More Nigerian states are struggling to pay workers’ salaries without federal allocations.
Data from BudgIT’s 2024 report shows that 27 out of 36 states now depend on these funds to cover wages, up from 24 in 2023.
This financial strain is driven by the proposed ₦70,000 minimum wage, alongside a surge in political appointments.
As a result, state governments’ total wage bill has skyrocketed from ₦2.07 trillion in 2023 to ₦3.87 trillion in 2025.
The states with the highest wage bill increases include Niger (311.5%), Cross River (202%), and Taraba (162%), while Gombe was the only state with a slight decline.
Lagos remains the highest spender, allocating ₦401.1 billion for salaries.
Experts warn that over-reliance on federal allocations is unsustainable and could lead to financial instability. They urge states to enhance Internally Generated Revenue (IGR) to avoid deeper economic challenges.
