Federal ministries, departments, and agencies in Nigeria recorded a cumulative capital expenditure shortfall of N15.21 trillion between 2023 and July 2025.
Budgeted capital votes for MDAs and others totalled N27.33 trillion over the period, while actual spending reached N12.13 trillion.
MDAs accessed only 44.37 per cent of allocated capital funds, leaving more than half unfunded.
In 2023, budgeted capital stood at N5.31 trillion, with actual expenditure of N3.25 trillion, yielding a N2.06 trillion gap.
The 2024 budget rose to N11.21 trillion, but spending hit N5.81 trillion, creating a N5.40 trillion shortfall.
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For January to July 2025, pro-rated budgeted capital was N10.81 trillion, against actual releases of N834.80 billion, resulting in a N9.98 trillion deficit.
Rising debt service obligations consumed large shares of retained revenue, limiting capital releases.
Debt service absorbed 83.15 per cent of retained revenue in 2023, 63.54 per cent in 2024, and 79.39 per cent in the first seven months of 2025.
These persistent shortfalls delay infrastructure projects, prompting contractor protests and budget extensions into 2026.
The funding constraints highlight structural pressures on Nigeria’s public finances, prioritising debt obligations over development spending across federal agencies.
