State budgets rise but capital spending share drops
Nigeria’s 36 states and the Federal Capital Territory have increased their combined budgets, but the share allocated to capital projects has declined. While total spending has gone up, more funds are being directed to recurrent expenses rather than infrastructure. Experts warn this trend could impact economic growth and investment. Regional differences show some zones increased capital allocations, while others made cuts.
TLDR
- The combined budgets of the 36 states and the FCT rose from N27.22tn in 2025 to N40.14tn in 2026.
- Capital expenditure now accounts for 64.34% of the 2026 budgets, down from 73.24% in 2025.
- Some regions like the South-South, North-West, and North-East increased their capital spending, while South-East, South-West, and North-Central reduced theirs.
- President Bola Tinubu signed Nigeria’s N68.32tn 2026 Appropriation Act into law on 17th April 2026.
- Analysts say declining capital spending could weaken infrastructure and deter investment, despite the overall budget increase.
