Thirty-one state governments spent a combined N45.04bn on fuelling official vehicles, plants and generators between January and June 2026, representing a 14.35 per cent increase from the N39.38bn recorded during the corresponding period of 2025.
An analysis of the states’ second-quarter budget implementation reports by The PUNCH showed that the expenditure increased by N5.65bn, with Lagos, Yobe, Nasarawa, Kano and Ekiti accounting for the highest spending.
The amount translates to an average monthly expenditure of N7.51bn, or approximately N248.82m daily, during the six-month period.
The increase came amid rising global oil prices following the conflict in the Middle East and disruptions to shipping activities through the Strait of Hormuz, which pushed Brent crude prices from about $61 per barrel at the beginning of 2026 to above $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, further raising operating costs.
The analysis covered actual expenditure recorded by the same 31 states under the budget categories of motor vehicle fuel and plant/generator fuel in the first half of 2026, compared with the corresponding period of the previous year.
Of the N45.04bn spent, N28.52bn went into fuelling plants and generators, while N16.52bn was expended on motor vehicles.
Expenditure on plants and generators increased by N3.64bn, representing a 14.63 per cent rise from N24.88bn recorded in the first half of 2025. Vehicle fuel costs also rose by N2.01bn, or 13.88 per cent, from N14.50bn.
The figures showed that plants and generators accounted for 63.33 per cent of the total fuel expenditure and 64.38 per cent of the overall increase.
A breakdown revealed that 24 states recorded increases in their combined fuel expenditure, while seven reported reductions. Thirteen states spent more than N1bn during the period.
Lagos topped the list with N8.93bn, compared with N7.65bn in the corresponding period of 2025, representing an increase of N1.28bn or 16.79 per cent.
The state accounted for 19.83 per cent of the total expenditure and 22.71 per cent of the overall increase. Its spending was largely driven by plant and generator fuel, which gulped N8.26bn, while N670.20m went into vehicle fuel.
Yobe came second with N3.42bn, up from N2.83bn in 2025, representing a 20.72 per cent increase. Almost all the expenditure went into fuelling plants and generators, which accounted for N3.39bn, compared with N35.76m spent on motor vehicles.
Nasarawa ranked third with N3.29bn, rising from N2.02bn in the first half of 2025. The increase of N1.26bn represented a 62.59 per cent growth, accounting for 22.38 per cent of the total increase recorded across the states.
The state spent N1.77bn on plant and generator fuel and N1.51bn on motor vehicle fuel.
Lagos and Nasarawa jointly accounted for 45.09 per cent of the total increase in fuel expenditure.
Kano recorded N2.99bn, representing a 14.70 per cent increase from N2.61bn in the previous year. Of the amount, N2.62bn was spent on plants and generators, while motor vehicle fuel accounted for N368.27m.
Ekiti followed with N2.81bn, compared with N2.33bn in 2025, representing a 20.46 per cent increase. Plant and generator fuel accounted for N2.38bn, while N430.95m went into fuelling vehicles.
Edo recorded N2.74bn, an increase of 20.54 per cent from N2.28bn. Unlike most of the leading spenders, its expenditure was driven mainly by motor vehicle fuel, which gulped N2.36bn, the highest vehicle-fuel expenditure among the 31 states. Plants and generators accounted for N379.75m.
The six highest-spending states jointly accounted for 53.69 per cent of the total fuel bill.
Other states that spent above N1bn were Ogun, N2.21bn; Benue, N1.70bn; Bauchi, N1.64bn; Abia, N1.54bn; Anambra, N1.26bn; Adamawa, N1.12bn; and Borno, N1.09bn.
The 10 highest-spending states accounted for 69.42 per cent of the combined expenditure.
Among states that spent below N1bn, Jigawa recorded N997.09m, followed by Kwara with N981.75m, Bayelsa with N961.68m, Enugu with N914.17m and Gombe with N890.75m.
Taraba spent N780.18m, Ondo N744.39m, Katsina N665.27m, Plateau N632.96m and Ebonyi N545.37m.
Kebbi recorded the lowest expenditure at N3.06m, followed by Oyo with N11.54m, Kogi with N288.05m, Delta with N358.19m and Cross River with N371.32m.
Other states included Sokoto with N375.50m, Zamfara with N376.58m and Kaduna with N401.19m.
The report showed that Kebbi and Delta recorded no actual expenditure under their motor vehicle fuel categories during the first six months of 2026, with their combined figures coming entirely from plant and generator fuel costs.
Cross River recorded the highest percentage increase, with its expenditure rising by 353.17 per cent from N81.94m to N371.32m, although its overall spending remained among the lowest.
Enugu followed with a 282.54 per cent increase, from N238.97m to N914.17m, while Delta’s expenditure rose by 236.92 per cent from N106.31m to N358.19m. Anambra recorded an 86.06 per cent increase.
However, seven states recorded reductions. Oyo’s expenditure dropped by 98.59 per cent from N816.72m to N11.54m, while Sokoto recorded a 66.77 per cent decline from N1.13bn to N375.50m.
Borno’s fuel expenditure fell by 61.18 per cent from N2.80bn to N1.09bn. Kaduna recorded a 47.54 per cent reduction, Kebbi 32.57 per cent, Katsina 25.91 per cent and Kogi 10.86 per cent.
Further analysis of the figures against internally generated revenue and allocations from the Federation Account Allocation Committee showed that the 31 states generated N2.29tn internally and received N4.95tn in their reported share of FAAC allocations during the first half of 2026.
Their combined revenue receipts stood at N7.23tn, meaning the N45.04bn fuel expenditure represented 0.62 per cent of their total receipts, compared with 0.60 per cent in the corresponding period of 2025.
The fuel expenditure increased faster than the states’ combined revenue, which grew by 10.63 per cent from N6.54tn.
However, fuel costs accounted for a smaller proportion of internally generated revenue, declining from 2.22 per cent in 2025 to 1.97 per cent in 2026, following a 28.84 per cent increase in internally generated revenue.
[PUNCH]
