World Bank Flags Declining Education Spending Despite States’ Revenue Growth
Nigeria’s 36 states recorded a 93 per cent increase in revenue between 2023 and 2025, but education received a declining share of total state expenditure, according to the World Bank’s latest Nigeria Development Update. The report, which examined how increased public revenue influenced spending priorities across the federation, was made available to the News Agency of Nigeria (NAN) by the bank in Washington, D.C. According to the report, aggregate state revenue rose by approximately 93 per cent in real terms during the period, while expenditure increased by 92 per cent. The bank attributed the revenue growth partly to exchange-rate reforms, the removal of petrol subsidies, stronger revenue administration and increased allocations from the Federation Account. States also benefited from refunds, the settlement of longstanding federal obligations, intervention funds and stronger value-added tax collections. However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025. Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.
The report further stated that capital expenditure increased 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. World Bank Country Director for Nigeria, Mathew Verghis, said increased revenue provided an opportunity to improve infrastructure, education, healthcare and water services, stressing that greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians. The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue but emphasised that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards. It also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery, urging federal and state authorities to ensure that increased public revenue translated into tangible improvements in Nigerians’ welfare.
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