Tinubu urges states to use ‘higher’ revenues prudently

President Bola Tinubu has urged state governments to judiciously utilize their increased revenues and focus on projects that improve the standard of living for Nigerians. This call comes following the World Bank's October 2026 Nigeria Development Update, titled "Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities."

The update confirms that the reforms of Tinubu's administration, including the removal of the fuel subsidy, unification of the foreign exchange market, and fiscal discipline, have raised the country's revenues and stabilised the economy. The report indicates that the states have benefited the most, with their revenues growing by 69% in real terms between 2023 and 2025.

The additional resources have been used to boost capital spending by 151% in real terms, with most of the increase going toward roads, transport, agriculture, energy, and housing. Twenty-nine of the 33 states shifted their spending towards economic infrastructure, and real social spending per person rose in all but one state. Tinubu emphasized that while the dividends of reform are becoming visible, more work remains to ensure they fully translate into better living standards, including lower food prices and decent jobs.