Thirty-one Nigerian state governments spent a combined ₦45.04 billion on fuel for official vehicles, plants and electricity generators during the first six months of 2026.
The expenditure represents a 14.35 per cent increase from the ₦39.38 billion recorded by the same states during the corresponding period in 2025.
The figures were obtained from an analysis of state budget implementation reports published by The PUNCH.
The analysis showed that fuel expenditure increased by approximately ₦5.65 billion within one year, raising questions about the rising cost of government operations.
Lagos, Yobe Lead Fuel Expenditure
According to the report, Lagos State recorded the highest fuel expenditure at ₦8.93 billion, compared with ₦7.65 billion in the first half of 2025.
Yobe State followed with ₦3.42 billion, while Nasarawa spent ₦3.29 billion.
Kano and Ekiti recorded expenditure of ₦2.99 billion and ₦2.81 billion, respectively.
Edo State also recorded significant expenditure at ₦2.74 billion.
The analysis revealed that ₦28.52 billion of the total amount was spent on fuelling plants and generators.
Fuel for official vehicles accounted for the remaining ₦16.52 billion.
This means generator and plant fuel consumption represented more than 63 per cent of the combined expenditure.
The findings suggest that electricity generation remains a substantial operating cost for government institutions.
Rising Energy Costs Increase Government Spending
The increase occurred amid higher fuel prices and broader energy-market pressures.
According to the analysis, 24 of the 31 states recorded increases in combined fuel expenditure, while seven recorded reductions.
The report also compared fuel costs with states’ internally generated revenue and allocations from the Federation Account.
The 31 states generated approximately ₦2.29 trillion internally and received ₦4.95 trillion from the Federation Account during the first six months of 2026.
Their combined fuel expenditure represented about 0.62 per cent of those receipts.
Although fuel spending does not automatically indicate financial mismanagement, the rising costs highlight the importance of public-sector energy efficiency.
The findings raise questions about whether state governments can reduce operating expenses through improved electricity infrastructure, renewable energy and better fleet management.
The report covers 31 states and should not be interpreted as the combined fuel expenditure of all 36 Nigerian states.
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