Tinubu urges states to use ‘higher’ revenues prudently

Tinubu is asking state governments to treat higher revenues as a responsibility, not simply as money available for routine spending. He wants them to choose projects that make daily life better and strengthen health and education services. The goal is for economic reforms to produce visible benefits for households.

The World Bank reported that federation revenues rose 69 per cent in real terms between 2023 and 2025. States were the largest beneficiaries, and their capital spending increased 151 per cent in real terms. Tinubu urged them to direct this money toward useful investments rather than spending it without clear public benefit.

The Presidency said states invested mainly in roads, transport, agriculture, energy and housing. Tinubu also wants stronger social outcomes, including affordable healthcare, quality education, lower food prices and decent jobs. He said the government will continue reforms while pursuing more inclusive growth.

Government revenues are money collected by public authorities and used to operate government, provide services and fund projects. They can include money received through the federation and revenue raised internally by states. Higher revenues mean governments have more resources available, although the value of that increase must be considered alongside inflation.

In this Nigerian context, the Presidency said federation revenues increased 69 per cent in real terms between 2023 and 2025. It also reported that internally generated revenue grew in real terms in 31 of 35 states. These gains followed reforms that included fuel subsidy removal, foreign-exchange unification and stronger fiscal discipline.

The extra resources created fiscal space for every tier of government. States used part of it to raise capital spending by 151 per cent in real terms. Tinubu is urging them to use the money prudently, especially for health, education and projects that improve living standards.

Between 2023 and 2025, federation revenues rose 69 per cent in real terms, according to the World Bank report quoted by the Presidency. “Real terms” adjusts the comparison for inflation, so the figure describes an increase in purchasing power rather than merely a larger naira total.

States were identified as the largest beneficiaries of the revenue increase. Their capital spending rose 151 per cent in real terms during the same period. The reported spending went mainly toward roads and other transport, agriculture, energy and housing. Twenty-nine of 33 states shifted spending toward economic infrastructure.

These figures matter because capital spending finances longer-term projects, rather than only day-to-day administration. The article does not give the naira amounts behind the percentages. It does show that real social spending per person increased in all but one state, suggesting broader spending gains beyond infrastructure.

The government said its reforms changed the country’s fiscal position and created more room for public investment. The reforms named by Tinubu were removing the petrol subsidy, unifying the foreign-exchange market and strengthening fiscal discipline. He described them as difficult but necessary decisions.

The Presidency linked these measures to a 69 per cent real increase in federation revenues between 2023 and 2025. States were described as the largest beneficiaries, and their real capital spending rose 151 per cent. The mechanism presented is straightforward: higher public revenues create fiscal space, allowing governments to fund more projects and services.

The broader economic picture also improved in the figures cited. The economy grew 4.2 per cent in the first half of 2026, compared with 3.9 per cent a year earlier. Tinubu said more work remains, particularly to reduce food prices and create decent jobs.

States directed most of their additional resources toward economic infrastructure and productive sectors. The Presidency said the main areas were roads and other transport, agriculture, energy and housing. This matters because such projects can address practical barriers that affect how people travel, work, produce goods and access services.

The key mechanism is public investment. Better roads and transport can connect communities and markets. Agricultural spending can support productivity. Energy projects can improve access to power, while housing investment can address living conditions. The article does not measure the specific benefits of each project, so their precise effects cannot be quantified here.

The reported spending shift was broad: 29 of 33 states moved more toward economic infrastructure, while real social spending per person rose in all but one state. Tinubu nevertheless urged states to focus clearly on living standards, health and education as reforms continue.

Nigeria’s governments receive public money across federal, state and local levels, but the article does not explain the legal sharing formula or give each tier’s percentage. It does say that the reforms created fiscal space for every tier of government. Therefore, the exact distribution cannot be established from this source.

States were called the largest beneficiaries because the World Bank report credited the reforms with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states receiving the largest benefit. Their real capital spending then increased by 151 per cent. The article connects these developments, but gives no detailed allocation table.

The state-level results included more spending on roads, transport, agriculture, energy and housing. Internally generated revenue also grew in real terms in 31 of 35 states. Tinubu’s message was that states should manage these larger resources prudently and prioritise services that improve living standards.

When prices rise quickly, a government can receive more naira without gaining much additional purchasing power. A real-term increase removes the effect of inflation and shows whether revenue or spending truly grew in value. This distinction matters in Nigeria because the article reports high inflation, including 27.6 per cent in January 2025.

The World Bank figures therefore use real terms: federation revenues rose 69 per cent between 2023 and 2025, while state capital spending increased 151 per cent. These changes suggest a stronger increase in resources and investment than nominal naira figures alone would prove. The article also says real social spending per person rose in all but one state.

The figures point to greater capacity for public projects, but they do not guarantee better outcomes. Tinubu still urged states to spend prudently and focus on health, education and living standards. Inflation later slowed, but higher global fuel prices linked to the Middle East conflict slowed its decline.