The World Bank has reported that revenues across Nigeria’s 36 states increased by 93 per cent between 2023 and 2025, while education accounted for a smaller proportion of their total expenditure.
The findings were contained in the bank’s latest Nigeria Development Update, which examined how increased public revenues have affected spending priorities across the federation.
The report was made available to the News Agency of Nigeria (NAN) by the World Bank in Washington, DC.
According to the report, the combined revenues of the states grew by approximately 93 per cent in real terms during the period, while expenditure rose by 92 per cent.
The bank attributed the increase partly to exchange-rate reforms, the removal of the petrol subsidy, improved revenue administration and higher allocations from the federation account.
It added that states benefited from refunds, the settlement of longstanding federal obligations, intervention funds and stronger value-added tax collections.
Despite the increase in revenue, education’s share of total state expenditure fell from 14.9 per cent in 2021 to 12.1 per cent in 2025.
Health spending remained relatively stable at about seven per cent, while the proportion allocated to social protection rose from 1.4 per cent to 4.4 per cent.
The report also showed a significant increase in capital expenditure, which accounted for 61 per cent of state spending, compared with 46 per cent previously.
Transport infrastructure recorded the largest increase in spending, followed by substantial investments in housing, agriculture and other economic activities.
Mathew Verghis, the World Bank’s country director for Nigeria, said the additional revenue created opportunities to improve infrastructure, education, healthcare and water services.
He stressed that greater spending efficiency, accountability and better service delivery were necessary to ensure that the additional public resources benefited Nigerians.
The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.
However, it emphasised the need for stronger investment in human capital to ensure that economic reforms translated into sustainable employment opportunities and improved living standards.
The report projected average economic growth of 4.4 per cent between 2026 and 2028, subject to the continuation of reforms and improvements in service delivery.
It urged federal and state authorities to ensure that increased public revenues resulted in tangible improvements in the welfare of Nigerians. (NAN)