On average, 47% of Nigeria's annual capital expenditure is spent on economic service projects

Key takeaways:

  • Economic services still receive the largest share of capital expenditure (47% on average), which has declined over time, raising concerns about long-term infrastructure development.
  • Spending on administration has risen, now accounting for a quarter of total capital expenditure (25%), highlighting a stronger focus on governance and institutional processes.
  • Social community services (such as education and healthcare) have seen growth in allocation, reaching around 12-19% in recent years, signalling a shift toward social development.
  • Transfers, which are funds allocated to specific entities or programmes, have fluctuated but occasionally spiked.

Capital expenditure is the backbone of a nation’s long-term development, shaping infrastructure, economic growth, and social well-being. In Nigeria, nearly half (47%) of federal capital expenditure is allocated to economic services, reinforcing the government's focus on transportation, agriculture, and power. However, the distribution of funds has shifted significantly over the years, revealing intriguing patterns in national priorities.
A closer look at the data from 1999 to 2023 shows a gradual decline in capital spending on economic services, even though they remain the largest category. While economic services accounted for over 65% in 1999, this share has decreased to around 44% in recent years. Meanwhile, administration spending has increased, suggesting a growing focus on governance, bureaucracy, and institutional frameworks.

Source:

Central Bank of Nigeria (CBN)

Period:

1999 - 2023
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