NEWS
U.S Faults Nigeria’s Fiscal Transparency, Demands Greater Disclosure of Public Funds
The United States Government has raised fresh concerns over Nigeria’s fiscal transparency, faulting the Federal Government for failing to provide sufficient information for citizens to clearly understand how public revenues are generated and how government funds are spent.
The concerns were contained in the 2026 Fiscal Transparency Report released by the US Department of State on Tuesday, in an assessment that highlighted both areas of progress and significant gaps in Nigeria’s management and disclosure of public finances.
The report acknowledged that Nigeria had made some fiscal information available to the public but said the documents published by the government did not provide a sufficiently complete picture of the country’s revenue and expenditure.
According to the assessment, important gaps remain in the way Nigeria presents information about its public finances, particularly regarding the level of detail available on spending by executive offices and the relationship between the government’s approved budget and the actual revenue and expenditure recorded during implementation.
“Actual revenues and expenditures did not reasonably correspond to those in the enacted budget. The government did not publish accessible information on public procurement contracts,” it stated.
The US government’s assessment places renewed attention on the ability of Nigerians to track public money from the point at which it is appropriated to the stage where it is actually spent.
The report also examined Nigeria’s public auditing system, raising concerns about the independence of the country’s supreme audit institution.
It said the institution did not meet international standards for independence and criticised it for failing to publish substantive reports despite having access to the government’s entire executed budget.
According to the report, stronger and more independent auditing would improve public scrutiny of government spending and enable citizens to determine whether funds approved for specific programmes and projects are ultimately used for their intended purposes.
Public procurement was another major area of concern identified by Washington.
The report said Nigeria continued to face challenges in ensuring that information on government contracts is readily accessible to the public. The lack of easily available procurement information, it noted, limits citizens’ ability to monitor how contracts are awarded, how much they cost and whether they are properly implemented.
Despite the criticism, the United States did not portray Nigeria as having failed to make progress across all areas of fiscal transparency.
The report acknowledged that Nigeria had made information concerning its debt obligations publicly available, including significant debt obligations linked to state-owned enterprises.
Nigeria also received positive recognition for its natural resource contracting framework.
The US government said Nigeria had established legal criteria and procedures governing the award of licences and contracts for natural resource extraction, adding that the government generally followed the existing regulations in practice.
However, Washington maintained that more work was required to ensure that Nigeria’s public finances are presented in a manner that ordinary citizens, civil society organisations, investors and other stakeholders can easily understand and scrutinise.
Among its recommendations, the US government urged the Federal Government to make its executive budget proposal widely and easily accessible to the public, particularly through online platforms.
The assessment comes against the backdrop of the administration of President Bola Ahmed Tinubu, which has repeatedly presented fiscal discipline, revenue mobilisation and transparency as key components of its economic reform agenda.
At the signing of the 2025 Appropriation Act on February 28, 2025, Tinubu stressed the importance of responsible management of public resources.
“We cannot spend what we do not have,” Tinubu said.
The President also called for greater accountability across government agencies, urging officials to ensure that public resources are deployed prudently and produce measurable value.
“Hold every agency accountable for prudent spending and value-for-money initiatives,” the President said.
Since assuming office, the Tinubu administration has introduced and continued reforms targeting government revenue, taxation, debt management and public financial administration, with the stated objective of strengthening the country’s fiscal position and reducing dependence on borrowing.
The government’s 2026 budget also reflects the scale of the financial commitments confronting the country.
In his budget speech, Tinubu projected total revenue of ₦34.33 trillion and expenditure of ₦58.18 trillion. Debt servicing was estimated at ₦15.52 trillion, while capital expenditure was projected at ₦26.08 trillion.
The President said the figures reflected the administration’s priorities and pledged stronger fiscal management as the government sought to reduce waste and improve the impact of public spending.
“We will continue to reduce waste, strengthen controls, and ensure that every naira borrowed or spent delivers measurable public value,” he said.
In May, Tinubu also reiterated his commitment to fiscal discipline and transparency during an engagement with investors as the Federal Government intensified efforts to attract investment and improve confidence in Nigeria’s economy.
The meeting formed part of the administration’s broader engagement with international investors over the direction of its economic reforms.
At the meeting, the President maintained that his administration’s policies were designed to create a more stable economic environment while strengthening confidence in Nigeria’s financial system.
He also emphasised the importance of policy consistency as the government works to increase revenue and strengthen the economy.
“The focus remains on policy stability and diligent execution to ensure these strategic shifts translate into concrete benefits for all Nigerians,” the President said.
Finance officials at the meeting similarly highlighted the government’s efforts to improve fiscal discipline and transparency, while the administration continued to argue that its economic reforms had begun producing stronger revenue performance.
In his speech marking the second anniversary of his administration in May 2025, Tinubu said Nigeria’s fiscal position had improved, pointing to stronger government revenue and a reduction in the fiscal deficit.
According to the President, the fiscal deficit fell from 5.4 per cent of GDP in 2023 to 3.0 per cent in 2024.
He also said the government generated more than ₦6 trillion in revenue during the first quarter of 2025, attributing the improvement to reforms targeting government finances and revenue mobilisation.
The administration has continued to pursue additional revenue through tax reforms and changes in the oil and gas sector, arguing that the measures are necessary to create a stronger revenue base and reduce Nigeria’s dependence on borrowing.
But the latest U.S assessment suggests that raising revenue alone is not enough to address the broader issue of fiscal accountability.
For citizens and other stakeholders, the report underscores the importance of knowing not only how much money the government generates but also how that money is allocated, where it is ultimately spent and whether actual expenditure corresponds with approved budgets.
The issue becomes even more significant as Nigeria manages increasingly large annual budgets while facing substantial debt-servicing obligations.
With the 2026 budget involving tens of trillions of naira in projected revenue and expenditure, the ability of independent institutions, the media and citizens to monitor public spending remains a crucial part of ensuring accountability.
Tinubu had also emphasised this principle while signing the 2025 budget, stressing that government spending must be treated as a commitment to Nigerians rather than simply a collection of financial figures.
“A budget is not just numbers, it is a promise, and we must honour it with discipline,” he said.
The U.S report therefore presents a mixed assessment of Nigeria’s fiscal transparency: while progress has been recognised in areas such as public debt disclosure and natural resource contracting, Washington is calling for broader access to budget information, stronger independent auditing and greater transparency in public procurement.
For the Federal Government, the challenge now extends beyond increasing revenue to demonstrating, in clear and accessible terms, how every naira raised, borrowed and spent is accounted for.