World Bank says state revenues rose 93% while education’s spending share fell

Nigeria’s 36 states received substantially more revenue between 2023 and 2025, but education took a smaller share of their spending, according to the World Bank’s latest Nigeria Development Update.

Aggregate state revenues rose by about 93 per cent in real terms over that period, while expenditure increased by 92 per cent. The education comparison covers a different period: its share of total state expenditure fell from 14.9 per cent in 2021 to 12.1 per cent in 2025.

Punch reported the findings, citing the World Bank report made available to the News Agency of Nigeria. The figures concern education’s share of spending, rather than establishing a fall in the total amount spent on education.

The bank attributed the revenue gains partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and larger federation-account allocations. It also identified refunds, settlement of longstanding federal obligations, intervention funds and stronger Value Added Tax collections as contributors.

Health spending remained broadly stable at about seven per cent of total expenditure. Social protection’s share rose from 1.4 per cent to 4.4 per cent.

Capital expenditure accounted for 61 per cent of state spending, compared with 46 per cent previously. Transport infrastructure recorded the largest increase, with higher spending also reported on housing, agriculture and other economic investments.

Mathew Verghis, the World Bank’s Nigeria director, said the additional revenues offered an opportunity to improve infrastructure, education, healthcare and water services. He called for better spending efficiency, accountability and service delivery so that the extra resources benefit Nigerians.

The report acknowledged improvements in fiscal reporting, transparency and internally generated revenue, while urging stronger investment in human capital.

Source: Punch