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.
The report assessed 139 governments and the Palestinian Authority on their fiscal transparency between January 1 and December 31, 2025.
Nigeria was among 67 governments that failed to meet the minimum requirements.
The country was also listed among governments that made “no significant progress” in addressing previously identified fiscal transparency gaps.
The US assessment examined whether governments made key financial information accessible to the public.
This included budget documents, debt obligations, audit reports, natural resource contracts and public procurement information.
According to the report, fiscal transparency is critical for effective public financial management, investor confidence and economic sustainability.
It also allows citizens to scrutinise how public funds are collected and spent.
The US requires governments to make executive budget proposals, approved budgets and end-of-year financial reports publicly accessible within specified timelines.
Governments are also expected to disclose their debt obligations, including debts linked to major state-owned enterprises.
Such information should be published on public websites and updated at least annually.
The report further assessed whether budget documents provide a complete picture of government revenue and spending.
This includes revenue from natural resources, with expenditure broken down by ministry and revenue identified by source and type.
The US also examined the reliability of budget figures, noting that actual government revenues and expenditures should broadly correspond with approved budgets.
Where major differences occur, governments are expected to explain and publicly disclose them.
The independence and effectiveness of supreme audit institutions were also assessed.
The review considered whether such institutions could properly audit government financial statements and publish their findings.
For countries with significant natural resource activities, the assessment examined whether the rules for awarding extraction licences and contracts were publicly available and legally backed.
However, the US stressed that failing the fiscal transparency test should not be interpreted as a corruption ranking.
It said failure to meet the requirements does not automatically mean a government has significant corruption.
Likewise, meeting the requirements does not necessarily indicate a low level of corruption.
Of the 140 governments assessed, 73 met the minimum fiscal transparency requirements, while 67 failed.
The report noted that 14 of the governments that failed had nevertheless made significant progress.
The 2026 assessment also introduced tougher requirements for the public disclosure of sovereign loans to foreign borrowers.
Governments are now expected to disclose the terms and conditions of such loans, including liabilities and collateralised assets.
