The World Bank says the revenues of Nigeria’s 36 states rose by 93 per cent between 2023 and 2025, but education received a declining share of the sector’s expenditure.

The bank made this known in its latest Nigeria Development Update, which examined how higher public revenues have influenced spending priorities across the federation.

The World Bank in Washington D.C. made the report available to the News Agency of Nigeria.

According to the report, states’ aggregate revenues rose by about 93 per cent in real terms during the period, while expenditure increased by 92 per cent.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and higher allocations from the federation account.

It added that states also gained from refunds, the settlement of longstanding federal obligations, intervention funds and stronger value-added tax collections.

However, the report said education’s share of total state expenditure fell from 14.9 per cent in 2021 to 12.1 per cent in 2025.

Health expenditure stayed broadly stable at about seven per cent, while the share of social protection rose from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure rose 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 the World Bank Country Director for Nigeria, Mathew Verghis, as saying that higher revenues gave states the opportunity to improve infrastructure, education, healthcare and water services.

He said greater spending efficiency, accountability and better service delivery were essential to ensure that the additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It stressed, however, that stronger investment in human capital was necessary to turn economic reforms into sustainable employment and better 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 higher public revenues translated into tangible improvements in the welfare of Nigerians.