Economists have supported the United States’ assessment that Nigeria failed to meet minimum fiscal transparency requirements, warning that weaknesses in budget implementation, public financial disclosure and audit practices could hurt investor confidence and the country’s economic outlook.
Their reactions followed the 2026 Fiscal Transparency Report released by the US Department of State, which listed Nigeria among 67 governments that did not meet the minimum requirements and said the country made no significant progress in addressing the identified shortcomings during the review period.
The report, published on August 11, 2026, assessed fiscal practices between January 1 and December 31, 2025 across 140 governments and entities, including the Palestinian Authority.
According to the US assessment, Nigeria made its enacted budget and end-of-year report publicly accessible, including online, and also disclosed information on debt obligations, including major state-owned enterprise debt.
However, the report identified several weaknesses, including the failure to publish the executive budget proposal within a reasonable time, incomplete budget information, differences between actual revenues and expenditures and the approved budget, inadequate independence of the supreme audit institution and the absence of accessible public procurement contract information.
The report stated that Nigeria’s budget documents did not provide a substantially complete picture of government revenues and expenditures and did not adequately break down spending supporting executive offices.
It also noted that actual revenues and expenditures did not reasonably correspond with the figures contained in the enacted budget.
On auditing, the US Department of State said Nigeria’s supreme audit institution had access to the executed budget but did not meet international standards of independence and did not publish substantive audit reports.
The assessment acknowledged that Nigeria has a legal framework governing its sovereign wealth fund and follows regulations for awarding natural resource extraction contracts and licences.
Nevertheless, it found that information on public procurement contracts was not made accessible to the public.
The United States stressed that the report is not a corruption ranking and that failing to meet the minimum fiscal transparency requirements does not necessarily mean a government is significantly corrupt.
Economists who spoke to The PUNCH said the findings reflect long-standing weaknesses in Nigeria’s public financial management.
Director of the Lagos Business School Public Sector Initiative, Prof. Franklin Ngwu, said the report echoed concerns repeatedly raised by Nigerians about budget management.
He questioned the clarity of the country’s current budget framework, noting that parts of the 2025 budget had been rolled over into 2026, creating uncertainty in fiscal management.
Ngwu warned that such weaknesses could affect Nigeria’s reputation and make foreign direct investors more cautious.
He called for urgent reforms and urged President Bola Tinubu to give greater attention to fiscal management and transparency.
Professor of Economics and Public Policy at the University of Uyo, Prof. Akpan Ekpo, described the US assessment as fair, arguing that Nigeria’s fiscal problems go beyond the issues highlighted in the report.
Ekpo said the country needs greater transparency in borrowing, procurement, revenue and expenditure, and called for broader scrutiny of the budget process by government and civil society.
Chief Executive Officer of Economic Associates, Dr. Ayo Teriba, said the repeated extension of budget implementation timelines demonstrates weaknesses in fiscal reporting.
He argued that government should publish year-to-date budget performance reports before presenting new budget proposals so that citizens and investors can assess how previous appropriations were implemented.
However, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said the Federal Government deserves some credit for making detailed budget documents publicly available, although he agreed that implementation remains a major challenge.
The economists generally called for stronger budget implementation, independent auditing, transparent procurement disclosures and regular publication of actual revenue and expenditure reports.
The US Department of State recommended that Nigeria publish its executive budget proposal widely and in good time, provide a substantially complete picture of government finances, ensure actual revenues and expenditures align with the approved budget, strengthen the independence of the audit institution and publish accessible information on public procurement contracts.
The report said 73 governments met the minimum fiscal transparency requirements, while 67 failed. Of those that failed, 14 made significant progress, but Nigeria was among the countries that did not.
For Nigeria, the assessment presents a mixed picture: while the country received credit for publishing its enacted budget, end-of-year report and debt information, the US concluded that major gaps remain in the openness, completeness and reliability of its public finances.
Under the US framework, Nigeria’s classification as making no significant progress means it did not satisfactorily address a key deficiency that prevented it from meeting the minimum fiscal transparency requirements during the review period.
