Nigeria’s states have more money. Are they spending it well?. Nigeria’s economic reforms have created a significant opportunity for state governments to improve public services, strengthen infrastructure and expand the productive capacity of their economies.
Whether citizens experience meaningful improvements in their living conditions, however, increasingly depends on how effectively governments convert additional resources into development outcomes.
The World Bank’s October 2026 Nigeria Development Update, […] Nigeria’s economic reforms have created a significant opportunity for state governments to improve public services, strengthen infrastructure and expand the productive capacity of their economies.
It documents a substantial increase in the resources available to state governments following petrol subsidy removal, foreign exchange reforms and improvements in revenue administration, while raising questions about spending priorities and the capacity to translate higher revenues into better public services.
Between 2023 and 2025, gross federation revenues increased by 69 per cent in real terms, according to the World Bank. Aggregate state revenues rose by approximately 93 per cent over the period, while expenditure increased by about 92 per cent. These gains have given governments greater room to address infrastructure deficits and improve essential services, although the aggregate figures conceal considerable differences in individual states’ fiscal circumstances. For Nigeria, where businesses face high operating costs and millions of households remain vulnerable to rising food, transport, and energy prices, the quality of public spending is central to broader economic recovery.
MSEApp News is publishing an original rewrite of this tip for readers, based on reporting associated with Daily Trust.