria, the findings highlight the need for stronger disclosure of public finances, clearer budget reporting, improved debt transparency and greater accessibility of fiscal information to citizens and other stakeholders.