World Bank Raises Concern Over Declining Education Spending Despite States’ Revenue Growth

The World Bank has raised concerns over declining education spending in Nigeria, despite a 93 per cent increase in state governments’ revenues between 2023 and 2025.

According to the bank’s latest Nigeria Development Update, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period. The growth was attributed partly to exchange-rate reforms, the removal of petrol subsidies, improved revenue administration and increased allocations from the federation account.

However, education’s share of total state expenditure fell from 14.9 per cent in 2021 to 12.1 per cent in 2025. Health spending remained broadly stable at about seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The report also showed that capital expenditure accounted for 61 per cent of state spending, up from 46 per cent previously, with transport infrastructure recording the largest increase.

The World Bank urged federal and state governments to improve spending efficiency, accountability and service delivery to ensure that increased public revenues translate into better education, healthcare, infrastructure and living standards. It projected that Nigeria’s economy would grow by an average of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.