By Festus Damilare Ukolo | Fact Frontier.
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A recent official report released on September 23 2025 from the United States Department of State has pointed to a significant lack of transparency in how the Nigerian government awards public contracts. While the report acknowledged strengths in Nigeria's budget management, it identified the failure to publish accessible information on procurement deals as a major flaw, placing Nigeria among dozens of African nations needing to improve fiscal openness.
This finding has sparked a conversation about the progress of Nigeria's long-standing efforts to reform its public procurement system, a system historically weakened by corruption and inefficiency.
What the U.S. Report Found
The U.S. Department of State releases an annual Fiscal Transparency Report examining government practices around the world. In the 2025 report, which reviewed the period up to December 31, 2024, the U.S. government assessed Nigeria against key transparency standards.
The review presented a mixed picture. On the positive side, it found that Nigeria's budget documents were widely available to the public, provided a clear picture of government plans, and were generally reliable. Information on the country's debt obligations was also made public.
However, the report highlighted one critical area where Nigeria fell short:
The government did not publish accessible information on public procurement contracts.This means that details about who is awarded government contracts, for what value, and under what terms, are not easy for the public to find. The report recommended that Nigeria should focus on publishing this procurement information to improve transparency.
A Long-Standing Challenge for Nigeria
The issue of opaque procurement is not new. Research institutions have long documented the challenges. According to the Brookings Institution,
public procurement in Nigeria involves a very large amount of money, estimated at between 10% and 25% of the country's entire economic output (GDP).Because so much money is involved, the process is highly susceptible to corruption.
Successive Nigerian governments have tried to fix the system. A major step was the passage of the Public Procurement Act in 2007, which was meant to establish clear rules and oversight bodies. However, analysts at Brookings note that reforms at the federal level have been "slow and incoherent". The law itself has faced challenges due to "political interference, inadequate monitoring and evaluation of procurement projects".
Signs of Hope at the State Level
While the federal government struggles, some Nigerian states are showing the way forward by adopting technology. States like Edo, Kaduna, and Ekiti have moved their procurement processes online.
Edo State, for example, transitioned from a paper-based system to an electronic procurement platform in 2021. This system allows the state to publish details of contracts in a single, public online portal. Henry Idogun, the Managing Director of Edo State's Public Procurement Agency, explained the benefit simply:
Human interference in public procurement is the root of corruption. An e-government procurement system can help address that.
The state has now published data on hundreds of processes worth billions of Naira. Civil society groups and journalists are being trained to use this data to monitor projects, which helps hold the government accountable.
The Real-World Impact and International Partnerships
The lack of transparency in procurement is not just a bureaucratic issue; it has real consequences. It can lead to corruption, where public funds are diverted for private gain. A recent example of this is a case handled by the U.S. Department of Justice, which involved bribes paid to a former Nigerian oil minister for lucrative contracts. In February 2025, the U.S. announced it would transfer $52.88 million in forfeited corruption proceeds back to Nigeria. These funds, stolen from the Nigerian people, will be used for electrification projects and counter-terrorism efforts.
The United States has expressed its commitment to supporting transparency in Nigeria. In a past editorial, the U.S. Ambassador to Nigeria stated,
The U.S. Embassy stands ready to support Nigerian voices pressing the fight against corruption in Nigeria.This support includes programs that work with government agencies and civil society to strengthen fiscal responsibility.
In the end, the U.S. Department of State's report confirms that Nigeria still has work to do to make its public contracting truly transparent. The federal government's slow progress contrasts with innovations seen in states like Edo, suggesting that solutions are possible with political will and technological investment. As Nigeria continues its fight against corruption, making contract information open and accessible remains a crucial step toward ensuring that public funds are used for the benefit of all Nigerians.
