32 States Implement 33% of N1.8trn Capital Budget In Q1, Says Agora Policy

Thirty two state governments in Nigeria implemented just 33 per cent of their combined capital budgets in the first quarter of 2026, despite allocating N1.8 trillion for capital projects, according to a new report by Agora Policy.

The report said the states spent a combined N3.5 trillion in the period, with capital projects accounting for slightly more than half of the total expenditure at N1.8 trillion or 51.5 per cent.

The remaining N1.7 trillion, or 48.5 per cent, went to recurrent items such as salaries, overheads and administration.

The report showed that 32 out of the country’s 36 states achieved an overall budget implementation rate of 43 per cent during the period under review, reflecting continued disparities in fiscal performance among sub-national governments.

According to the report released by Agora Policy, N1.8 trillion, representing 51.5 per cent of the total expenditure, was allocated to capital projects, while N1.7 trillion or 48.5 per cent covered recurrent expenses such as salaries, overheads and administration.

The policy group noted that recurrent expenditure implementation remained significantly stronger than capital spending among the states reviewed.

Recurrent expenditure recorded an implementation rate of 63 per cent, compared to 33 per cent for capital expenditure.

The report further showed that Kano and Imo states posted the highest ratios of capital spending at 76 per cent each, indicating stronger emphasis on infrastructure and development projects during the quarter.

On recurrent spending, Plateau State recorded the highest ratio at 88 per cent, followed by Ondo State at 78 per cent.

Analysis of the overall budget implementation levels revealed that 25 of the 32 states implemented less than 50 per cent of their expenditure budgets in the first quarter.

Only seven states surpassed the 50 per cent implementation threshold within the period.

Oyo State emerged as the top-performing state with an implementation rate of 104.4 per cent, while Ekiti followed with 66.1 per cent.

At the lower end of the ranking, Enugu State recorded the weakest performance with an implementation rate of 12.1 per cent.

The report also showed that five states recorded recurrent expenditure implementation rates above 80 per cent, while eight states remained below the 50 per cent mark in recurrent budget execution.

Capital expenditure performance remained particularly weak across most states, as 29 out of the 32 states implemented less than half of their capital budgets in the first quarter.

Only Oyo, Bauchi and Lagos states exceeded 50 per cent implementation in capital spending during the period.

In terms of actual expenditure values, Lagos, Oyo and Akwa Ibom states recorded the highest total spending as well as the largest capital expenditure outlays in Q1 2026.

For recurrent expenditure, Lagos, Oyo and Ogun states posted the highest spending figures.

The report added that Oyo State recorded the highest budget performance on a pro-rated basis at 140 per cent, while Enugu again ranked lowest with 12 per cent.

The findings underscore the uneven pace of budget implementation across states despite increased fiscal pressures and rising demands for infrastructure development, social services and economic support programmes.

The stronger capital budget execution remains critical for improving infrastructure delivery, stimulating economic growth and addressing development gaps across the country.