Inside Nigeria’s N26.6 Trillion State Budgets: Debt Burdens and Underfunded Schools, Hospitals
In Nigeria, budget season is often marked by grand presentations. Governors, flanked by aides, arrive at State Houses of Assembly to unveil appropriation bills with lofty titles like “Budget of Renewed Hope” or “Budget of Consolidation.” However, behind the pomp and ceremony lies a stark reality affecting millions of citizens.
Take 26-year-old Musa Abdul*, a Basic Science teacher in Yobe State who hasn’t received his N70,000 monthly salary since his employment in 2022. His plight reflects the growing disconnect between state budgets and citizens’ welfare, exacerbated by President Bola Tinubu’s economic reforms including fuel subsidy removal and naira devaluation.
The Numbers Behind Nigeria’s State Budgets
PREMIUM TIMES analysis reveals Nigeria’s 36 states plan to spend a combined N26.63 trillion in 2025 – a staggering 64% increase from 2024’s N16.15 trillion budgets. This surge comes amid:
- Soaring inflation (currently at 33.2%)
- Rising unemployment (37.2% youth unemployment rate)
- Currency devaluation (naira lost 70% value in 2023)
Budget Rankings: Who’s Spending What?
Lagos leads with a N3.37 trillion budget – larger than 10 states combined. The top five spenders are:
- Lagos: N3.37 trillion
- Niger: N1.56 trillion
- Rivers: N1.19 trillion
- Ogun: N1.05 trillion
- Delta: N979.2 billion
At the bottom: Yobe (N320.8 billion), Gombe (N369.9 billion), and Ekiti (N375.79 billion).
The Dependency Crisis
Our investigation uncovered troubling financial patterns:
1. Federal Allocation Dependency
Only Lagos generates over 70% of its revenue internally. Most states rely on federal allocations for survival:
| Most Dependent States | FAAC Reliance |
|---|---|
| Ebonyi | 95.3% |
| Niger | 94.7% |
| Bayelsa | 93.5% |
2. Debt Time Bombs
Several states face dangerous debt-to-revenue ratios:
- Taraba: 7.49
- Imo: 7.38
- Adamawa: 7.19
Economic expert Gospel Obele warns: “Over 70% of Nigerian states are not commercially viable.”
Sectoral Neglect: Education and Healthcare Suffer
Despite Nigeria’s education and health crises, many states prioritize infrastructure over human development:
Education Underfunding
- Nasarawa: 0.44% of budget
- Benue: 0.5% of budget
Healthcare Crisis
- Anambra: 0.51% health allocation
- Benue: 0.57% health allocation
A Benue government employee (requesting anonymity) revealed: “Everything is neglected…health centers are poor, schools lack basic facilities.”
The Way Forward
Thaddeaus Jolayemi of BudgIT Foundation emphasizes transparency: “We’ve observed funds redirected to non-priority sectors, leading to corruption.”
As state budgets grow but impact remains limited, citizens increasingly question governance priorities. The August 2024 #EndBadGovernance protests highlighted growing frustrations with Nigeria’s fiscal management.
*Name changed to protect identity
Credit: This report is based on original investigation by Premium Times