The Washington-based World Bank on Thursday tasked state governments to convert the substantial fiscal space created by recent economic reforms into better jobs, public services, and living standards.
The bank said increased revenues would have limited development impact if not matched by more efficient and accountable spending.
World Bank disclosed that revenues allocated to states, or subnational governments in Nigeria grew by 93 per cent in real terms over two years.
The bank made this disclosure in its October Nigeria Development Update.
According to the World Bank, revenue allocations to states surged following the removal of fuel subsidy between 2023 and 2025.
However, the bank noted that higher revenues to states should translate into improved living standards for citizens and poverty reduction.
The World Bank urged state governments to improve spending efficiency and invest more in human capital to raise living standards and reduce poverty.
In his remarks, the World Bank Country Director for Nigeria, Mathew Verghis, said, “strengthening spending efficiency, accountability, and service delivery will be essential to ensuring that public resources improve the lives of Nigerians.”
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