World Bank Reports Decline in Nigeria's Education Spending

The World Bank reported that Nigeria's 36 states experienced a 93% increase in real revenues between 2023 and 2025, yet the share of government expenditure allocated to education decreased from 14.9% in 2021 to 12.1% in 2025. This decline occurred despite significant fiscal resources available to state governments due to economic reforms by the Federal Government, including the removal of petrol subsidies and changes to the foreign exchange regime.

The report indicated that while aggregate state revenues rose by approximately 93% in real terms, total expenditure increased by 92%. The World Bank attributed the revenue growth to several factors, including exchange-rate reforms and improved Value Added Tax collections.

Despite the increased resources, education's budget share declined, while health expenditure remained stable at around 7%. The report also noted a substantial rise in capital expenditure, which accounted for 61% of total state spending, with a focus on infrastructure projects.

Mathew Verghis, the World Bank Country Director for Nigeria, emphasized the need for improved spending efficiency to benefit citizens.