Education’s share of public expenditure declined between 2023 and 2025 raising concerns about investment in human capital despite Nigeria’s 36 states record of 93 per cent increase in revenue over the same period.
The World Bank disclosed this in its latest Nigeria Development Update, which examined how rising government revenues have influenced spending priorities across the federation.
According to the report, made available to correspondents by the World Bank in Washington, states’ aggregate revenues increased by approximately 93 per cent in real terms between 2023 and 2025, while their total expenditure rose by 92 per cent.
The bank attributed the revenue growth partly to exchange-rate reforms, the removal of petrol subsidies, improved revenue administration and increased allocations from the Federation Account.
Other factors included refunds, the settlement of outstanding federal obligations, intervention funds and improved collections from Value Added Tax.
Despite the increase in available resources, education’s share of total state expenditure fell from 14.9 per cent in 2021 to 12.1 per cent in 2025, the report stated.
Health spending remained relatively stable at about seven per cent of total expenditure, while social protection received a larger share, rising from 1.4 per cent to 4.4 per cent over the period.
The report also highlighted a significant shift towards capital projects, with capital expenditure accounting for 61 per cent of total state spending, compared with 46 per cent previously.
Transport infrastructure recorded the largest increase in spending, while housing, agriculture and other economic investments also attracted substantial funding.
Commenting on the findings, the World Bank Country Director for Nigeria, Mathew Verghis, said the increase in public revenue presented an opportunity for states to improve infrastructure and strengthen essential services, including education, healthcare and water supply.
He stressed the need for more efficient public spending, stronger accountability and improved service delivery to ensure that additional government revenue translated into tangible benefits for citizens.
The bank acknowledged progress in states’ fiscal reporting, transparency and internally generated revenue, but emphasised that increased investment in human capital remains critical to achieving sustainable employment and better living standards.
It projected that Nigeria’s economy would grow by an average of 4.4 per cent between 2026 and 2028, provided reforms were sustained and service delivery improved.
The report urged federal and state governments to ensure that rising public revenues resulted in measurable improvements in citizens’ welfare, particularly through investments in essential services and economic opportunities.
What is the essence of reforms that only benefit government institutions at the expense of the masses?
