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Nigeria

Nigerian states spend only a quarter of approved 2026 budgets in first half

Slow spending despite record revenue raises questions about whether state funds are reaching services, a concern for investors and policymakers tracking state fiscal performance.

Photo: Fawaz Onakoya, Pexels

What happened

Thirty-four Nigerian states spent N8.60 trillion in the first half of 2026, which is 24.4 percent of their combined approved budgets of N35.22 trillion. BusinessDay A BudgIT report found that N26.62 trillion of budgeted expenditure remained unspent by the end of June. BusinessDay BudgIT's country director, Vahyala Kwaga, presented the figures at the launch of the 11th edition of the State of States Report and called for closer scrutiny of how states allocate and deploy public resources. BusinessDay Revenue generated by the 34 states rose 211.2 percent to N15.53 trillion in 2025, compared with N4.99 trillion in 2022, according to BudgIT. Investors King

Around it

Allocations from the Federation Account Allocation Committee rose more than 232 percent to N11.38 trillion from N3.43 trillion over the same period. Investors King The increases followed the removal of the petrol subsidy, foreign exchange reforms and improvements in revenue collection. Investors King+1 The World Bank said spending on transport infrastructure has grown considerably faster than spending on education, healthcare and social protection. Investors King World Bank senior economist Gloria Joseph-Raji urged states to strengthen budget planning, cash management and spending controls, and said many state budgets set targets beyond what governments can realistically finance. Peoples Gazette Nigeria

Sources

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

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