Thirty-one state governments spent N45.04bn fuelling motor vehicles, plants and generators in the first six months of 2026, representing a 14.35 per cent increase over the N39.38bn recorded in the corresponding period of 2025.
An analysis by The PUNCH of the states’ second-quarter budget implementation reports showed that the combined fuel bill increased by N5.65bn, with Lagos, Yobe, Nasarawa, Kano and Ekiti recording the highest expenditure.
The spending translates to an average of N7.51bn monthly, or approximately N248.82m daily, between January and June.
The increase in states’ fuel bills came amid higher global oil prices following the Middle East conflict and disruptions to shipping through the Strait of Hormuz, with Brent crude rising from $61 per barrel at the beginning of 2026 to over $100.
The International Monetary Fund said petrol and diesel prices in Nigeria rose by 22.5 per cent and 16 per cent, respectively, in March compared with pre-war levels, adding to operating costs.
The analysis examined cumulative first-half actual expenditure under “Motor Vehicle Fuel Cost” and “Plant / Generator Fuel Cost”, rather than annual budget provisions or spending during April to June alone.
It covered the same 31 states in both years to ensure a consistent comparison. Separately classified expenditure on aircraft fuel, cooking gas, other transport equipment, maintenance and power-plant gas was excluded.
Of the N45.04bn spent during the period, N28.52bn went into fuelling plants and generators, while motor vehicles accounted for N16.52bn.
Plant and generator fuel expenditure increased by N3.64bn, or 14.63 per cent, from N24.88bn in the first half of 2025. Vehicle fuel costs rose by N2.01bn, or 13.88 per cent, from N14.50bn.
Generators and plants consequently accounted for 63.33 per cent of the combined bill and 64.38 per cent of the year-on-year increase.
The findings showed that 24 of the 31 states increased their combined fuel spending, while seven recorded reductions. Thirteen states spent more than N1bn each.
Lagos recorded the highest expenditure at N8.93bn, up from N7.65bn in the corresponding period of 2025, representing an increase of N1.28bn, or 16.79 per cent.
The state alone accounted for 19.83 per cent of the combined spending and 22.71 per cent of the aggregate increase.
Its expenditure was dominated by plant and generator fuel, which reached N8.26bn, while motor vehicle fuel accounted for N670.20m.
Yobe followed with N3.42bn, compared with N2.83bn a year earlier, an increase of 20.72 per cent. Almost all its spending went into plants and generators, which consumed N3.39bn, against N35.76m for motor vehicles.
Nasarawa ranked third with N3.29bn, up from N2.02bn in the first half of 2025. Its N1.26bn increase represented growth of 62.59 per cent and accounted for 22.38 per cent of the total increase across the states.
The state spent N1.77bn on plant and generator fuel and N1.51bn on motor vehicle fuel.
Together, Lagos and Nasarawa accounted for 45.09 per cent of the aggregate increase, indicating that a substantial part of the additional spending was concentrated in the two states.
Kano’s combined expenditure rose by 14.70 per cent to N2.99bn from N2.61bn. Of the 2026 amount, N2.62bn went into plant and generator fuel, while N368.27m was recorded for motor vehicles.
Ekiti spent N2.81bn, compared with N2.33bn a year earlier, an increase of 20.46 per cent. Plant and generator fuel accounted for N2.38bn, while vehicles consumed N430.95m.
Edo followed with N2.74bn, up by 20.54 per cent from N2.28bn. Unlike several other leading spenders, its bill was driven mainly by motor vehicles, which accounted for N2.36bn, the highest vehicle-fuel expenditure in the sample. Plant and generator fuel cost N379.75m.
The six states together accounted for 53.69 per cent of the total fuel bill.
Other states with expenditure 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 biggest spenders accounted for 69.42 per cent of the combined expenditure.
Below the N1bn threshold, 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.
At the lower end, Kebbi recorded the smallest combined fuel expenditure at N3.06m, followed by Oyo with N11.54m, Kogi with N288.05m, Delta with N358.19m and Cross River with N371.32m.
Sokoto recorded N375.50m, Zamfara N376.58m and Kaduna N401.19m.
Kebbi and Delta reported no actual expenditure under their motor vehicle fuel lines in the first half of 2026. Their combined figures therefore consisted entirely of the amounts recorded for plant and generator fuel.
Cross River recorded the fastest percentage increase, with its bill rising by 353.17 per cent from N81.94m to N371.32m, although its expenditure remained among the lowest in absolute terms.
Enugu followed with an increase of 282.54 per cent, from N238.97m to N914.17m. Delta’s bill rose by 236.92 per cent from N106.31m to N358.19m, while Anambra recorded an increase of 86.06 per cent.
Among states recording reductions, Oyo’s expenditure fell by 98.59 per cent from N816.72m to N11.54m. Sokoto’s bill declined by 66.77 per cent from N1.13bn to N375.50m, while Borno recorded a 61.18 per cent reduction from N2.80bn to N1.09bn.
Kaduna’s expenditure fell 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.
The PUNCH further examined the fuel costs against the states’ internally generated revenue and receipts from the Federation Account Allocation Committee.
The 31 states generated N2.29tn internally and received N4.95tn through their reported government share of FAAC in the first half of 2026, bringing the combined receipts to N7.23tn.
Their N45.04bn fuel bill was equivalent to 0.62 per cent of these receipts, compared with 0.60 per cent in the corresponding period of 2025.
Fuel spending grew faster than the combined revenue, which increased by 10.63 per cent from N6.54tn.
However, the bill represented a smaller proportion of IGR, 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.
Source: punchng.com
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