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(Photo) A map of Nigeria illustrating the 31 states whose fuel expenditure for vehicles,
plants and generators rose to N45.04bn in the first half of 2026. |
Nigerian state governments spent N45.04bn fuelling motor vehicles, plants and generators in the first six months of 2026, a 14.35 per cent increase over the N39.38bn recorded in the same period of 2025, according to a special report published on Friday, November 6, 2026 by PM Parrot, which analysed the states' first-half budget implementation documents.
How much did states spend on fuel in the first half of 2026?
Of the N45.04bn total, N28.52bn went into fuelling plants and generators, while motor vehicles accounted for N16.52bn. The analysis focused on two budget lines, Motor Vehicle Fuel Cost and Plant/Generator Fuel Cost, and excluded aircraft fuel, cooking gas, other transport equipment, maintenance and power-plant gas, so the figures understate the full energy bill states carry.
Why did the fuel bill rise?
The report ties the increase to global oil prices. Brent crude rose from about $61 per barrel at the beginning of 2026 to over $100 after the Middle East conflict disrupted shipping through the Strait of Hormuz, pushing up the cost of petrol and diesel on the domestic market. The surge landed on states that already depend heavily on generators: the same week, Lagos State's energy commissioner disclosed that the state relies on an estimated 4.5 million fossil-fuel generator sets because the national grid meets only about 20 per cent of the state's electricity demand.
Which states spent the most and the least?
Kano's combined fuel expenditure rose 14.70 per cent to N2.99bn, of which N2.62bn went to plants and generators and N368.27m to motor vehicles. Ekiti spent N2.81bn, up 20.46 per cent from N2.33bn a year earlier. At the lower end, Kebbi recorded the smallest combined fuel expenditure, followed by Oyo, Kogi with N288.05m, Delta with N358.19m and Cross River with N371.32m. Kebbi and Delta reported no actual expenditure under their motor vehicle fuel lines in the period, so their totals came entirely from plant and generator fuel.
What does it mean for state finances?
The 31 states generated N2.29tn internally and received N4.95tn through their reported share of FAAC allocations in the first half of 2026, bringing combined receipts to N7.23tn. The fuel bill was equivalent to 0.62 per cent of those receipts, up from 0.60 per cent a year earlier, a modest share but one moving in the wrong direction at a time when states are competing for capital projects money. Every naira spent keeping vehicles and generators running is a naira not spent on roads, schools or clinics, and with global prices still elevated, the second-half figure is likely to be higher, not lower.
Frequently asked questions
How much did Nigerian states spend on fuel in the first half of 2026?
N45.04bn on motor vehicle, plant and generator fuel, a 14.35 per cent increase over the N39.38bn spent in the first half of 2025.
Which states spent the least on fuel?
Kebbi recorded the smallest combined fuel expenditure, followed by Oyo, Kogi, Delta and Cross River.
Why did state fuel spending rise?
Higher global oil prices after the Middle East conflict and Strait of Hormuz shipping disruptions, with Brent crude rising from $61 to over $100 per barrel.
What share of state receipts went to fuel?
0.62 per cent of the N7.23tn the 31 states generated internally and received through FAAC, up from 0.60 per cent a year earlier.
Sources: PM Parrot (special report, November 6, 2026), state budget implementation documents for the first half of 2026. Related: NNPC Plans 5-10% Stake Sale In IPO That Could Go To London Or New York
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