States’ Fuel Spending Rises 14.35% to ₦45bn

Thirty-one state governments spent ₦45.04 billion on vehicle, plant and generator fuel in the first half of 2026, with Lagos recording the highest bill as rising energy costs put pressure on public finances

Thirty-one Nigerian state governments spent a combined ₦45.04 billion on fuel for motor vehicles, plants and generators between January and June 2026, representing a 14.35 per cent increase from the ₦39.38 billion recorded during the same period in 2025.

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An analysis of the states’ second-quarter budget implementation reports by Freshupdate showed that the increase amounted to ₦5.65 billion, with Lagos, Yobe, Nasarawa, Kano and Ekiti among the biggest spenders.

The expenditure translated to an average of approximately ₦7.51 billion monthly, or ₦248.82 million daily, across the 31 states.

The increase came amid a sharp rise in international oil prices following the escalation of conflict in the Middle East and disruptions to shipping through the Strait of Hormuz.

The US Energy Information Administration reported that Brent crude prices rose from about $61 per barrel at the beginning of 2026 to more than $100 in March, following military action in the region and the disruption of shipping through the strategic waterway.

The International Monetary Fund also reported that Nigerian petrol and diesel prices increased by 22.5 per cent and 16 per cent, respectively, in March compared with their pre-war levels, adding to the cost of running government operations.

The analysis compared actual expenditure under the budget lines for motor vehicle fuel and plant or generator fuel during the first six months of 2025 and 2026. It covered the same 31 states in both periods to maintain consistency.

It excluded separately classified expenses such as aircraft fuel, cooking gas, other transport equipment, maintenance and power-plant gas.

Of the ₦45.04 billion spent in the first half of 2026, plants and generators accounted for ₦28.52 billion, while motor vehicles consumed ₦16.52 billion.

Plant and generator fuel expenditure rose by ₦3.64 billion, or 14.63 per cent, from ₦24.88 billion in the corresponding period of 2025. Vehicle fuel costs increased by ₦2.01 billion, or 13.88 per cent, from ₦14.50 billion.

This means plants and generators accounted for 63.33 per cent of the total fuel bill and 64.38 per cent of the overall increase.

The figures also showed that 24 of the 31 states increased their combined fuel expenditure, while seven recorded reductions. Thirteen states spent more than ₦1 billion during the period.

Lagos topped the list with ₦8.93 billion, compared with ₦7.65 billion in the first half of 2025. The state’s expenditure increased by ₦1.28 billion, representing a 16.79 per cent rise.

Its spending accounted for 19.83 per cent of the combined fuel bill across the 31 states and 22.71 per cent of the total increase.

Most of Lagos’s expenditure went towards plants and generators, which consumed ₦8.26 billion. Motor vehicle fuel accounted for the remaining ₦670.20 million.

Yobe ranked second, spending ₦3.42 billion, up from ₦2.83 billion a year earlier, representing a 20.72 per cent increase.

Almost all the state’s expenditure went into running plants and generators, which accounted for ₦3.39 billion. Motor vehicle fuel cost just ₦35.76 million.

Nasarawa followed with ₦3.29 billion, compared with ₦2.02 billion in the first half of 2025. Its expenditure increased by ₦1.26 billion, or 62.59 per cent, making it one of the states with the largest contributions to the overall rise.

The state spent ₦1.77 billion on plant and generator fuel and ₦1.51 billion on motor vehicles.

Lagos and Nasarawa together accounted for 45.09 per cent of the total increase in fuel expenditure across the states, highlighting the concentration of additional spending in the two states.

Kano recorded ₦2.99 billion, representing a 14.70 per cent increase from ₦2.61 billion in the corresponding period of 2025. Plant and generator fuel accounted for ₦2.62 billion, while motor vehicle fuel cost ₦368.27 million.

Ekiti spent ₦2.81 billion, up from ₦2.33 billion, representing a 20.46 per cent increase. Its plant and generator fuel bill stood at ₦2.38 billion, while vehicle fuel accounted for ₦430.95 million.

