In Nigeria, where pothole-riddled roads, underfunded schools, and overstretched hospitals are daily realities for millions, the promise of new infrastructure often feels like a lifeline. Yet across the country, those hopes are fading as state governments slash capital spending, leaving critical projects such as bridges, water systems, and clinics unfinished or unstarted.
In the first half of 2025, 31 states collectively spent just N2.75 trillion on capital projects. That is barely 15.7 percent of the N17.51 trillion they had budgeted for the year. For ordinary Nigerians, this shortfall means longer commutes, limited access to healthcare, and children studying in crumbling classrooms as the gap between ambition and reality widens.
Capital expenditure, the money states invest in long-term projects such as roads, schools, and power grids, is the backbone of development. It is what turns promises of progress into tangible benefits: paved roads for farmers to transport crops, hospitals where mothers can deliver safely, or clean water systems that keep families healthy. But in 2025, states are falling far short.
The reasons are familiar. Procurement delays, rising insecurity, and skyrocketing costs of goods and services continue to undermine progress. Compounded by a reliance on federal allocations and weak internally generated revenue (IGR), many states have been forced to prioritize salaries and overheads instead of transformative projects. The result is a nation stuck in a cycle of underdevelopment, where grand budgets raise expectations only to be crushed by lackluster execution.
Take the case of Aisha, a schoolteacher in a rural community in Adamawa State. Her school’s roof leaks during the rainy season, forcing students to huddle under makeshift shelters. Although the state budgeted for new classrooms, only 54.1 percent of its N114.51 billion capital target had been spent by June 2025. Aisha’s students, like millions of others, are still waiting. In Benue State the situation is even bleaker. Only 14.7 percent of its N115.24 billion capital budget was disbursed, leaving farmers cut off from markets because promised roads remain unpaved, trapping communities in economic isolation.
Not all states are struggling equally. Enugu State stands out, directing 81.9 percent of its N121.65 billion total expenditure to capital projects. Imo State leads in absolute terms, spending N188.1 billion on infrastructure, though this is still just 29.3 percent of its ambitious N474.56 billion target. Bayelsa and Kebbi also show relative discipline, with 69 percent and 68 percent of their budgets going to projects.
These, however, remain exceptions. Most states continue to lean heavily on recurrent costs such as salaries, allowances, and administrative expenses, which consumed N2.35 trillion across the 31 states during the same period. This imbalance reflects a deeper issue: states’ dependence on the Federal Account Allocation Committee (FAAC), with Lagos being a rare standout due to its robust IGR.
The human toll is undeniable. In Cross River, where only 21 percent of the N180.94 billion capital budget was spent, residents like Chidi, a small business owner, face daily power outages that cripple his tailoring shop. The state’s failure to fund rural electrification projects leaves him reliant on costly generators, cutting into his profits and derailing his dreams of expansion.
Nationwide, the removal of the fuel subsidy and the devaluation of the naira have boosted state revenues, yet the expected infrastructure boom has not materialized. Instead, inflation and a recent minimum wage hike have driven up recurrent costs, squeezing budgets even further.
President Bola Tinubu, speaking in July 2025, urged governors to invest in rural electrification, agriculture, and poverty alleviation. The numbers, however, tell a different story.
Experts warn that this trend threatens long-term growth. Capital projects not only build infrastructure, they also create jobs, stimulate local economies, and improve quality of life. When states such as Akwa Ibom spend only 16.9 percent of their N490.91 billion capital budget, opportunities vanish.
Construction workers, suppliers, and small businesses lose out, while communities remain cut off from progress. The National Assembly has raised concerns, noting that capital spending directly benefits citizens, unlike recurrent costs that primarily serve government workers.
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The federal government itself is not immune. Its 2024 capital spending fell by 25.3 percent to N1.99 trillion. A 2023 Fitch report highlighted that states fail to execute 40 percent of their capital budgets on average, a trend that has stubbornly persisted.
Insecurity adds another layer of complexity. In Bauchi, where only N74.35 billion of a N178.66 billion capital budget was spent, banditry and communal clashes disrupted project sites and scared off contractors.
Procurement delays, often tied to bureaucratic inefficiencies or corruption, further stall progress. For citizens, this is more than delayed projects—it is a betrayal of trust. “We hear about billions allocated, but where are the roads? Where are the hospitals?” asks Fatima, a nurse in Katsina, where only 38.9 percent of the N331.29 billion capital budget was spent.
Solutions exist, but they require political will. States must boost IGR through efficient tax systems, as Lagos has done, to reduce reliance on federal handouts. Streamlining procurement processes and tackling insecurity head-on could unlock funds for projects. The federal government’s Renewed Hope Infrastructure Fund aims to prioritize capital spending, but execution remains the ultimate test.
