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

An analysis of the states’ second-quarter budget implementation reports showed that their combined fuel expenditure rose by ₦5.65bn, with Lagos, Yobe, Nasarawa, Kano and Ekiti among the highest spenders.

The amount translates to an average monthly expenditure of ₦7.51bn, or approximately ₦248.82m daily.

The increase came amid rising global oil prices following the Middle East conflict and disruptions to shipping through the Strait of Hormuz. Brent crude rose from $61 per barrel at the beginning of 2026 to more than $100.

The International Monetary Fund also reported that petrol and diesel prices in Nigeria increased by 22.5 per cent and 16 per cent, respectively, in March compared with pre-war levels.

Generators Account for 63% of Spending

Of the ₦45.04bn spent, ₦28.52bn went into fuelling plants and generators, while motor vehicles accounted for ₦16.52bn.

Expenditure on plants and generators increased by ₦3.64bn, or 14.63 per cent, from ₦24.88bn in the first half of 2025. Vehicle fuel costs rose by ₦2.01bn, or 13.88 per cent, from ₦14.50bn.

Generators and plants therefore accounted for 63.33 per cent of the total fuel bill and 64.38 per cent of the increase recorded year-on-year.

The analysis showed that 24 of the 31 states increased their combined fuel expenditure, while seven recorded reductions. Thirteen states spent more than ₦1bn each.

Lagos Records Highest Expenditure

Lagos recorded the highest fuel expenditure at ₦8.93bn, compared with ₦7.65bn in the corresponding period of 2025. The amount represented an increase of ₦1.28bn, or 16.79 per cent.

The state accounted for 19.83 per cent of the combined spending by the 31 states. Its expenditure was largely driven by plants and generators, which consumed ₦8.26bn, while motor vehicle fuel accounted for ₦670.20m.

Yobe followed with ₦3.42bn, up from ₦2.83bn a year earlier. Almost all its expenditure went into plants and generators, which accounted for ₦3.39bn, compared with ₦35.76m for vehicles.

Nasarawa ranked third with ₦3.29bn, rising from ₦2.02bn in the first half of 2025. Its expenditure increased by ₦1.26bn, representing 62.59 per cent growth.

The state spent ₦1.77bn on plant and generator fuel and ₦1.51bn on motor vehicle fuel.

Kano recorded ₦2.99bn, up by 14.70 per cent from ₦2.61bn, while Ekiti spent ₦2.81bn, representing a 20.46 per cent increase from ₦2.33bn.

Edo followed with ₦2.74bn, up by 20.54 per cent from ₦2.28bn. Unlike several other leading spenders, its expenditure was driven mainly by motor vehicles, which accounted for ₦2.36bn. Plants and generators consumed ₦379.75m.

The six states together accounted for 53.69 per cent of the total fuel bill.

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

Cross River Records Highest Percentage Increase

The 10 biggest spenders accounted for 69.42 per cent of the combined expenditure.

Below the ₦1bn mark, Jigawa recorded ₦997.09m, Kwara ₦981.75m, Bayelsa ₦961.68m, Enugu ₦914.17m and Gombe ₦890.75m.

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

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

Sokoto spent ₦375.50m, Zamfara ₦376.58m and Kaduna ₦401.19m.

Cross River recorded the highest percentage increase, with its expenditure rising by 353.17 per cent from ₦81.94m to ₦371.32m.

Enugu followed with a 282.54 per cent increase, from ₦238.97m to ₦914.17m, while Delta’s spending rose by 236.92 per cent, from ₦106.31m to ₦358.19m. Anambra recorded an 86.06 per cent increase.

Among states that recorded reductions, Oyo’s expenditure fell by 98.59 per cent, from ₦816.72m to ₦11.54m.

Sokoto recorded a 66.77 per cent decline, from ₦1.13bn to ₦375.50m, while Borno’s spending dropped by 61.18 per cent, from ₦2.80bn to ₦1.09bn.

Kaduna’s expenditure declined by 47.54 per cent, Kebbi’s by 32.57 per cent, Katsina’s by 25.91 per cent and Kogi’s by 10.86 per cent.

Fuel Bill Represents 0.62% of States’ Revenue

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 ₦2.29tn internally and received ₦4.95tn through their reported government share of FAAC in the first half of 2026, bringing their combined receipts to ₦7.23tn.

Their ₦45.04bn fuel expenditure represented 0.62 per cent of the combined receipts, compared with 0.60 per cent in the corresponding period of 2025.

Fuel spending grew faster than the states’ combined revenue, which increased by 10.63 per cent from ₦6.54tn.

However, fuel expenditure accounted for a smaller proportion of internally generated revenue, declining from 2.22 per cent in 2025 to 1.97 per cent in 2026, as IGR rose by 28.84 per cent.