Only seven of Nigeria’s 36 states spent more than 80 percent of their health budgets in 2024, according to civic tech group BudgIT.
The finding was revealed during the launch of BudgIT’s 2025 State of States Report, themed “ _A Decade of Subnational Fiscal Analysis,”_ held on Tuesday in Abuja.
BudgIT identified Yobe, Gombe, Ekiti, Lagos, Edo, Delta, and Bauchi as the top performers in health budget implementation.
Despite this progress, the report paints a sobering picture overall. Nigerian states collectively budgeted ₦1.32 trillion for healthcare in 2024, but actual spending amounted to just ₦816.64 billion—a performance rate of 61.9 percent.
Yobe topped the chart with a 98.2 percent implementation rate, though its total health expenditure stood at ₦13.24 billion, ranking it 24th in total spending.
On a per capita basis, the figures were even more troubling. The report shows states spent an average of ₦3,483 per person on health, with none surpassing the ₦10,000 mark. Only Lagos, Bayelsa, Edo, Abia, Kwara, Niger, and Delta exceeded ₦5,000 per capita.
*“A Mirror reflecting choices” — BudgIT Calls for smarter health investments*
BudgIT’s Global Director, Oluseun Onigbinde, warned that despite rising federation allocations, many states fail to channel resources effectively into essential services like healthcare.
He stressed the need for urgent reforms, saying 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.”
According to him, although transparency has improved over the past decade, many states still struggle to generate and manage funds efficiently, leaving citizens without adequate access to essential services.
> “The State of States is not BudgIT’s report alone; it is a call to action — a roadmap for reform,” Onigbinde said, urging states to prioritize accountability, innovation, and investment in sectors that directly impact citizens.
*Gates Foundation applauds progress but calls for fiscal discipline*
Also speaking at the event, Dr. Uche Amaonwu, Nigeria Country Director of the Bill & Melinda Gates Foundation, commended BudgIT for a decade of promoting fiscal transparency and accountability.
Amaonwu noted that while transparency is vital, it is only meaningful if it ensures public funds reach citizens effectively.
> “Fiscal health is human health, and governance, when transparent and accountable, is the bridge that connects both,” he said.
He emphasized the importance of data tools such as BudgIT’s Primary Health Care Accountability Tracker in improving budget execution and accountability. Amaonwu urged state governments to take full ownership of their performance and ensure that every naira spent in health, education, and human development delivers measurable impact.
*Fiscal gains but lingering dependence on FAAC*
Public finance expert Taiwo Oyedele reflected on a decade of fiscal reforms, noting both progress and persistent challenges.
He observed that while FAAC allocations and state revenues rose sharply—from ₦5.4 trillion in 2023 to ₦11.4 trillion in 2024—many states remain heavily dependent on federal transfers. In fact, 21 states rely on FAAC for at least 70 percent of their income.
Oyedele pointed out that only two-thirds of education budgets and 62 percent of health budgets were implemented, underscoring the need to shift spending from recurrent costs to capital and human development investments.
He praised Anambra, Lagos, and Enugu for strong fiscal management and urged others to improve, stressing that “governance is reflected in how states prioritize infrastructure, productivity, and human development.”
*Anambra leads 2025 rankings; Cross River declines*
According to the latest BudgIT State of States Report, Anambra emerged as the best-performing state in fiscal management, followed by Lagos, Kwara, Abia, and Edo.
In contrast, Cross River, once a top performer, dropped significantly, while Yobe replaced Jigawa at the bottom of the ranking.
The report evaluates 35 states based on revenue generation, expenditure patterns, debt sustainability, and investments in key sectors such as education and health.
Key findings include:
A steady rise in capital expenditure, with 24 states spending at least half their budgets on development projects.
31 states reduced domestic debt, signaling progress in debt management.
However, 28 states remain highly reliant on federal allocations, limiting fiscal independence.
Over the past decade, Lagos, Ogun, Delta, Kaduna, and Enugu consistently topped internally generated revenue (IGR) charts, while Borno and Ogun recorded the fastest IGR growth.
BudgIT concluded that lasting fiscal sustainability will require stronger revenue systems, reduced waste, and a sharper focus on infrastructure, education, and health.
> “States must turn rising revenues into real, measurable benefits for citizens,” the report urged.
NAN
