World Bank Reports 93% Revenue Growth in Nigerian States

The World Bank reported that Nigeria's 36 states experienced a 93% increase in aggregate revenues in real terms between 2023 and 2025, while total expenditure rose by 92%. This growth was attributed to exchange-rate reforms, the removal of petrol subsidies, improved revenue administration, and increased allocations from the federation account.

Despite this revenue growth, education's share of total state expenditure fell from 14.9% in 2021 to 12.1% in 2025. Health expenditure remained stable at around 7%, while social protection's share increased from 1.4% to 4.4%.

Capital expenditure significantly rose to account for 61% of state spending, with transport infrastructure seeing the largest increase. Mathew Verghis, the World Bank Country Director for Nigeria, emphasized the need for greater spending efficiency and accountability to ensure that increased public resources benefit Nigerians.

The report also projected an average economic growth of 4.4% from 2026 to 2028, contingent on sustained reforms and improved service delivery.