SPECIAL REPORT: How Nigeria’s Budget Keeps Rising in Trillions, But Implementation Stays Below 25%
Lawal Dahiru Mamman,
The 2025 federal budget was proudly called the “Budget of Restoration”. Valued at about ₦55 trillion, it promised major investments in security, roads, schools, hospitals, and agriculture among others.
On paper, the figures presented looked promising for the country. Roads were to be built, schools equipped, hospitals upgraded, and farms supported. Now past first quarter of 2026, reality tells a story of delays, poor revenue disbursements and overlapping budgets that confuse everyone.
Capital projects that were supposed to drive development stalled almost immediately. Out of the ₦23–24 trillion set aside for infrastructure, only about 30 percent was released in 2025, with the rest pushed into 2026.
Budgeting process overlaps, with more than one running simultaneously. The 2024 budget continued into 2025, and 2025 capital budget has now been extended by the President to June 2026.
Meanwhile, the 2026 budget of ₦68.3 trillion was passed, including ₦7.7 trillion worth of unfinished 2025 projects. Such development makes it difficult to track spending and weakens accountability.
The consequences of these rollovers are felt directly by citizens. Every delay means bridges remain half‑built, hospitals stay unfinished, and security upgrades drag on.
To show severity of the budget conundrum, members of the Federal Executive Council (FEC) heading ministries too have lamented during budget defence how this situation has hindered optimum performance.
Some ministries and funds released:
Ministry of Health and Social Welfare
Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, told lawmakers that his ministry received only ₦36 million out of the ₦218 billion appropriated in the 2025 budget.
By calculation, this amounts to less than one percent of the allocation. He lamented, and rightly so, that such poor capital releases crippled the ministry’s ability to execute projects, leaving hospitals and health programmed stalled.
Ministry of Works
Minister of Works, David Umahi, also raised concerns about how only about nine percent of the ₦2.2 trillion capital allocation for his ministry was released in 2025.
This shortfall significantly constrained road construction and power infrastructure projects, undermining one of the government’s priorities.
Ministry of Housing and Urban Development
Ahmed Musa Dangiwa who headed the ministry explained that budgetary constraints had slowed down his ministry’s ambitions, particularly in delivering climate‑responsive housing and urban resilience initiatives.
Although no specific figures were mentioned during the defense, he alludes to the fact that with little capital funding released, the ministry was forced to explore alternative financing mechanisms beyond traditional budget allocations.
Ministry of Power
Adebayo Adelabu who recently resigned his position to purse elective position in his home state reported that while his ministry achieved full performance on salaries and overheads in 2025, it recorded zero capital releases.
Ministry of Defence
The defence sector also suffered poor releases. Records from the Open Treasury Portal showed that of the ₦20.56 billion budgeted by the Nigerian Army for security equipment in 2025, only ₦1.46 billion, representing just over seven percent as amount disbursed.
Out of the ₦4.52 trillion total expenditure proposed by the army, only ₦1.17 trillion was released, representing about 26 percent. The Air Force fared little better, receiving ₦238.32 billion out of ₦1.25 trillion, or 19 percent. These figures underscore the severe underfunding of Nigeria’s security apparatus at a time of escalating threats.
Ministry of Justice
Attorney General Lateef Fagbemi reported that despite some progress in reforms, the ministry’s capital implementation stood at just 12 percent. Out of ₦6.74 billion allocated, only ₦869.6 million was issued, and even that was not cash‑backed.
Such persistent non‑release of funds slows down criminal justice reforms and counterterrorism initiatives.
Ministry of Interior
The Ministry of Interior ecorded zero capital releases for both 2024 and 2025, a situation capable of stalling infrastructure development across agencies under his purview.
Ministry of Water Resources
The Ministry of Water Resources reported receiving only about ₦1 billion out of its ₦80 billion capital allocation in 2025. This represented barely 1.5 percent of the approved funds.
This shortfall means critical water supply and irrigation projects across the country are abandoned hence, disrupting efforts to improve access to clean water and support agriculture.
Ministry of Women Affairs
Ministry of Women Affairs received just ₦394.8 million out of an approved ₦89.8 billion for capital projects. That amounts to less than half a percent of its allocation.
With such meagre releases, programmes aimed at empowering women, protecting vulnerable groups, and advancing gender equality were left largely unfunded.
Ministry of Transportation
Transportation was another sector hit hard. Out of ₦256.73 billion allocated for capital projects in 2025, only ₦2.57 billion was released representing about one percent of total amount.
With increase in transport cost as a result of fuel subsidy removal, little funds leaves major transport infrastructure projects, including rail and road expansions, stuck on paper, with little progress visible to citizens.
Ministry of Marine and Blue Economy
The newly created Ministry of Marine and Blue Economy also struggled. It received only ₦202 million out of its ₦3.53 billion capital allocation, representing about 1.7 percent, limiting its ability to pursue maritime development, coastal infrastructure, and blue economy initiatives that were supposed to diversify Nigeria’s economy.
Lastline
As this keeps happening, Nigerians lose trust in government promises, while debt servicing continues to consume more of the budget. Investors also doubt Nigeria’s seriousness when fiscal discipline is missing.
The deferral of 2025 capital spending may have been pragmatic given revenue shortfalls, but pairing it with yet another extension and a fresh multi‑trillion naira budget in 2026 feels like pushing problems further down the road.
To fix this cycle, Nigeria needs a budget calendar that will be followed religiously to the latter. Releases should be tied to visible progress, with funds only flowing when milestones are met.
Revenue collection must be strengthened, especially beyond oil, to close the massive gaps exposed in 2025 so that budget presentation will not be just another routine in governance.