Thirty-one Nigerian 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 compared with the ₦39.38bn recorded during the corresponding period of 2025.
An analysis of the states' second-quarter budget implementation reports by The PUNCH revealed that the expenditure increased by approximately ₦5.65bn within one year, despite efforts to manage government operating costs amid rising fuel prices.
The amount translates to an average monthly expenditure of ₦7.51bn, or approximately ₦248.82m every day, across the 31 states covered by the analysis.
The report attributed the increase partly to rising global oil prices following the Middle East conflict and disruptions to shipping through the Strait of Hormuz, which pushed Brent crude prices from about $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-conflict levels, adding pressure to government spending.
Of the total ₦45.04bn expenditure, ₦28.52bn went into fuelling plants and generators, while ₦16.52bn was spent on government vehicles.
Spending on plants and generators increased by ₦3.64bn, representing a 14.63 per cent rise from ₦24.88bn in the first half of 2025, while vehicle fuel expenditure climbed by ₦2.01bn, or 13.88 per cent, from ₦14.50bn.
Generators and plants consequently accounted for 63.33 per cent of the combined fuel bill, demonstrating how heavily state governments relied on fuel-powered facilities to support their operations.
The analysis further showed that 24 of the 31 states increased their combined fuel expenditure, while only seven recorded reductions during the six-month period.
Lagos State emerged as the biggest spender, recording ₦8.93bn compared with ₦7.65bn in the first half of 2025, an increase of ₦1.28bn or 16.79 per cent.
The state's expenditure represented 19.83 per cent of the combined fuel bill, with ₦8.26bn spent on plants and generators and ₦670.20m allocated to motor vehicle fuel.
Yobe State ranked second with ₦3.42bn, representing a 20.72 per cent increase from ₦2.83bn recorded a year earlier, with almost all its expenditure directed towards plants and generators.
Nasarawa occupied the third position after spending ₦3.29bn, compared with ₦2.02bn in the corresponding period of 2025, representing a significant increase of 62.59 per cent.
Its additional expenditure of approximately ₦1.26bn was the second-largest absolute increase among the states and accounted for 22.38 per cent of the overall rise recorded across the 31 governments.
Kano State followed with ₦2.99bn, representing a 14.70 per cent increase, while Ekiti spent ₦2.81bn, up by 20.46 per cent from the previous year's ₦2.33bn.
Edo State recorded ₦2.74bn, representing a 20.54 per cent increase, but stood out among the leading spenders because its expenditure was driven mainly by motor vehicle fuel, which accounted for ₦2.36bn.
Other states that spent more than ₦1bn included 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.
At the lower end of the spending table, Kebbi recorded the smallest expenditure at ₦3.06m, followed by Oyo with ₦11.54m, Kogi with ₦288.05m, Delta with ₦358.19m and Cross River with ₦371.32m.
Despite its relatively low total expenditure, Cross River recorded the fastest percentage increase, with its fuel bill rising by 353.17 per cent from ₦81.94m in 2025.
Enugu followed with a 282.54 per cent increase, while Delta and Anambra recorded increases of 236.92 per cent and 86.06 per cent, respectively.
Among states that reduced their spending, Oyo recorded the sharpest decline of 98.59 per cent, followed by Sokoto, whose expenditure dropped by 66.77 per cent, and Borno, which recorded a 61.18 per cent reduction.
The PUNCH also compared the fuel expenditure with the states' internally generated revenue and receipts from the Federation Account Allocation Committee, revealing that the 31 governments generated ₦2.29tn internally and received ₦4.95tn through their reported share of FAAC during the first half of 2026.
Their combined receipts stood at ₦7.23tn, making the ₦45.04bn fuel expenditure equivalent to 0.62 per cent of their total revenue, compared with 0.60 per cent in the corresponding period of 2025.
Although combined revenue increased by 10.63 per cent, fuel expenditure grew at a faster rate, highlighting the continuing pressure of energy costs on state government finances.
The figures also show that fuel spending 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 internally generated revenue increased by 28.84 per cent.
The findings raise questions about the growing cost of powering government facilities and maintaining official vehicles, particularly as states continue to face demands for infrastructure, public services and improved financial efficiency.