US Government Accuses Nigeria of Failing to Give Clear Account of Revenues, Spending

The United States Government has criticised Nigeria’s fiscal transparency record, saying the Federal Government has not provided sufficient information for citizens to clearly understand how public revenues are generated and how government funds are spent.

The assessment was contained in the 2026 Fiscal Transparency Report released by the US Department of State on Tuesday.

Although the report acknowledged that Nigeria had made some fiscal information available to the public, it said the information published by the government did not provide a complete picture of the country’s revenues and expenditures.

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According to the report, significant gaps remain in the presentation of Nigeria’s public finances, particularly regarding spending by executive offices and the relationship between approved budgets and actual revenue and expenditure 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,” the report stated.

US Raises Concerns Over Auditing, Procurement

The US government also raised concerns about Nigeria’s public audit system, saying the country’s supreme audit institution did not meet international standards for independence.

It further faulted the institution for failing to publish substantive audit reports despite having access to the government’s entire executed budget.

The report said a stronger and more independent auditing system would improve public scrutiny of government spending and help Nigerians determine whether appropriated funds were being used for their intended purposes.

Procurement transparency was another major concern highlighted in the report.

Washington said Nigeria continued to face challenges in making information about government contracts easily accessible to the public.

According to the assessment, the lack of readily available procurement information limits citizens’ ability to monitor how public contracts are awarded and implemented.

Nigeria Gets Credit for Debt, Natural Resource Transparency

Despite its criticism, the US government acknowledged areas where Nigeria had made progress.

The report noted that Nigeria had made information about its debt obligations publicly available, including major obligations linked to state-owned enterprises.

Nigeria was also commended for its natural resource contracting framework.

The US said the country had established legal criteria and procedures for awarding licences and contracts for natural resource extraction and generally followed the existing regulations in practice.

However, Washington said more needed to be done to make Nigeria’s public finances easier for citizens to understand and scrutinise.

It recommended that the Federal Government make its executive budget proposal widely and easily accessible, including through online platforms.

Tinubu Defends Fiscal Reforms

The report comes as President Bola Ahmed Tinubu continues to defend his administration’s economic and fiscal reforms, with transparency and fiscal discipline repeatedly presented as key components of the government’s programme.

While signing the 2025 Appropriation Act on February 28, 2025, Tinubu stressed the need for prudent management of public resources.

“We cannot spend what we do not have,” the President said.

He also directed government agencies to remain accountable for their spending, urging officials to focus on value for money.

“Hold every agency accountable for prudent spending and value-for-money initiatives,” he said.

The administration has since pursued reforms targeting government revenue, taxation, debt management and public financial administration.

For the 2026 fiscal year, the Federal Government projected total revenue of N34.33 trillion and expenditure of N58.18 trillion. Debt servicing was projected at N15.52 trillion, while capital expenditure was put at N26.08 trillion.

Tinubu said the figures reflected the administration’s priorities and promised stronger fiscal management.

“We will continue to reduce waste, strengthen controls, and ensure that every naira borrowed or spent delivers measurable public value,” he said.

Government Highlights Revenue Gains

The President has also continued to argue that his reforms have improved Nigeria’s fiscal position.

During a meeting with investors in May, Tinubu reiterated his commitment to fiscal discipline, transparency and policy consistency as his administration seeks to attract investment 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,” he said.

In his speech marking the second anniversary of his administration in May 2025, Tinubu said Nigeria’s fiscal position had improved, citing stronger revenue performance.

According to the President, the fiscal deficit declined from 5.4 per cent of GDP in 2023 to 3.0 per cent in 2024, while the government recorded more than N6 trillion in revenue in the first quarter of 2025.

The administration has attributed the improvement to reforms in public finance and revenue mobilisation, including tax reforms and changes in the oil and gas sector.

The Federal Government has repeatedly maintained that the reforms are necessary to broaden Nigeria’s revenue base and reduce dependence on borrowing.

Transparency Remains Key Challenge

The latest US assessment, however, suggests that increasing government revenue is only one part of the broader fiscal management debate.

Beyond how much revenue the government generates, the report emphasised the importance of how that revenue is reported, how expenditure is disclosed and whether citizens can easily compare approved budgets with actual spending.

The issue becomes increasingly important as Nigeria manages larger annual budgets and significant debt-servicing obligations.

While Tinubu has repeatedly called for prudent spending, the US report indicates that greater transparency in budget implementation, procurement and independent auditing remains necessary to strengthen public confidence and allow Nigerians to effectively scrutinise government finances.

As the Federal Government continues to implement its fiscal reforms, the challenge will be not only to increase revenue but also to ensure that citizens can clearly see where the money comes from, where it goes and whether public spending delivers the value promised.