The amount budgeted for personnel costs, including salaries and allowances to state civil servants, has increased from N2.036tn spent in 2024 to N3.87tn in the approved 2025 budget.
Although the 36 sub-national allocated a total sum of N2.8tn as salaries costs, it only paid out a total of N2.036tn within the 12 months of 2024, a reduction of N764bn, according to its budget implementation report.
According to data obtained from the 2025 approved budget of the 36 state governments, the increase occasioned by the implementation of the newly approved N70,000 minimum wage and spiralling political appointments reflects an increase of nearly 90.23 per cent.
The approved budgets are also contained in Open States, a BudgIT-backed website that serves as a repository of government budget data.
The budget report also indicated that at least 27 states of the federation would not be able to pay workers’ salaries this year without having to wait for federal allocations from the central government.
In July 2024, President Bola Tinubu officially approved a significant increase in the minimum wage for Nigerian workers, raising it from N30,000 to N70,000.
This decision came after several months of rigorous discussions and negotiations between the government and labour unions.
However, the implementation of this wage increase has been gradual across the country, with some states still yet to adopt the new minimum wage.
In response to this delay, the Nigerian Labour Congress issued a stern ultimatum to state governments, demanding that they fully implement the new wage structure by December 1, 2024.
Despite this pressure, several states have yet to initiate the payment of the revised minimum wage, further prolonging the financial relief workers were expecting.
An in-depth analysis of the budget document revealed significant variations in personnel costs across states: 20 states saw an increase in personnel expenses exceeding 50 per cent, while 16 states experienced a more modest rise, with salary increases remaining below the 50 per cent threshold.
