Feb 18 β€’ 00:06 UTC πŸ‡³πŸ‡¬ Nigeria Punch

Cash crunch: Ministers lament as N10tn capital funding stalls

Ministers in Nigeria are facing severe challenges due to a significant funding shortfall for capital projects, with only less than N1tn released in the first seven months of 2025.

In Nigeria, key ministers overseeing important infrastructure and service-delivery agencies are struggling with a critical funding crisis. Reports show that government ministries, departments, and agencies (MDAs) received less than N1 trillion for capital projects during the initial seven months of 2025. This funding shortfall becomes even more concerning as the fiscal year progresses without the Budget Office of the Federation providing comprehensive data on full-year implementations, raising alarms regarding government accountability and transparency in fiscal practices.

Public finance experts and analysts have not been shy in critiquing the Budget Office for its inefficiency in releasing timely budget performance data. The continued delays in presenting up-to-date information have led to increasing concerns surrounding the administration of President Bola Tinubu. This scrutiny calls into question the government's commitment to transparency in its financial dealings and raises red flags about potential impacts on ongoing and future infrastructure projects that are pivotal to national development.

Furthermore, an analysis of the Medium-Term Expenditure Framework and Fiscal Strategy Paper (2026–2028) reveals that though the government had set aside N18.53 trillion for capital expenditures, the substantial gap between what was appropriated and what has been disbursed signifies not only poor financial management but may also indicate deeper issues within the administration and its ability to execute developmental projects efficiently. As the ministers confront this cash crunch, the implications for economic growth and service delivery in Nigeria appear increasingly dire.

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