A new World Bank report reveals that Nigerian state government revenues surged by 93% in real terms between 2023 and 2025, driven by FX reforms and the removal of petrol subsidies. Consequently, state capital expenditure rose significantly, with the share of total spending allocated to capital projects climbing from 46% to 61%. While investments in transport, housing, and agriculture grew, the share of expenditure dedicated to education declined. The World Bank urged states to prioritize spending efficiency and transparency to translate these fiscal gains into better public service delivery and improved living standards for citizens.