At least 20 states in Nigeria received grants totaling approximately ₦419 billion in the first half of 2024, while their combined wage bills amounted to ₦296 billion during the same period.
The beneficiary states include Yobe, Zamfara, Plateau, Ondo, Niger, Nasarawa, Kwara, Kogi, Kebbi, Katsina, Kano, Kaduna, Jigawa, Gombe, Borno, Bauchi, Adamawa, Osun, Enugu, and Abia. These figures were derived from an analysis of state budget implementation reports, compiled by Open Nigerian States, a BudgIT-supported platform for government budget data.
Breakdown of Grants and Wage Bills
Kogi State topped the list, receiving ₦61 billion in grants while incurring a wage bill of ₦17 billion. Yobe followed with ₦53 billion in grants and a wage bill of ₦18.5 billion. Zamfara received ₦52.8 billion in grants and spent ₦11.5 billion on salaries.
Other notable allocations include:
- Plateau: ₦3 billion (wage bill: ₦16 billion)
- Ondo: ₦32.5 billion (wage bill: ₦22 billion)
- Niger: ₦35 billion (wage bill: ₦13.9 billion)
- Nasarawa: ₦1.1 billion (wage bill: ₦16 billion)
- Kwara: ₦5.3 billion (wage bill: ₦17 billion)
- Kebbi: ₦6 billion (wage bill: ₦9 billion)
- Katsina: ₦8.3 billion (wage bill: ₦16 billion)
- Kano: ₦5.3 billion (wage bill: ₦27 billion)
- Kaduna: ₦11 billion (wage bill: ₦24 billion)
- Jigawa: ₦37 billion (wage bill: ₦9 billion)
Additional data shows Gombe received ₦2.3 billion with a wage bill of ₦7.8 billion, while Borno obtained ₦5.8 billion in grants and spent ₦9.4 billion on wages. Bauchi’s grant was ₦15 billion with a wage bill of ₦10 billion, and Adamawa received ₦19 billion against a ₦9 billion wage expenditure. Osun and Abia received ₦4.7 billion and ₦15.5 billion, respectively, with wage bills of ₦18 billion and ₦8 billion.
Revenue and Loans in 2024
In 2023, Nigeria’s 36 states collectively generated ₦8.66 trillion, a 31.2% increase from the ₦6.6 trillion recorded in the pro-subsidy era of 2022. Of this, ₦5.4 trillion was derived from the Federation Account Allocation Committee (FAAC), fueled by petrol subsidy removal and currency reforms introduced by the federal government.
Despite improved revenues, many states still relied on borrowing to meet financial obligations. Data reveals that 20 states secured ₦446.29 billion in loans during the first half of 2024. Debt servicing consumed 80.7% of the states’ Internally Generated Revenue (IGR) during the same period.
States’ Borrowing Profile
Some of the largest borrowers include:
- Oyo: ₦55 billion
- Kogi: ₦41 billion
- Nasarawa: ₦40 billion
- Kaduna: ₦36 billion
- Niger: ₦34 billion
- Katsina: ₦34 billion
- Gombe: ₦32 billion
Others include Ondo (₦20.8 billion), Cross River (₦20.6 billion), Borno (₦20.7 billion), and Bauchi (₦19 billion).
Meanwhile, Lagos State did not take new loans during this period, despite having $1.24 billion in external debt. Instead, Lagos spent ₦22.7 billion on external loan repayments and ₦89.5 billion on domestic loan repayments.
This report highlights the fiscal pressures many Nigerian states face despite increased revenue inflows, with debt servicing and wage bills constituting significant expenditure areas.
