Nigerian state governments are increasing spending on transport infrastructure faster than on education, healthcare, and social protection, raising questions about whether rising public revenues are improving the essential services citizens depend on.
Development Diaries reports that the World Bank raised the concerns about state spending priorities at the launch of BudgIT’s 2026 “State of States” report on 03 November.
The report assessed the 2025 fiscal performance of 35 states and found that investments in transport infrastructure had grown faster than spending on education, healthcare and social protection, despite increased revenues since 2023.
The World Bank also noted that federal transfers accounted for more than three-quarters of revenue in all but a handful of states in 2025.
BudgIT’s findings make it necessary to examine whether increased revenue is translating into completed projects and better services, as its separate H1 2026 health expenditure assessment found that 34 states collectively spent N621.34 billion on health, representing 40.48 percent of their approved health budgets by the end of the first half of the year.
It is understood that Rivers and Osun were excluded because expenditure data were unavailable.
Roads are essential to economic activity and can improve access to schools, hospitals, and markets, but sub-national governments seem to give insufficient attention to other services that determine people’s welfare.
A road may make a health facility easier to reach, but that benefit is limited when the facility lacks medical staff, medicines or basic equipment. Similarly, new school buildings will not improve learning if classrooms remain overcrowded and teachers lack the materials needed to teach.
The spending pattern has particular implications for women, young people and persons with disabilities, with women and girls in underserved communities often bearing the cost of inadequate water, sanitation, healthcare and social support, while young people face limited access to quality education and skills development.
Persons with disabilities may encounter additional barriers when public infrastructure, schools and health facilities are inaccessible or fail to provide appropriate support.
These gaps can deepen existing inequalities, especially for households that cannot afford private alternatives.
Nigeria’s constitution places obligations on government to promote adequate medical and health facilities for all persons under Section 17(3)(d), while Section 18 directs government policy towards equal and adequate educational opportunities and the eradication of illiteracy.
Also, the National Health Act 2014 provides the framework for managing the national health system, while the Universal Basic Education Act establishes the right to free, compulsory and universal basic education and assigns responsibilities to the Universal Basic Education Commission (UBEC), State Universal Basic Education Boards (SUBEBs) and Local Government Education Authorities.
These obligations involve different levels of government, with state ministries of education and SUBEBs overseeing basic education planning and delivery, while state ministries of health and State Primary Health Care Development Agencies have responsibilities for health service delivery, working with local government authorities.
For their part, state houses of assembly are responsible for scrutinising budgets and monitoring executive expenditure, while the Federal Ministry of Education, UBEC and the Federal Ministry of Health also have national oversight and coordination responsibilities within their respective mandates.
State governments should publish accessible records showing allocations, releases and actual expenditure across education, healthcare, transport and social protection.
They should also disclose project locations, completion status and the communities expected to benefit, while the Auditor-General of each state should scrutinise unexplained spending gaps, with state assemblies using budget hearings and oversight proceedings to demand explanations from ministries and agencies.
Parents, patients’ associations, disability rights organisations, youth groups and community-based organisations can compare official project records with conditions in their communities and submit evidence to relevant oversight bodies.
They should be able to establish why a school or health facility remains neglected while other projects receive substantial funding.
Nigeria’s states must account for how increased revenues are spent and demonstrate that their investment choices are improving access to education, healthcare and other essential services.
