State Department says Nigeria made no significant progress in opening public finances or strengthening financial management in 2025

Nigeria has failed to meet the minimum fiscal transparency requirements set by the United States Department of State for the second consecutive year, with Washington saying the country made no significant progress in improving public financial management or providing greater access to information on government finances in 2025.

The assessment is contained in the 2026 Fiscal Transparency Report, released by the U.S. Department of State on Tuesday.

The report evaluated 139 governments and the Palestinian Authority on the transparency of their public finances, including the availability and reliability of budget information, the openness of government financial processes and the effectiveness of financial oversight mechanisms.

According to the report, only 73 of the governments assessed met the minimum fiscal transparency requirements.

Another 67 governments failed to meet the standards. Of those, 14 were judged to have made significant progress during the assessment period, while 53 countries, including Nigeria, were classified as having made no significant progress.

The latest assessment covers information gathered between January 1 and December 31, 2025, by the U.S. Embassy in Abuja, other U.S. government agencies, international organisations and civil society groups.

The State Department's findings come against the backdrop of continuing concerns in Nigeria over budget implementation, public expenditure and access to government financial information.

The Federal Government is currently managing three national budgets — the 2024, 2025 and 2026 budgets — amid ongoing debates over implementation and the country's broader fiscal management.

Fiscal transparency is considered an important measure of how openly governments disclose information about public revenue, expenditure, debt and the use of taxpayers' money. It also allows citizens, lawmakers, civil society organisations and other stakeholders to scrutinise government spending and assess whether public resources are being properly managed.

The U.S. assessment noted that countries that fail to meet the minimum requirements are not necessarily being accused of corruption. Rather, the report focuses on whether governments make sufficient financial information publicly available and maintain systems that allow meaningful oversight of public resources.

Nigeria's failure to record significant progress for a second consecutive year could therefore add to calls for stronger disclosure mechanisms and more effective public financial management.

Presidency reacts

The Presidency, however, moved quickly to respond to the report late Tuesday, stressing that transparency, accountability and effective public financial management remain priorities of the administration.

The government's position suggests that it remains committed to strengthening the management of public resources, even as the U.S. assessment highlights gaps in the country's fiscal transparency framework.

The latest report is likely to intensify scrutiny of Nigeria's budgetary processes, particularly the publication of financial information, implementation of approved budgets and mechanisms for monitoring government expenditure.

For a country facing significant fiscal pressures and increased demands for public services, greater transparency in the management of public funds remains a key issue for citizens, investors and development partners.

The U.S. report therefore places renewed attention on Nigeria's efforts to improve the openness and accountability of its public finances as the government manages competing fiscal demands and implements its current budgetary programmes.