Edo recorded ₦2.74 billion, a 20.54 per cent increase from ₦2.28 billion a year earlier. Unlike most of the leading spenders, its expenditure was driven mainly by motor vehicles, which accounted for ₦2.36 billion. Plant and generator fuel cost ₦379.75 million.

The six leading states accounted for 53.69 per cent of the combined expenditure, while the 10 biggest spenders accounted for 69.42 per cent.

Other states that spent more than ₦1 billion included Ogun with ₦2.21 billion, Benue with ₦1.70 billion, Bauchi with ₦1.64 billion, Abia with ₦1.54 billion, Anambra with ₦1.26 billion, Adamawa with ₦1.12 billion and Borno with ₦1.09 billion.

Among states below the ₦1 billion mark, Jigawa recorded ₦997.09 million, followed by Kwara with ₦981.75 million, Bayelsa with ₦961.68 million, Enugu with ₦914.17 million and Gombe with ₦890.75 million.

Taraba spent ₦780.18 million, Ondo ₦744.39 million, Katsina ₦665.27 million, Plateau ₦632.96 million and Ebonyi ₦545.37 million.

Kebbi recorded the lowest expenditure at ₦3.06 million, followed by Oyo with ₦11.54 million, Kogi with ₦288.05 million, Delta with ₦358.19 million and Cross River with ₦371.32 million.

Sokoto recorded ₦375.50 million, Zamfara ₦376.58 million and Kaduna ₦401.19 million.

Kebbi and Delta reported no actual expenditure under their motor vehicle fuel budget lines during the period. Their combined figures therefore consisted entirely of spending on plant and generator fuel.

Despite recording one of the lowest absolute bills, Cross River had the fastest percentage increase. Its expenditure rose by 353.17 per cent, from ₦81.94 million in the first half of 2025 to ₦371.32 million in 2026.

Enugu followed with a 282.54 per cent increase, from ₦238.97 million to ₦914.17 million, while Delta’s expenditure rose by 236.92 per cent, from ₦106.31 million to ₦358.19 million.

Anambra also recorded a substantial increase of 86.06 per cent.

However, some states reduced their fuel expenditure during the period. Oyo recorded the largest decline, with spending falling by 98.59 per cent from ₦816.72 million to ₦11.54 million.

Sokoto’s expenditure dropped by 66.77 per cent, from ₦1.13 billion to ₦375.50 million, while Borno recorded a 61.18 per cent reduction, from ₦2.80 billion to ₦1.09 billion.

Kaduna reduced its fuel bill by 47.54 per cent, Kebbi by 32.57 per cent, Katsina by 25.91 per cent and Kogi by 10.86 per cent.

The analysis also compared the states’ fuel expenditure with their internally generated revenue and receipts from the Federation Account Allocation Committee.

The 31 states generated ₦2.29 trillion internally and received ₦4.95 trillion through their reported share of FAAC allocations during the first half of 2026. Their combined receipts stood at approximately ₦7.23 trillion.

The ₦45.04 billion fuel bill represented 0.62 per cent of the combined revenue, compared with 0.60 per cent in the corresponding period of 2025.

Overall revenue increased by 10.63 per cent from ₦6.54 trillion, meaning fuel expenditure grew at a faster rate than the states’ combined receipts.

However, when measured against internally generated revenue alone, the fuel bill declined from 2.22 per cent in 2025 to 1.97 per cent in 2026, as IGR increased by 28.84 per cent.

The figures suggest that although the states’ combined fuel expenditure increased, internally generated revenue grew more quickly, reducing the proportion of IGR absorbed by the two fuel categories.

The dominance of plant and generator costs also highlights the substantial expenditure required to keep government facilities and operations running on self-generated electricity.

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However, the figures do not establish how much of the spending was directly attributable to unreliable grid supply, nor do they measure the efficiency or necessity of individual states’ fuel purchases.