World Bank faults states’ spending priorities
The World Bank has criticised Nigerian state governments for prioritising transport infrastructure over education, healthcare and social protection despite increased revenues following economic reforms. Speaking at the launch of BudgIT’s 2026 State of States Report in Abuja, the bank’s Senior Economist, Gloria Joseph-Raji, said revenue growth driven by fuel subsidy removal, exchange rate reforms and improved tax administration had not translated into proportionate investments in essential public services.
Meanwhile, BudgIT disclosed that revenue across 34 states increased from N4.99tn in 2022 to N15.53tn in 2025, while warning that weak budget implementation and excessive recurrent spending had limited developmental impact. The World Bank urged states to reduce dependence on federal allocations and prioritise spending that improves citizens’ living conditions.
