Abuja, Nigeria – August 20, 2025
At least 31 Nigerian states have reported significant shortfalls in their capital expenditure for the first half of 2025, disbursing only ₦2.75 trillion out of a total ₦17.51 trillion budgeted for the year.
Findings from states’ second-quarter Budget Implementation Reports, indicate that capital spending remained far below expectations despite ambitious budget provisions aimed at boosting infrastructure development.
The underperformance has been linked to procurement delays, worsening insecurity, and rising costs of goods and services, which have disrupted project execution across several regions.
While the reports highlight systemic challenges undermining fiscal implementation, independent verification of the disbursement figures from official state releases is still limited. Analysts also note that broader structural issues such as heavy recurrent spending and revenue shortfalls contribute to the gap between budgetary projections and actual execution.
The findings underscore ongoing fiscal pressures facing state governments, raising concerns over the pace of infrastructure delivery in 2025.