Thirteen Nigerian states have proposed a combined budget of ₦9.07 trillion for the 2025 fiscal year, with ₦3.87 trillion (42.7%) allocated for recurrent expenditure and ₦5.845 trillion (57.3%) earmarked for capital projects. Recurrent expenditure includes salaries and administrative costs, while capital spending focuses on long-term infrastructure and development.
Highlights by State:
• Lagos: ₦3.005tn; 41.3% for recurrent costs, 58.7% for capital projects.
• Bayelsa: ₦689.4bn; 38.2% recurrent, 61.8% capital.
• Oyo: ₦678.09bn; 49.41% recurrent, 51.59% capital.
• Katsina: ₦682.24bn; 23.15% recurrent, 76.85% capital.
Experts expressed concerns about the high proportion of recurrent expenditure, limiting resources for impactful development. Charles Sanni, CEO of Cowry Treasurers Limited, remarked:
“Low capital expenditure signals minimal growth and GDP contribution. States must optimise costs and increase internally generated revenue.”
Vincent Nwani, an economist, added:
“Budgets are too small for transformative growth. More funds should target productive ventures, not unproductive spending like vehicle purchases.”
Economic analysts warn that the 2025 budget assumptions may lead to underperformance without improved transparency and fiscal discipline.
