World Bank has disclosed that Nigeria’s 36 states recorded a 93 per cent increase in revenue between 2023 and 2025, while education’s share of their total expenditure declined.
Gatekeepers News reports that the bank disclosure in its latest Nigeria Development Update, which examined how public revenues influenced spending priorities across the country.
According to the report, aggregate state revenues increased by approximately 93 per cent in real terms during the period, while expenditure rose by 92 per cent.
The institution attributed the revenue growth partly to exchange-rate reforms, petrol subsidy removal, improved revenue administration and increased allocations from the Federation Account.
States also benefited from refunds, the settlement of longstanding federal obligations, intervention funds and stronger Value Added Tax collections.
However, education’s share of total state expenditure fell from 14.9 per cent in 2021 to 12.1 per cent in 2025.
The report showed that health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent over the same period.
Capital expenditure increased, accounting for 61 per cent of total state spending, compared with 46 per cent previously. Transport infrastructure recorded the largest increase, alongside spending on housing, agriculture and other economic investments.
The report said the additional revenue provided states with an opportunity to improve infrastructure, education, healthcare and water services. It also emphasised the importance of spending efficiency, accountability and improved service delivery in ensuring that public resources benefit Nigerians.
World Bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue. However, it stressed that stronger investment in human capital would be necessary to translate economic reforms into sustainable employment and improved living standards.
The report projected that Nigeria’s economy would grow by an average of 4.4 per cent between 2026 and 2028, while inflation was expected to decline gradually to about 12 per cent by 2028. These projections depend on sustained economic reforms, improved public service delivery and conditions that support private-sector growth and job creation.
