Overview of the 2026 Fiscal Transparency Report
The United States Department of State released its 2026 Fiscal Transparency Report, which evaluated the fiscal transparency practices of 140 governments and entities. The report highlighted that Nigeria, along with 67 other countries, failed to meet the minimum fiscal transparency requirements. This assessment was based on the review period from January 1 to December 31, 2025.
The report emphasized the importance of fiscal transparency in promoting public access to government finances, strengthening accountability, and enhancing economic sustainability. It outlined several shortcomings in Nigeria’s public financial management, including the failure to publish the executive budget proposal within a reasonable period, deficiencies in the completeness of budget information, and discrepancies between actual revenues and expenditures and the enacted budget.
Key Findings from the Report
According to the report, while Nigeria made its enacted budget and end-of-year report widely accessible to the public, it did not publish its executive budget proposal within a reasonable period. Additionally, the budget documents did not provide a substantially complete picture of the government’s revenues and expenditures, nor did they break down expenditures to support executive offices in the budget.
The assessment also raised concerns about budget implementation, stating that actual revenues and expenditures did not reasonably correspond to those in the enacted budget. On public auditing, the report noted that Nigeria’s supreme audit institution did not meet international standards of independence and did not publish substantive reports, despite having access to the entire executed budget.
Economic Reactions and Expert Opinions
Economists have echoed the United States’ concerns, emphasizing that the continued rollover of budgets, weak disclosure of actual spending, and poor audit practices undermine confidence in Nigeria’s economy. Prof Franklin Ngwu, Director of the Lagos Business School Public Sector Initiative, pointed out that the confusion surrounding the current budget year reflects growing issues in Nigeria’s financial management.
Prof Akpan Ekpo, Professor of Economics and Public Policy at the University of Uyo, described the US report as fair, noting that Nigeria’s fiscal challenges extend beyond the issues highlighted by the assessment. He called for greater transparency in borrowing, procurement, revenue, and expenditure, urging the government and civil society to strengthen scrutiny of the budget process.
Dr Ayo Teriba, Chief Executive Officer of Economic Associates, highlighted the weakness in Nigeria’s fiscal reporting, emphasizing the need for the government to publish year-to-date budget performance before presenting a new budget proposal. Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, acknowledged the detailed nature of Nigeria’s budget documents but agreed that implementation remained a major weakness.
Recommendations for Improvement
The US Department of State recommended several measures for Nigeria to improve its fiscal transparency. These include making the executive budget proposal widely and easily accessible to the public, providing a substantially complete picture of government revenues and expenditures, ensuring actual revenues and expenditures correspond to those in the enacted budget, and publishing accessible information on public procurement contracts.
The report also stressed the importance of independent auditing and the need for the supreme audit institution to meet international standards of independence and publish audit reports on the government’s executed budget.
Global Context and Implications
The 2026 report placed considerable emphasis on whether publicly available budget documents provide a complete picture of government finances. According to the criteria, budgets should show planned expenditures and revenues, including natural resource revenues, with expenditures broken down by ministry and revenues broken down by source and type.
The US assessment also considered the role of supreme audit institutions in ensuring credible government financial reporting. Such institutions should be independent, have access to the executed budget, audit government spending, and verify annual financial statements. Their findings and recommendations should also be published within a reasonable period.
Countries Meeting and Failing the Requirements
The report stated that 73 governments met the minimum fiscal transparency requirements in the 2026 assessment, while 67 did not. Of the 67 that failed, 14 made significant progress towards meeting the requirements during the review period. Countries assessed as meeting the requirements included Ghana, Kenya, Rwanda, South Africa, Uganda, India, Indonesia, Morocco, Mauritius, Namibia, and Senegal.
Nigeria, along with several other countries, was listed among those that failed to meet the requirements. The list includes Afghanistan, Algeria, Angola, Bahrain, Bangladesh, Belize, Burma, Burundi, Cambodia, Cameroon, Central African Republic, Chad, China, Congo, Democratic Republic of the Congo, Republic of the Comoros, Djibouti, Dominican Republic, Ecuador, Egypt, Eswatini, Ethiopia, Gabon, The Gambia, Guinea, Guinea Bissau, Haiti, Iraq, Laos, Lebanon, Lesotho, Liberia, Libya, Madagascar, Malawi, Maldives, Mali, Marshall Islands, Mongolia, Mozambique, Nicaragua, Niger, Oman, Pakistan, Palestinian Authority, Papua New Guinea, Samoa, Sao Tome and Principe, Saudi Arabia, Sierra Leone, Somalia, South Sudan, Sudan, Suriname, Tajikistan, Tanzania, Togo, Tonga, Turkmenistan, Ukraine, Uzbekistan, Vietnam, Yemen, Zambia, and Zimbabwe.
Conclusion
The 2026 Fiscal Transparency Report underscores the need for Nigeria to address significant gaps in its fiscal transparency. While the country has made some progress in making its enacted budget and end-of-year report accessible, the report highlights critical deficiencies in the openness, completeness, and reliability of its public finances. The US assessment serves as a call to action for the Nigerian government to improve public disclosure of budget proposals, strengthen the completeness and reliability of fiscal information, enhance audit independence and transparency, and make procurement information accessible to the public.
