31 Nigerian States Spend ₦45bn on Fuel in First Half of 2026

Thirty-one state governments in Nigeria spent a combined ₦45.04bn on fuel for motor vehicles, plants, and generators between January and June 2026. This represents a 14.35 per cent increase from the ₦39.38bn recorded in the same period of 2025. The increase in fuel expenditure is attributed to rising global oil prices following the Middle East conflict and disruptions to shipping through the Strait of Hormuz.

An analysis of the states' second-quarter budget implementation reports showed that their combined fuel expenditure rose by ₦5.65bn. Lagos, Yobe, Nasarawa, Kano, and Ekiti were among the highest spenders. The amount translates to an average monthly expenditure of ₦7.51bn, or approximately ₦248.82m daily. Generators and plants accounted for 63.33 per cent of the total fuel bill and 64.38 per cent of the increase recorded year-on-year.

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. Twenty-four of the 31 states increased their combined fuel expenditure, while seven recorded reductions.

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 10 biggest spenders accounted for 69.42 per cent of the combined expenditure. Cross River recorded the highest percentage increase, with its expenditure rising by 353.17 per cent from ₦81.94m to ₦371.32m. The fuel bill represents 0.62 per cent of the states' revenue, compared with 0.60 per cent in the corresponding period of 2025.

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. 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.

Key points

• The 31 Nigerian states spent ₦45.04bn on fuel in the first half of 2026.
• Generators and plants accounted for 63.33 per cent of the total fuel bill.
• Lagos recorded the highest fuel expenditure at ₦8.93bn.