As Nigeria grapples with a deepening out-of-school crisis, billions of naira earmarked to improve access to education have gone unclaimed by the very states facing some of the country’s biggest learning challenges.
Despite the availability of N97.5 billion with the Universal Basic Education Commission (UBEC), 21 states failed to access the money, raising fresh questions about funding gaps, administrative bottlenecks and the commitment of state governments to tackling the growing number of children out of school.
According to information released by the Universal Basic Education Commission (UBEC) following a Freedom of Information request by Femi Falana, human rights lawyer, Abia State left N7.109 billion, Adamawa State N3.554 billion, Akwa Ibom N3.554 billion, and Anambra State N3.554 billion.
Bayelsa State left N3.554 billion, Cross River N3.554 billion, Ebonyi State N3.554 billion, Edo State N3.555 billion, Zamfara State N197.6 million, Federal Capital Territory (FCT) N5.077 billion, Gombe State N1.876 billion, Imo State N10.6 billion (highest defaulter), Kano State, Katsina State, Kebbi State, Kwara State N197.6 million, Lagos State N3.554 billion. Nasarawa State N3.554 billion, Niger State N7.109 billion, Ogun State N9.7 billion (second highest defaulter), Oyo State N7.109 billion, and Rivers State N7.809 billion.
The grant amounting to about N98 billion is earmarked specifically to build schools, train teachers, and get children into classrooms is sitting idle in government accounts while those children sit on bare floors or do not sit anywhere at all because there is no school within reach of their homes.
A report from a UBEC publication indicates that the matching grant is aimed at supporting every state and FCT on an equal basis to provide the much-needed infrastructure for UBE implementation.
‘It is a conditional grant which requires states’ counterpart contribution. The total share for each state is computed on the basis of the amount received by UBEC, upon which the state is required to contribute at least 50 percent of the total cost of any given project as its own counterpart fund.
‘To access the matching grant allocation, every state and FCT is required to provide an equal amount as counterpart fund contribution, in compliance with Section 11(2) of the Universal Basic Education Commission Act, 2004,’ the UBEC report reveals.
Besides, there is a $552 million World Bank-supported HOPE Education Programme fund that the federal government unlocked in March 2026, and is available to all 36 states as performance-based financing to boost basic education.
Tunji Alausa, the minister of education, revealed that several states are yet to sign subsidiary loan agreements or fulfil mandatory data reporting obligations to access the funds.
Alausa disclosed this during a five-day executive retreat for state commissioners of education held in July, where he used the occasion to publicly plead with the states to come and collect the money.
In December 2024, 34 states and the FCT left N263 billion inaccessible with UBEC. By March 2026, the cumulative unaccessed figure stood at N98 billion, with 2025 recording another high default of N68.1 billion.
Stakeholders argue that the reason states consistently fail to access education grants with conditions attached is precisely because of the conditions.
The HOPE-EDU programme requires that states sign loan agreements, designate accounts, and provide verified data on enrolment, teacher deployment, and learning outcomes. Signing the subsidiary loan agreements or fulfilling mandatory data reporting obligations are the administrative equivalent of opening a bank account and submitting a report.
These requirements are designed to ensure that money reaches classrooms rather than disappearing into the procurement ecosystem. And that is precisely what makes them unpalatable to state governments, who prefer to manage public resources without external verification.
Nubi Achebo, director of academic planning at Nigerian University of Technology and Management (NUTM), described the development as basically money sitting on the table while classrooms fall apart.
‘It’s a governance problem, not a money problem. It’s a ‘systemic failure of sub-national governance,’ and many of the defaulters have fiscal capacity; so, it’s less ‘we don’t have money’ and more we don’t want the conditions,’ he said.
Achebo advocates deducting states’ counterpart funds at source as was done with Paris Club refunds, but tie release strictly to verified action plans.
‘Treat basic education as non-negotiable in budgets. The 50 percent counterpart is not a gift; it’s their legal obligation under the UBE Act 2004.
‘We can’t keep separating ‘federal money’ from ‘state responsibility.’ Until there are real consequences for leaving education funds idle, states will keep treating UBEC grants as optional,’ he said.
Jessica Osuere, CEO at RubiesHub Educational Services, said, ‘Weak planning systems, poor record-keeping, and a reluctance to embrace transparency are the main issues here.’
Osuere urges states to invest in reliable education management information systems (EMIS), build the capacity of their education ministries and SUBEB officials in data collection and reporting, among others.
Gift Osikoya, an educator, emphasised that accountability and transparency are essential in the management of public funds. ‘External verification should not be seen as a punishment but as a necessary process to ensure that resources are used appropriately and that the intended beneficiaries receive the full value of the investment,’ she said.
Meanwhile, Lagos State has taken steps to access the federal government’s UBE matching grant with a workshop to strategically position itself to benefit maximally from the funding operational framework of the proposed federal government-World Bank UBE matching grant.