The total amount spent by Nigerian state governments on salaries and allowances for civil servants has jumped from N2.036 trillion in 2024 to N3.87 trillion in 2025. This sharp increase of 90% is largely due to the implementation of the new N70,000 minimum wage and an increase in political appointments.
Can States Afford the New Minimum Wage?
Despite budgeting N2.8 trillion for salaries, states ended up paying only N2.036 trillion in 2024, a shortfall of N764 billion. This raises concerns about whether they can fully implement the new wage increase.
A budget analysis shows that 27 out of 36 states cannot pay their workers’ salaries without relying on federal government allocations. This means only 9 states—Lagos, Abia, Benue, Enugu, Ogun, Niger, Kaduna, Kwara, and Osun—generate enough internal revenue to cover their wage bills.
States with the Biggest Salary Increases
- Cross River: +202% (from N35.02bn to N106.12bn)
- Niger: +311.5% (from N25.36bn to N104.301bn)
- Lagos: +78.2% (from N225.114bn to N401.12bn)
- Rivers: +105.6% (from N167.05bn to N343.196bn)
- Oyo: +84.3% (from N116.207bn to N214.116bn)
Criticism of Government Spending
The increase in personnel costs has led to criticism from economic analysts. Okechukwu Nwagunma, the Executive Director of the Rule of Law and Accountability Advocacy Centre, accused government officials of failing to manage resources efficiently. He pointed out that despite promises to cut costs, governments are creating new ministries and appointing more aides instead of reducing expenses.
With more states struggling to meet their salary obligations, experts warn that many may have to depend on borrowing or federal bailouts to sustain their wage bills.
