Nigerian States Health Budgets Fall Short

A recent report by BudgIT, a civic tech non-profit organisation, has revealed that only seven states in Nigeria implemented more than 80 per cent of their health budgets in 2024. The report, titled “A Decade of Subnational Fiscal Analysis,” was launched in Abuja and highlighted the need for states to prioritise health funding.

According to the report, Nigerian states collectively budgeted N1.32 trillion for health in 2024, but actual spending fell short, reaching only N816.64 billion, representing a 61.9 per cent budget performance. Yobe state led with a 98.2 per cent implementation rate, while other top-performing states included Gombe, Ekiti, Lagos, Edo, Delta, and Bauchi.

The report also noted that states spent an average of N3,483 per person on health, with no state exceeding N10,000 per person. Only Lagos, Bayelsa, Edo, Abia, Kwara, Niger, and Delta spent more than N5,000 per capita. Mr Oluseun Onigbinde, Global Director of BudgIT, warned that despite increased revenue inflows, much of the additional income has not been effectively channelled into critical social services like healthcare.

The report serves as a call to action, urging states to prioritise fiscal accountability, innovation, and investment in sectors that directly impact citizens. Dr Uche Amaonwu, Nigeria Country Director of the Gates Foundation, congratulated BudgIT on its efforts to promote fiscal transparency and accountability, noting that sound fiscal systems and governance improve service delivery and empower citizens.

The report’s findings have significant implications for Nigeria’s healthcare system, highlighting the need for states to improve their fiscal management and prioritise health funding. With the country’s healthcare system facing numerous challenges, the report’s call to action is timely and important. As the country moves forward, it is essential that states take ownership of their performance and adopt strong financial management practices to ensure that every naira allocated to healthcare delivers real impact.

The 2025 BudgIT State of States Report marks a decade of subnational fiscal analysis in Nigeria, showing both progress and persistent challenges. The report’s key findings include strong growth in total state revenue, particularly from FAAC transfers and internally generated revenue, though many states remain heavily reliant on federal allocations. As Nigeria continues to navigate its fiscal challenges, the report’s recommendations for deeper fiscal reforms, responsible debt management, and greater investment in education and health are crucial for the country’s development.

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