States’ Revenue Rose 93%, but Education Got a Smaller Share of Spending

Nigeria’s 36 states recorded a 93% increase in real revenue between 2023 and 2025, yet education received a smaller share of their total spending, according to the World Bank’s latest Nigeria Development Update. Education’s share of state expenditure fell from 14.9% in 2021 to 12.1% in 2025. Health spending remained around 7%, while social protection rose from 1.4% to 4.4%. The report linked higher state revenue to exchange-rate reforms, petrol subsidy removal, improved revenue collection, increased federation allocations and stronger VAT receipts. Capital spending rose to 61% of state expenditure, with transport, housing and agriculture among the major beneficiaries. The World Bank said states need stronger accountability and greater investment in education, health and other human-capital services to ensure higher revenues improve Nigerians’ living standards.

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