Nigeria has failed the US fiscal transparency test for the second year in a row.
A new report from the United States Department of State says the country made no significant progress in improving public financial management.
The 2026 Fiscal Transparency Report reviewed 139 governments and the Palestinian Authority.
Only 73 met the basic transparency standards.
Nigeria ranked among 53 countries that showed no measurable progress during the review period.
The assessment covered January 1 to December 31, 2025.
The findings come as concerns continue to grow over Nigeria’s budget management.
The US report raised serious questions about how the government presents its finances.
According to the report, Nigeria’s budget documents did not clearly show how much money the government expected to receive or spend.
The documents also failed to provide a complete picture of the nation’s finances.
The State Department noted that actual government revenue and spending did not closely match the figures approved in the budget.
That marks a notable change from the 2025 assessment.
Last year, US officials said Nigeria’s budget documents generally provided a reliable picture of planned revenue and expenditure.
This time, the assessment was far less favourable.
The report also criticised the timing of Nigeria’s budget proposal.
While the government published its enacted budget and end-of-year figures online, officials did not release the executive budget proposal before lawmakers approved it.
The US said governments should publish such proposals at least one month before the new fiscal year.
That would give citizens and lawmakers enough time to examine the figures.
Nigeria’s audit system also came under scrutiny.
The report questioned the independence and performance of the Office of the Auditor-General of the Federation.
Although the office had access to budget execution data, the US said it did not publish enough substantive audit reports.
The report also raised concerns about public procurement.
Details surrounding some government contracts remain difficult for the public to access.
Natural resource deals also attracted criticism.
The US said authorities often withhold important details about extraction licences after awarding them.
These details include the location, resources involved, contract duration and companies that receive the licences.
The report also examined Nigeria’s disclosure of government loans and debt obligations.
While Nigeria publishes general debt information, the US said the updated standards require more details about loan terms and collateral.
The State Department stressed that fiscal transparency goes beyond publishing figures.
It said openness allows citizens to scrutinise government spending and hold leaders accountable.
The report also linked transparency to market confidence, economic growth and efforts to prevent corruption.
For Nigeria, the latest assessment presents another major challenge as the government faces pressure to improve accountability and public financial management.
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