State governors have outlined ambitious plans to increase capital expenditure to address the infrastructure gap in their regions, with N17.51 trillion allocated for capital projects in their 2025 budgets.
This follows a 2024 allocation of N11.34 trillion for similar initiatives, but a shortfall of N3.98 trillion last year hindered their ability to fully fund these projects.
In total, the sub-national governments plan to invest N28.85 trillion in infrastructure development over the next two years, aiming to drive economic growth. This is supported by improved revenue allocations from the Federal Government, which saw a significant increase in statutory allocations from the Federation Account Allocation Committee (FAAC) to N15.12 trillion in 2024, up by N4.994 trillion or 49.24% from the N10.143 trillion allocated in 2023.
An analysis of FAAC’s monthly reports shows that state governments received the largest share of this total allocation, amounting to N5.22 trillion, or 34.5% of the total distribution. Despite this financial boost, many states are still struggling to meet their infrastructure delivery targets.
The shortfall in funds has delayed essential projects in critical sectors like roads, healthcare, and education, limiting progress and the potential benefits to citizens.
