World Bank Reports 93% Rise in Nigeria's State Revenues

According to the World Bank's latest Nigeria Development Update, state government revenues in Nigeria rose by 93% in real terms between 2023 and 2025, while expenditures increased by 92%. The report, titled “Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities,” indicates that the share of state expenditure allocated to capital projects grew from 46% to 61% during this period.

Contributing factors to this increase included improved federation revenues, foreign exchange reforms, the removal of the petrol subsidy, and stronger revenue administration. The World Bank emphasized that while states are directing more of their budgets towards capital projects, the decline in education spending raises concerns about balancing infrastructure investment with social services.

The report also highlighted the need for improved spending efficiency and accountability to ensure that higher revenues lead to measurable improvements in living standards. Additionally, the World Bank projects Nigeria's economy will grow by an average of 4.4% from 2026 to 2028, with inflation expected to ease to around 12% by 2028.