The figures were derived from an analysis comparing the original budget proposals submitted by state executives with the final appropriation laws passed by the assemblies. The discrepancies between these documents reveal substantial legislative additions, raising concerns about the sustainability of such spending increases, particularly as many states grapple with weak internally generated revenues and mounting debt obligations.
State budgets are typically divided into two major components: recurrent expenditure, which covers personnel costs, overheads, pensions, and routine government operations, and capital expenditure, which funds infrastructure and development projects. However, with many states struggling to meet their financial obligations, borrowing has become a common strategy to bridge budget deficits.
Data from the second quarter of 2025 shows that about 20 states collectively borrowed approximately 458 billion naira within just six months. During the same period, these states spent around 235.58 billion naira on servicing external debts—a sharp 68.4 percent increase compared to the 139.92 billion naira recorded in the first half of 2024. Additionally, ten states are currently planning to source about 4.287 trillion naira, mostly through loans and grants, to finance their budget shortfalls.
Despite repeated appeals from economists and civil society groups for fiscal prudence, legislative bodies in several states have continued to approve higher budget figures than those proposed by governors. In 2025 alone, 15 state assemblies increased their budgets by a combined 470 billion naira, further straining already fragile finances.
Key States with Major Budget Expansions
Lagos State recorded the highest increase, with its assembly approving an additional 207.51 billion naira, raising the budget from 4.237 trillion naira to 4.44 trillion naira. This follows a similar adjustment in 2025, when lawmakers added 360.88 billion naira to the governor’s proposal.
Akwa Ibom State saw its budget rise by 194 billion naira, a 14 percent increase from the initial 1.39 trillion naira proposal to 1.58 trillion naira. The adjustment affected both recurrent and capital spending, with recurrent expenditure climbing from 354 billion naira to 416.5 billion naira and capital expenditure increasing from 1.035 trillion naira to 1.167 trillion naira.
Cross River State, which had previously increased its 2025 budget by 40 billion naira, made an even larger adjustment this year, adding 180 billion naira to the governor’s 780.59 billion naira proposal, bringing the final budget to 961 billion naira.
Kano State approved a 109 billion naira increase, raising its budget from 1.368 trillion naira to 1.477 trillion naira, while Benue State added 89.5 billion naira, taking its budget from 605.51 billion naira to 695.01 billion naira.
Gombe State lawmakers increased the budget by 82 billion naira, from 535.69 billion naira to 617.95 billion naira, continuing a trend from 2025 when they had similarly raised spending by 49 billion naira.
Other states with notable increases include Delta (65 billion naira), Niger (40 billion naira), Ondo (31.6 billion naira), Osun (17.7 billion naira), Anambra (9 billion naira), Bayelsa (18.629 billion naira), and Nasarawa (27.7 billion naira).
States Where Budgets Remain Unpassed
While most states have finalized their 2026 budgets, legislative assemblies in Borno, Ebonyi, Kwara, and Sokoto are yet to pass their appropriation bills. These delays come amid ongoing debates and scrutiny over budget allocations and revenue projections.
In contrast, seventeen state assemblies did not alter the budget sizes proposed by their governors. These states include Oyo, Enugu, Kogi, Plateau, Katsina, Kaduna, Abia, Imo, Adamawa, Edo, Bauchi, Jigawa, Ogun, Kebbi, Ekiti, Yobe, and Zamfara.
Federal Parallels and Broader Implications
This pattern is not unique to state governments. At the federal level, the National Assembly has consistently expanded budget proposals beyond the figures submitted by the executive. In 2024, lawmakers added 2.24 trillion naira for constituency projects to the national budget, raising it from 27.5 trillion naira to 28.7 trillion naira. Similarly, in 2025, the legislature approved an additional 790 billion naira beyond the revised executive proposal, passing a final budget of 54.99 trillion naira.
Economists and financial analysts warn that these legislative adjustments exacerbate fiscal deficits, increase borrowing, and deepen debt vulnerabilities. With many states already struggling to generate sufficient revenue internally, the additional spending pressures—often financed through loans—further constrain their ability to respond to economic shocks.
Critics argue that the expansions in recurrent expenditure, particularly on personnel and overheads, reduce fiscal flexibility and divert resources away from critical infrastructure and development projects. This trend persists despite widespread calls for cost-cutting measures to ensure long-term financial sustainability.
As of now, the 2026 budgets of about 30 states have been signed into law, with a few still under legislative review. However, the continued practice of inflating budgets raises questions about fiscal discipline and the long-term economic stability of Nigeria’s subnational governments.
