# Nigeria fiscal reform and human capital development > Live situation record from CLSTR: https://clstr.news/situations/nigeria-fiscal-reform-and-human-capital-development > Updated: 2026-10-12T13:37:31.000Z. Sources: 7. Developments: 2. The World Bank has advised Nigerian state governments to prioritize human capital development, such as education, healthcare, and water services, following a significant surge in fiscal revenues between 2023 and 2025. While state revenues rose by approximately 93 percent, World Bank Country Director Mathew Verghis noted that spending has leaned toward economic infrastructure and fiscal consolidation rather than human capital. In response to these fiscal trends, Nigeria’s Minister of Finance Taiwo Oyedele announced structural reforms to move toward outcome-based budgeting. This approach requires agencies to justify deviations from actual performance rather than relying on incremental projections. Following these developments, the Nigerian Federal Government has urged states to align their annual budgets with established development plans and sector priorities. Deborah Odoh, Permanent Secretary of the Federal Ministry of Budget and Economic Planning, emphasized that budgeting must serve as a financial expression of government priorities to address issues such as literacy struggles among primary school-aged children. The government is utilizing the HOPE-GOV initiative to help states reconcile planned activities with budget ceilings for the 2027 budget process. ## Timeline ### 2026-10-12: Nigeria Federal Government urges states to align budgets with development plans Nigeria's Federal Government is urging states to align budgets with development plans to address crises in primary healthcare and basic education literacy. 3 sources. https://clstr.news/cluster/nigeria-federal-government-urges-states-to-align-budgets-with-development-plans ### 2026-10-09: World Bank urges Nigeria to prioritize human capital amid revenue surge The World Bank urges Nigerian states to invest rising revenues into human capital and public services, while Finance Minister Taiwo Oyedele announces reforms to end overlapping budgets. 5 sources. https://clstr.news/cluster/world-bank-urges-nigeria-to-prioritize-human-capital-amid-revenue-surge --- Cite as: Nigeria fiscal reform and human capital development. CLSTR, https://clstr.news/situations/nigeria-fiscal-reform-and-human-capital-development