Promad Report: States’ Annual Budget Increases to N36.98tn in 2026

•  Lagos, Ogun, Delta, Enugu, others cross N1 trillion-threshold, commit to long-term capital development

James Emejo in Abuja

The total annual budget of the 36 states of the federation rose by 45 per cent to N36.98 trillion in 2026, from N25.58 trillion in 2025, according to a report by Promad Foundation.

The figure also indicated a 129 per cent increase compared to N16.15 trillion in states’ combined appropriation in 2024, and 11.17 trillion in 2023.

According to the 2026 Nigeria Subnational Budget Outlook by the foundation, the trend highlights growing state fiscal expenditure with stronger commitments to development priorities.

Promad stated that it was standard practice for all the states to prepare annual budgets outlining projected revenues and planned expenditures. These budgets provided a roadmap for governance, revealed sectoral priorities, and ensured transparency.

The foundation stressed that tracking allocations allowed stakeholders to check alignment with citizens’ realities, assess fiscal responsibility, monitor investments, and understand how public resources were used to drive development outcomes for the taxpayers.

According to the report, aggregate subnational budgets grouped by the six geopolitical zones, indicate each zone’s share of total state-level spending nationwide.

South-west accounted for 24 per cent of total subnational appropriation, while South-south accounted for 19 per cent, and North-west accounted for 17 per cent.

South-East represented 16 per cent of the total budget, North-central 13 per cent, and North-east 12 per cent.

The report further disclosed that 11 states crossed the N1 trillion budget mark in the period under review.

They included Lagos, N4.45 trillion; Rivers, N1.85 trillion; Ogun, N1.67 trillion; Delta, N1.73 trillion; Imo, N1.45 trillion; and Enugu, N1.62 trillion.

Others were Akwa Ibom, N1.39 trillion; Kano, N1.69 trillion; Niger, N1.07 trillion; Abia, N1.01 trillion; and Bayelsa, N1.06 trillion.

The report said many states were investing in roads, transport networks, school construction, and rehabilitation programmes.

It stated that health and agriculture also attracted significant funding in several states, reflecting efforts to strengthen service delivery and support economic resilience.

Of Lagos’ budget, N2.31 trillion or 52 per cent was earmarked for capital expenditure, while N2.23 trillion was set aside for recurrent spending.

Enugu set aside N1.3 trillion or 80 per cent for capital spending and N321.31 billion or 20 per cent for recurrent expenditure.

Delta budgeted N1.21 trillion or 70 per cent for capital expenditure and N518.96 billion or 30 per cent to recurrent expenditure, while Imo set aside N1.2 trillion or 83 per cent of its budget for capital spending and N244.63 billion for recurrent spending.

The report pointed out, “Overall, the distribution of capital spending illustrates how subnational governments are directing resources towards long-term development and state specific priorities.”