By Ayobami Ayorinde and Seyi Akinbodewa | Almost all the states in Nigeria have published their four quarterly budget implementation reports for the year 2025. This is commendable and needed, especially in a country where many citizens and civic groups clamour for fiscal transparency and accountability. The Federal Government, on the other hand, has lagged behind in meeting the same standard. The most recent quarterly budget implementation report released by the Federal Government covers Q2 2025. Yet, the Fiscal Responsibility Act (2007) requires all governments to publish a summary report of budget execution within 30 days of the end of each quarter. 

The State Fiscal Transparency, Accountability and Sustainability (SFTAS) programme (2018-2022), a performance-for-results programme initiated by the Federal Government but implemented by the World Bank, contributed to improving fiscal openness at the subnational level. Although the SFTAS programme ended four years ago, the continued release of quarterly budget implementation reports shows that the initiative has been largely sustained across states. This regular disclosure opens room for accountability and allows for residents and citizens to ask crucial and informed questions about how states generate and spend their revenues. 

The budget implementation reports of states for 2025 provide comprehensive information on the fiscal performance of 35 states in the course of the year. The report excludes Rivers State because the state did not publish any BIR for the year, possibly on account of the state of emergency in the state for six months in 2025. In this analysis, we examine revenue generation and expenditure patterns and assess their performance relative to final budget estimates.

Expenditure and Revenue of States

In 2025, 35 out of 36 states recorded a combined expenditure of ₦19.21 trillion. This is a 37% increase from the ₦14.05 trillion recorded in 2024. On the other hand, their total revenue amounted to ₦16.64 trillion in 2025, a 24% increase from ₦13.39 trillion in 2024, as seen in Fig 1. As a result, the budget deficit as a percentage of revenue increased from 4.9% in 2024 to 15.4% in 2025. This shows that even when revenue increased, the deficit also increased because states’ expenditure outpaced their income. 

As shown in Fig 2 below, Lagos generated the highest revenue in 2025 at ₦2.63 trillion, followed by Delta (₦1.45 trillion) and Akwa Ibom (₦1.11 trillion). At the lower end in terms of revenue were: Zamfara (₦204.9 billion), Kebbi (₦191.2 billion) and Nasarawa (₦188.6 billion). Notably, Lagos (₦2.84 trillion), Akwa Ibom (₦1.33 trillion), and Delta (₦1.15 trillion) also recorded the highest expenditure in 2025, as seen in Fig 3 below. On the other hand, Zamfara (₦254.4 billion), Kebbi (₦239.8 billion), and Taraba (₦195.5 billion) had the least spending for the year.

States' Budget Expenditure Performance

In 2025, 35 out of the 36 states combined achieved a budget implementation rate of 68.2%, just 1.8% lower than the rate achieved by all 36 states in 2024, as seen in Fig 4. Of the ₦19.21 trillion spent, a total of ₦11.87 trillion (62%) went to capital projects while ₦7.34 trillion (38%) went to recurrent costs as seen in Fig 5 below. When compared with the 58% and 42% that went to capital and recurrent expenditure, respectively in 2024, it shows that states are directing a larger share of their expenditure toward capital projects. This pattern is also reflected in the 2026 budget proposals, where 33 states allocated more than 50% of their budgets to capital spending.

For the 35 states reviewed, recurrent expenditure achieved an implementation rate of 79%, while capital expenditure was 62.9%, as shown in Fig 6. Anambra (80%), Enugu (79%), Abia (79%), Imo (78%), Akwa Ibom (77%) and Bayelsa (77%) recorded the highest capital spending in percentage terms while Plateau (67%), Kogi (66%), Osun (62%), Ekiti (62%), Taraba (61%) and Ondo (60%) led in recurrent expenditure as seen in Fig 7 below.

Out of the 34 states, six implemented less than half of their final budgets. The affected states are: Taraba (34%), Kebbi (41.3%), Abia (45.5%), Niger (47.1%), Plateau (47.5%) and Cross River (48.9%). However, the states that surpassed 80% implementation rate are Yobe (99.8%), Delta (97.2%), Ekiti (87.9%), Bauchi (85.6%), Lagos (84.3%), Osun (82.2%), Bayelsa (82%) and Akwa Ibom (80.6%) as seen in Fig 8 and 9. 

Taraba (20.1%), Plateau (26.2%), Kebbi (34.6%), Kwara (37.7%), Cross River (38.2%), Niger (39.4%), Adamawa (39.8%), Abia (46%), Ebonyi (46.3%), Ogun (47%) and Ondo (49.3%) implemented less than half of their capital budgets. Meanwhile, Yobe (106.4%), Delta (99.9%), Lagos (85.6%), Akwa Ibom (83.9%), and Bayelsa (82.4%) each recorded over 80% in capital budget implementation as shown in Fig 10 and 11 below.

On the other hand, 18 states recorded recurrent expenditure implementation rates above 80%, while Abia was the only state that failed to reach 50% as seen in Fig 12 and 13.

