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.
A further breakdown showed that Abia, Cross Rivers, Ekiti, Niger, Rivers, and Taraba states got the highest increase in its payroll, exceeding 100 per cent of its 2024 personnel cost budget. While Gombe, Osun and Ondo got the lowest salary increase percentage, scoring below 15 per cent.
In a detailed examination of the salary increases across each state, Abia approved a notable increase in its personnel costs, with an escalation from N33.045bn to N77.34bn, representing a 134 per cent increase. Similarly, Adamawa’s personnel cost rose from N48.61bn to N74.23bn, marking a 52.7 per cent increase.
In Akwa Ibom, a sharp surge from N91.74bn to N126.69bn was approved, representing an impressive 38.1 per cent growth.
Anambra state, under Governor Charles Soludo, also approved a significant rise from N34.001bn to N63.41bn, indicating an 86.45 per cent increase.
Bauchi followed suit with an increase from N42.29bn to N70.41bn, showcasing an uplift of approximately 66.5 per cent.
Meanwhile, Bayelsa saw its personnel costs climb from N60.18bn to N114.21bn, a rise of over 89 per cent, signalling an emphasis on investing in its workforce.
In Cross River, the personnel cost grew sharply from N35.02bn to N106.12bn, reflecting a 202 per cent increase, one of the highest among the states. Delta also recorded a notable surge in its expenditure from N139.999bn to N185bn, signalling a growth of about 32.5 per cent.
Ebonyi followed with an increase from N23.076bn to N36.66bn, growing by 58.9 per cent.
Edo with its leap from N74.58bn to N101.29bn, reflected a 35.8 per cent increase, while Ekiti registered a substantial rise from N30.69bn to N62.51bn, almost doubling its personnel cost.
Enugu also saw a substantial rise from N47.988bn to N70.954bn, an increase of 48 per cent.
However, Gombe stood out with a negligible decrease in personnel costs, falling from N40.52bn to N40.28bn, a small dip of just 0.6 per cent.
On the other hand, Imo saw an increase from N41.92bn to N67.4bn, showing an upward trend of 60.9 per cent.
Jigawa experienced a jump from N51.445bn to N90.73bn, an increase of 76.4 per cent, while Kaduna’s personnel costs grew by 23.4 per cent from N68.010bn to N83.94bn.
Kano, one of the largest increases in this analysis, saw its personnel costs skyrocket from N89.97bn to a staggering N150.996bn, an impressive 67.8 per cent rise.
Katsina, which saw an increase from N29.69bn to N58.62bn, experienced a growth rate of 97.6 per cent. In Kogi, the personnel budget grew from N64.798bn to N109.96bn, an increase of 69.8 per cent.
Kwara followed a similar trend, rising from N51.045bn to N69.152bn, a growth of 35.5 per cent.
The largest increase came from Lagos, which saw its personnel costs more than double, from N225.114bn to N401.12bn.