World Bank: Nigerian States' Revenues Up 93%, Education Falls

Nigeria's 36 states recorded a 93 per cent increase in revenues between 2023 and 2025, but education received a declining share of their spending over the period, the World Bank has said.

 

The bank disclosed this in its latest Nigeria Development Update, which examined how higher public revenues have shaped spending priorities across the federation. The World Bank made the report available to the News Agency of Nigeria (NAN) in Washington D.C.

 

According to the report, states' aggregate revenues rose by approximately 93 per cent in real terms, while their expenditure grew by 92 per cent within the same period.

 

 

The report attributed the gains partly to exchange-rate reforms, the removal of petrol subsidy, stronger revenue administration and increased allocations from the Federation Account.

 

It said states also benefited from refunds, the settlement of longstanding federal obligations, intervention funds and stronger Value Added Tax (VAT) collections.

 

Education's share of total state expenditure, however, declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

 

Health spending remained broadly stable at approximately seven per cent, while the share allocated to social protection rose from 1.4 per cent to 4.4 per cent.

 

The bank said capital expenditure increased significantly and now accounts for 61 per cent of state spending, compared with 46 per cent previously.

 

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

 

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare and water services.

 

Verghis said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

 

The bank acknowledged improvements in states' fiscal reporting, transparency and internally generated revenue. It stressed, however, that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and better living standards.

 

The report projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

 

It urged federal and state authorities to ensure that increased public revenues translate into tangible improvements in the welfare of Nigerians.