The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenue has influenced spending priorities across the federation.
The report was made available to the News Agency of Nigeria (NAN) by the World Bank in Washington, D.C. According to the report, aggregate state revenue increased by approximately 93 per cent in real terms during the period, while expenditure rose by 92 per cent.
The World Bank attributed the revenue growth partly to exchange-rate reforms, the removal of petrol subsidies, improved revenue administration and increased allocations from the Federation Account.
It said the states also benefited from refunds, the settlement of longstanding federal obligations, intervention funds and stronger Value Added Tax collections.
Despite the increase in available resources, the share of state expenditure allocated to education fell from 14.9 per cent in 2021 to 12.1 per cent in 2025. Health expenditure remained broadly stable at about seven per cent, while social protection spending increased from 1.4 per cent to 4.4 per cent over the period.