BudgIT, a civic tech non-profit organisation, has revealed that only seven Nigerian states implemented more than 80 per cent of their health budgets in 2024.
The finding was highlighted during the launch of BudgIT’s 2025 State of States Report in Abuja on Tuesday, themed “A Decade of Subnational Fiscal Analysis.” The states identified were Yobe, Gombe, Ekiti, Lagos, Edo, Delta, and Bauchi.
The report showed that Nigerian states collectively budgeted ₦1.32 trillion for health in 2024, but actual spending fell sharply to ₦816.64 billion, representing a 61.9 per cent budget performance. Yobe led in budget execution with a 98.2 per cent implementation rate, although its total health expenditure of ₦13.24 billion ranked 24th nationwide.
On a per capita basis, spending remained low. States averaged ₦3,483 per person on health, with no state exceeding ₦10,000 per capita. Only Lagos, Bayelsa, Edo, Abia, Kwara, Niger, and Delta spent above ₦5,000 per person.
Mr. Oluseun Onigbinde, Global Director of BudgIT, warned that while states have experienced rising revenue inflows from federation allocations, much of the additional income has not been effectively channelled into critical social services like healthcare.
“The report serves as a mirror reflecting the choices our state governments make, the paths they follow, and the opportunities they seize or leave behind,” Onigbinde said. He urged states to prioritise fiscal accountability, innovation, and investments that directly impact citizens.
Dr. Uche Amaonwu, Nigeria Country Director of the Gates Foundation, congratulated BudgIT for a decade of promoting fiscal transparency. She emphasised that fiscal transparency is a tool to ensure public resources reach citizens effectively and highlighted BudgIT’s Primary Health Care Accountability Tracker as an example of how data can improve budget execution.
Amaonwu called on state governments to adopt strong financial management practices to ensure allocations to health, education, and human capital translate into real impact. “Fiscal health is human health, and governance, when transparent and accountable, is the bridge that connects both,” she said.
Mr. Taiwo Oyedele, commenting on the report, noted that while FAAC allocations and state revenues have increased—doubling from ₦5.4 trillion in 2023 to ₦11.4 trillion in 2024—many states still rely heavily on federal transfers, with 21 states depending on FAAC for at least 70 per cent of revenue.
He pointed out disparities in budget execution, with only two-thirds of education budgets and 62 per cent of health budgets implemented. Oyedele stressed the importance of shifting expenditure from recurrent costs to capital projects and human development. He praised states like Anambra, Lagos, and Enugu for sound fiscal management and urged others to prioritise infrastructure, productivity, and human capital.
The 2025 BudgIT State of States Report ranked Anambra as the top-performing state in fiscal management, followed by Lagos, Kwara, Abia, and Edo. Cross River, previously a top performer, fell significantly in ranking, while Yobe replaced Jigawa at the bottom.
The report evaluated 35 states across revenue generation, expenditure patterns, debt sustainability, and investments in education and health. It highlighted strong revenue growth, especially from FAAC transfers and internally generated revenue (IGR), though 28 states remain heavily reliant on federal allocations.
Capital expenditure is increasing, with 24 states allocating at least half their budgets to development projects, while recurrent costs and personnel spending continue to dominate in others. Debt management showed improvement, with 31 states reducing domestic debt.
BudgIT called for stronger fiscal sustainability through improved revenue systems, reduced waste, and prioritisation of infrastructure and human development, urging states to convert revenue gains into tangible benefits for citizens.
