How have increased government revenues shaped spending priorities across Nigerian states? BudgIT’s Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities, examines the country’s economic and fiscal outlook, state revenue trends, expenditure priorities and fiscal accountability.

The report highlights the 129.5% real-term increase in states’ share of federation revenues between 2023 and 2025. It also examines the growth in state capital expenditure, increased investment in infrastructure, and the slower growth in social-sector spending shares.

It further explores states’ continued dependence on federation transfers, weaknesses in budget credibility and expenditure controls, and the fiscal challenges affecting public service delivery.

Source: World Bank Development Update, 2026.