The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenue between 2023 and 2025, but education received a declining share of their total expenditure.
The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenue influenced spending priorities across the federation.
The report was made available to the News Agency of Nigeria (NAN) by the World Bank in Washington, D.C.
According to the report, the states’ aggregate revenue rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.
The report attributed the growth partly to exchange-rate reforms, the removal of the petrol subsidy, improved revenue administration and increased allocations from the Federation Account.
It said the states also benefited from refunds, the settlement of longstanding federal obligations, intervention funds and stronger Value Added Tax collections.
However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.
Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.
The bank said capital expenditure increased significantly, accounting 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 Matthew Verghis, the World Bank’s Country Director for Nigeria, as saying that increased revenue provided an opportunity to improve infrastructure, education, healthcare and water services.
He 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, transparncy and internally generated revenue.
It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.
The report also 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 revenue translated into tangible improvements in Nigerians’ welfare.