Nigerian states risk spending less on critical infrastructure as they attempt to balance low revenue generation with prioritising capital and recurrent expenditure.
Nigeria’s federal ministries, departments, and agencies are struggling to execute capital projects despite improving government revenues, as delayed cash releases stall infrastructure spending, slow service delivery, and raise fresh concerns about the Tinubu administration’s ability to translate fiscal gains into economic growth and jobs.
A senior official at the Office of the Accountant General of the Federation (OAGF) told BusinessDay that capital releases have remained constrained, with only a fraction of appropriated funds for ongoing projects disbursed so far this year.
The official, who requested anonymity because she was not authorised to speak publicly, said the government is still funding rolled-over obligations from the previous fiscal cycle.
“The government is still disbursing about 30% of capital projects carried over into this year,” the official said. “We have not fully commenced implementation of the 2026 budget.”