States’ Budget Revenue Performance  

In 2025, 35 out of the 36 states combined achieved 88.4% of their total projected revenue as seen in Fig 14, unlike 2024 where 36 states combined recorded a 5% revenue increase above budgeted figures due to higher FAAC allocations. The shortfall in 2025 can be attributed to some states setting overly ambitious revenue projections for the year, possibly based on the 2024 outturn. Out of the ₦16.64 trillion in actual revenue in 2025, ₦12.40 trillion (75%) was from FAAC, while ₦4.24 trillion (25%) was through IGR, as shown in Fig 15.

The reviewed states received 91.6% of their total projected FAAC revenue in 2025, as seen in Fig 16 below, while their combined IGR fell short by 21% compared to projections.

Lagos (₦2.6 trillion), Delta (₦1.5 trillion), Akwa Ibom (₦1.1 trillion), Bayelsa (₦976.9 billion), Enugu (₦665.9 billion) Edo (₦511.2 billion), Kano (₦486.8 billion), Oyo (₦467.9 billion), Ogun (₦436.5 billion) and Anambra (₦390.3 billion) are the states with the highest revenue in 2025 as shown in Fig 17. The zonal distribution of the Top 10 states in terms of revenue is as follows: South South (four), South West (three), South East (two) and North West (one). Nine of these states are from the South, while only Kano is from the North. On the flip side, Nasarawa (₦188.6 billion), Kebbi (₦191.2 billion), Zamfara (₦204.9 billion), Ebonyi (₦234.9 billion), Adamawa (₦235.5 billion), Taraba (₦249.3 billion), Yobe (₦262.2 billion), Gombe (₦264.9 billion), Ekiti (₦275.6 billion) and Plateau (₦289 billion) are the states with the lowest revenue generated as shown in Fig 18. Among the 10 states at the lower end, eight are from the North, while two (Ebonyi and Ekiti) are from the South. 

IGR accounted for over half of total revenue in Lagos (70%), Enugu (61%) and Ogun (54%), while states like Bayelsa (5%), Yobe (6%), and Sokoto (7%) recorded less than 10% of their revenue from IGR, as seen in Fig 19 below.

Lagos recorded by far the highest IGR in 2025 at ₦1.85 trillion, more than the other top nine states combined. On the flip side, Yobe (₦15.4 billion), Taraba (₦17.9 billion) and Kebbi (₦18.4 billion) recorded the least, as shown in Fig 20 and 21 below.

Delta (₦1.24 trillion), Akwa Ibom (₦1.02 trillion) and Bayelsa (₦924.7 billion) received the highest revenue from FAAC, while Nasarawa (₦149.2 billion), Kebbi (₦172.8 billion) and Zamfara (₦174.8 billion) got the lowest, as seen in Fig 22 and 23 below

In 2025, Delta (133.3%), Ondo (119.9%), Plateau (119.1%), Imo (112.9%), Ekiti (112%), Anambra (102.8%) and Yobe (102%) recorded revenues (FAAC and IGR) exceeding their budget projections, while 27 states fell short of their targets as seen in Fig 24 and 25 below

Out of the 35 states, Plateau (135.6%), Delta (131.1%), Lagos (125%), Ondo (122%), Abia (117.6%), Imo (116.8%), Ekiti (113.1%), Enugu (112.5%), Sokoto (109%), Jigawa (108.5%), Anambra (105.1%), Osun (102.5%) and Yobe (101.7%) received more FAAC revenue than budgeted, while 22 states recorded lower-than-projected FAAC allocations as seen in Fig 26 and 27 below. 

Eight states – Delta (148.4%), Borno (118.9%), Gombe (111%), Ondo (107.8%), Ekiti (107.7%), Yobe (105.9%), Kogi (104.4%) and Kwara (103.5%) generated more IGR than projected in their budgets, while 26 fell short of their IGR targets as shown in Fig 28 and 29 below.

Conclusion and Recommendations

The figures from the report show that states’ revenue and expenditure grew in 2025 compared to 2024 by 24% and 37% respectively. The average budget implementation rate of 68% also shows that about a third of planned spending did not happen. Recurrent spending implementation across the states however, is high, with 18 states recording implementation rates above 80%. This is evidenced by the fact that only 11 states implemented less than half of their capital budgets. The stronger performance of recurrent spending relative to capital expenditure means that states still always have to pay salaries and fund operational costs as at when due. While capital projects are essential for long-term development, recurrent expenditure, which covers operational costs and workers’ salaries, particularly in critical sectors such as education and health, is equally important. If states are able to significantly expand their revenue bases in the coming years, they will have more fiscal space to invest more in capital projects. This is very relevant given that about 90% of states budgeted more for capital expenditure than for recurrent spending in their 2026 budgets. This is where realistic forecasting comes into play. States need to strengthen the basis of their budget projections to ensure that revenue and expenditure estimates are achievable. Without credible assumptions behind projections, states may continue to fall short of their budget targets. 

With states becoming more consistent in disclosing their fiscal data, this should encourage citizens, Civil Society Organisations (CSOs) and the media to ask questions and demand accountability on how money is spent and what it is spent on at the sub-national level. Beyond the size of spending, the quality of spending is equally important. High budget implementation rates are commendable, but ensuring that funds are used efficiently and deliver meaningful outcomes should remain a priority. Therefore, strengthening revenue generation and improving fiscal discipline will be essential to ensuring that public spending translates into tangible socio-economic benefits for citizens.