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Nigeria

34 Nigerian states' revenue hits N15.53tn but spending lags, World Bank and BudgIT say

Rising state revenues since the subsidy removal and currency reforms have not become faster budget execution or stronger social spending, raising questions for state finance and investors.

Photo: BusinessDay

What happened

Revenue generated by 34 Nigerian states rose 211.2% to N15.53 trillion in 2025 from N4.99 trillion in 2022, an increase of N10.54 trillion. Investors King Allocations from the Federation Account Allocation Committee rose more than 232% to N11.38 trillion from N3.43 trillion over the same period. Investors King The 34 states spent only N8.60 trillion, or 24.4 percent of their combined approved budgets of N35.22 trillion, in the first half of 2026, leaving N26.62 trillion unspent by the end of June. BusinessDay+1 The figures were disclosed at the Abuja launch of the 11th edition of BudgIT's State of States Report, themed From Allocation to Impact: Rethinking State Spending Priorities. The Sun Nigeria+1 World Bank Senior Economist Gloria Joseph-Raji said spending on transport infrastructure has grown considerably faster than investment in education, healthcare and social protection. Investors King+1

Around it

The revenue increase followed the removal of petrol subsidies, foreign exchange reforms and improvements in tax and revenue administration. Investors King+2 The World Bank's October Nigeria Development Update said many state budgets set spending targets beyond what governments can realistically finance and implement. Peoples Gazette Nigeria Joseph-Raji urged states to strengthen budget planning, cash management and spending controls so that higher revenues result in completed projects and better services. Peoples Gazette Nigeria BudgIT country director Vahyala Kwaga called for closer scrutiny of how states allocate and deploy public resources, and for measuring impact beyond how much revenue states receive or appropriate. BusinessDay

Sources

  1. Investors KingNigerian States’ Revenue Surges 211% to N15.53 Trillion as World Bank Questions Spending Priorities
  2. BusinessDay34 States fail to translate record FAAC inflows into public welfare
  3. The Sun NigeriaWorld Bank, BudgIT fault states’ spending as N26.62trn lies idle
  4. Peoples Gazette NigeriaWorld Bank warns states’ budgets exceed available funding, risking stalled projects, payment arrears

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