30 states rank low in transparency, accountability in use of public funds — Report

Thirty of Nigeria’s 36 States scored below average on transparency and accountability in the use of public funds, according to a new subnational audit index released on Tuesday.

The findings are contained in the 2025 Subnational Audit Efficacy (SAE) Index published by the Paradigm Leadership Support Initiative (PLSI) and presented in Abuja on Tuesday.

According to the report, six States scored above average, with Ekiti State topping the ranking at 72%. Gombe State and Yobe State followed jointly in second place with 68% each, while Adamawa State 57%, Delta State 53^ and Osun State 53% completed the top performers.

At the bottom of the ranking, Abia State and Rivers State placed last, both scoring 9%. Other low-ranking States included Benue State 10% Taraba State 14%, Imo State 18% and Kwara State 19%, while the remaining States recorded scores ranging between 21% and 48%.

The index, PLSI’s flagship annual scorecard, assesses public finance management and policy implementation across the 36 states through the lens of audit processes and key actors in the public audit cycle.

The report highlighted structural deficiencies in audit independence and oversight. Only five states have implemented financial autonomy for the Office of the Auditor-General, while 12 states have established administrative independence for the office, reflecting only marginal progress from 2024, with just one additional state advancing reforms.

Transparency gaps remain pronounced. It found that 18 states failed to publish audit reports on state accounts, while 21 States did not publish audit reports on local government accounts. However, this represents a slight improvement from 2023, when 21 States failed to publish state audit reports.

The report further found that 18 States published Citizens’ Accountability Reports in 2024, up from 11 in 2023 and eight in 2022.

Oversight mechanisms were also found to be weak. Only three states currently have effective Public Accounts Committees (PACs), a slight increase from two in 2023 but still below the five recorded in 2022. Similarly, just four states demonstrated meaningful involvement of civil society and media actors in audit processes, up marginally from three in the previous year.

PLSI said the slow pace of reform underscores the need for stronger political commitment and sustained institutional action to safeguard audit independence as a cornerstone of accountability and development-oriented governance.

The 2025 edition introduced a modified methodology, the first in six years, incorporating public audit functions at the local government level. The assessment weighted state-level performance at 80 percent and local government performance at 20 percent, drawing on data from audit institutions, Public Accounts Committees, Offices of the Accountant-General, as well as civil society and media organisations.

Speaking at the launch, Olusegun Elemo, PLSI’s Executive Director said earlier gains in fiscal transparency driven by the $1.5bn World Bank-supported States Fiscal Transparency, Accountability and Sustainability programme between 2018 and 2022 had not been sustained. He noted that subsequent assessments in 2022, 2023 and 2024 showed stagnation, deeper decline and further weakening of accountability systems, respectively.

Despite the generally weak performance, the 2025 index however recorded a modest performance. After two consecutive years of decline — from 31.81% in 2022 to 30.58% in 2023 and 29.47 percent in 2024, the average score rose to 34.5 percent in 2025, representing a 5.03 percentage point improvement.

According to Elemo, while the progress signals a positive shift in strengthening audit and public financial management systems, its true value lies in whether it translates into tangible improvements in service delivery, equitable resource allocation, and the everyday lives of citizens.

To address the gaps, the report urged state executives ,including governors and ministries of finance, budget and planning, to fully implement financial autonomy for Offices of the Auditor-General through first-line charge mechanisms, ensure timely release of funds and establish audit service commissions or boards to guarantee administrative independence.

It also recommended the mandatory and timely publication of audit reports and Citizens’ Accountability Reports for both state and local government accounts. State audit offices were advised to shift from compliance-based audits to performance and value-for-money audits across key sectors such as health, education, infrastructure, gender and climate.

In addition, Public Accounts Committees were urged to strengthen oversight by ensuring prompt review of audit reports and enforcing the implementation of audit recommendations, a critical step given the limited effectiveness of such committees across most states.

PLSI noted that while incremental gains are evident, Nigeria’s subnational governments must accelerate reforms to build resilient accountability systems capable of supporting sustainable development and restoring public trust in the management of public resources.