…34 states spent N8.6tn of N35.22tn budgets in H1 2026 – BudgIT
Thirty-four Nigerian states spent only N8.60 trillion, representing 24.4 percent of their combined approved budgets of N35.22 trillion, in the first half of 2026. This low performance raises concerns over the pace of budget implementation and the ability of state governments to translate rising revenues into developmental outcomes and citizens’ welfare.
The figures, released by civic organisation BudgIT, show that N26.62 trillion of the combined budgeted expenditure across the 34 states remained unspent by the end of June. This sluggish execution persists despite increased fiscal resources available to subnational governments following the removal of the petrol subsidy and other macroeconomic reforms.
Country Director Vahyala Kwaga disclosed this at the launch of the 11th edition of the organisation’s State of States Report. He called for closer scrutiny of how state governments allocate and deploy public resources.
Moving beyond revenue to actual impact
According to Kwaga, the figures highlight the need to move beyond measuring how much revenue states receive or appropriate in annual budgets. Instead, stakeholders must examine actual expenditure and the real development impact of government spending.
”Our H1 2026 expenditure analysis offers another perspective. Across 34 states, a combined N35.22 trillion had been budgeted, but only N8.60 trillion had been spent by the end of June, representing 24.4 per cent of the combined approved budgets.
”This tells us that the conversation cannot end with how much money states receive or how much they budget. We must also examine how effectively they deploy the resources available to them, what they prioritise and whether their spending is delivering the outcomes that citizens need,” he stated.
These findings emerge against the backdrop of substantial revenue increases accruing to state governments following the federal government’s exchange rate reforms and the removal of the petrol subsidy in 2023.
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Surge in subnational revenues
BudgIT’s analysis of state finances between 2022 and 2025 showed that aggregate revenue across the 34 states assessed increased from approximately N4.99 trillion in 2022 to N15.53 trillion in 2025.
This reflects a sharp increase of about 211 per cent within three years, underscoring the significant expansion of fiscal resources available to subnational governments. Federation Account Allocation Committee (FAAC) receipts also rose from N3.43 trillion in 2022 to N11.38 trillion in 2025, an increase exceeding 232 per cent.
Kwaga noted that the scale of this revenue growth should have created greater opportunities for state governments to address longstanding infrastructure deficits, poor healthcare delivery, and gaps in education.
”We are now firmly in the post-subsidy removal era. The fiscal landscape of our states has changed considerably, with trillions of naira in allocations flowing from the Federation Account to subnational governments,” he said.
”These are substantial changes. State governments now have access to resources at a scale that should create greater opportunities to address longstanding development deficits.”
Questioning public service delivery
Despite higher financial inflows, Kwaga questioned whether the additional resources were translating into improved public services and better living conditions for citizens.
”But what have these additional resources meant for the people of our states? How much of this increased fiscal capacity is finding its way into better public services, stronger infrastructure and improved human development?” he asked.
These concerns underpinned BudgIT’s decision to introduce a substantially revised methodology for its 11th State of States Report. The new framework expands the assessment beyond conventional indicators like revenue growth, expenditure, and debt sustainability.
While previous frameworks provided insights into financial sustainability, Kwaga noted they did not adequately establish whether public spending genuinely improved citizen welfare. The revised methodology places greater emphasis on the quality and developmental orientation of public expenditure.
Call for enhanced fiscal accountability
The revised assessment evaluates how states allocate resources to critical sectors such as health, education, agriculture, water, sanitation, and hygiene. It also tracks the actual execution of budgeted projects.
Kwaga urged citizens, civil society organisations, journalists, and policymakers to utilise the report’s findings to demand greater accountability from elected officials. He emphasised that fiscal accountability must extend beyond annual reports and become part of everyday governance discourse.
”We want the findings of the State of States to travel beyond this room. We want journalists to interrogate them, civil society organisations to use them in their advocacy, policymakers to engage with them in shaping fiscal priorities, and citizens to use the evidence to demand better from their governments,” he concluded.
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