A Photo File of President Bola Tinubu

Most Nigerian states failed to meet their capital expenditure targets in the first half of 2025, despite higher revenues from subsidy removal and exchange rate reforms.

Budget Implementation Reports from 31 states show that a total of ₦2.75 trillion was spent on capital projects between January and June, representing only 15.7 per cent performance against the ₦17.51 trillion budgeted for capital expenditure this year.

The figures mirror last year’s performance when states allocated ₦11.34 trillion for capital projects in 2024 but failed to implement nearly ₦4 trillion worth, due to low revenues and heavy recurrent spending.

Some states, however, recorded stronger capital performance than others. Imo led in absolute spending with ₦188.1bn on capital projects, while Enugu recorded the highest capital-to-recurrent ratio, spending ₦99.59bn on capital against ₦22.06bn on recurrent. Bayelsa and Kebbi also prioritised capital expenditure, with 69 per cent and 68 per cent of their budgets, respectively, allocated to projects.

Others tilted more towards recurrent expenditure. Kogi spent ₦133.22bn on recurrent costs against ₦73.16bn capital, while Ekiti recorded ₦101.1bn recurrent against ₦56.1bn capital. In Osun, recurrent expenditure stood at ₦89.37bn, compared to ₦57.13bn on capital.

Governments blamed insecurity, procurement delays, and rising costs for the shortfall. In Benue, where capital expenditure was ₦23.32bn against ₦44.5bn recurrent, Governor Hyacinth Alia said insecurity had stalled projects. Over 200 people were killed in Yelwata community in June, halting ongoing road and agricultural works.

Jigawa State also reported delays caused by procurement processes, with many projects still awaiting contract approvals by mid-year.

The low capital spending comes despite increased allocations from the Federation Account. President Bola Tinubu recently urged governors to channel more resources into infrastructure, rural development, and education, warning that revenue gains must translate into visible improvements in people’s lives.

So far, however, most states remain off track, with stalled projects and weak capital performance raising concerns about underdevelopment as the year progresses.