Nigeria’s 36 states recorded a 93 per cent increase in revenue between 2023 and 2025, but education’s share of total expenditure declined, the World Bank has said.
The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenue has influenced spending priorities across the federation.
The report was made available to the News Agency of Nigeria (NAN) by the World Bank in Washington, D.C.
According to the report, aggregate state revenue increased by approximately 93 per cent in real terms during the period, while expenditure rose by 92 per cent.
The World Bank attributed the revenue growth partly to exchange-rate reforms, the removal of petrol subsidies, improved revenue administration and increased allocations from the Federation Account.
It said the states also benefited from refunds, the settlement of longstanding federal obligations, intervention funds and stronger Value Added Tax collections.
Despite the increase in available resources, the share of state expenditure allocated to education fell from 14.9 per cent in 2021 to 12.1 per cent in 2025.
Health expenditure remained broadly stable at about seven per cent, while social protection spending increased from 1.4 per cent to 4.4 per cent over the period.
The report also highlighted a significant increase in capital expenditure, which accounted for 61 per cent of total state spending, compared with 46 per cent previously.
Transport infrastructure recorded the largest increase in capital spending, alongside substantial investments in housing, agriculture and other economic activities.
The World Bank Country Director for Nigeria, Mathew Verghis, said the increase in public revenue presented an opportunity for governments to improve infrastructure and strengthen the delivery of essential services.
He, however, stressed the need for greater spending efficiency, accountability and improved service delivery to ensure that additional public resources translated into tangible benefits for Nigerians.
The bank acknowledged improvements in fiscal reporting, transparency and internally generated revenue among states.
It nevertheless emphasised that increased investment in human capital was essential to translating economic reforms 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 governments to ensure that increased public revenue resulted in measurable improvements in citizens’ welfare, particularly in education, healthcare, infrastructure and other essential services.
(NAN)
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