Nigeria’s 2025 fiscal year is under mounting pressure as ministers overseeing key infrastructure and service-delivery agencies grapple with a severe capital funding squeeze. Official data from the Budget Office of the Federation shows that Ministries, Departments and Agencies (MDAs) received less than N1tn for capital projects between January and July 2025 — despite a pro-rata benchmark of N10.81tn.
Capital Budget Performance Falls Below 10%
Under the 2025 appropriation, N18.53tn was earmarked for MDA capital projects. However, actual releases stood at just N834.8bn — a 7.72% performance rate, leaving a staggering N9.98tn funding gap.
Overall capital expenditure paints a similarly bleak picture. Of the N23.44tn total capital budget, only N3.60tn had been spent by July, representing a 73.7% shortfall.
The shortfall comes amid criticism of delayed fiscal reporting and transparency concerns under President Bola Tinubu’s administration.
Revenue Underperformance Worsens Capital Drought
Federal Government revenue for the period stood at N13.67tn — far below the N23.85tn pro-rata target. Weak oil revenue collections compounded fiscal stress, despite modest gains in Company Income Tax and VAT.
Notably, only 6.1% of total revenue was allocated to MDA capital projects, while recurrent spending continued largely uninterrupted.
Ministers Lament Project Stagnation
Several ministers have publicly expressed frustration over stalled infrastructure projects:
Health Sector: Prof. Mohammed Pate revealed that only N36m of the N218bn capital allocation to the health ministry was released, crippling project execution.
Transport Sector: Senator Saidu Alkali disclosed that the Ministry of Transportation received just about 1% of its N256.73bn capital budget.
Marine & Blue Economy: Adegboyega Oyetola confirmed only N202m was released out of N3.53bn approved.
Women Affairs: Imaan Sulaiman-Ibrahim reported that just 0.44% of the ministry’s N89.8bn capital vote was released.
National Assembly Raises Concerns
Lawmakers grilled the Accountant-General, Shamseldeen Ogunjimi, over zero capital releases and mounting contractor debts. Senate Finance Committee Chairman Sani Musa demanded urgent reforms, questioning why subsidy savings and forex reforms had not translated into capital funding.
Government Defends Fiscal Strategy
Minister of Budget and Economic Planning, Abubakar Bagudu, rejected claims that the 2025 budget is in disarray, arguing revenue constraints are a global reality and not unique to Nigeria.
However, analysts warn that continued prioritisation of recurrent spending over capital investment could slow economic growth, delay infrastructure delivery, and undermine public confidence.
