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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Lagos’s domestic debt is 7.5% (₦72.6 billion) higher than the South South’s
  • The South-West recorded the highest domestic debt stock of approximately ₦1.43 trillion, largely powered by Lagos State’s ₦1.04 trillion debt.
  • The South-South ranks second with ₦968 billion, led by Rivers State’s ₦364.4 billion, reflecting major infrastructure and fiscal commitments.
  • The North-Central (₦520 billion) and North-East (₦450 billion) show moderate borrowing compared to their southern counterparts.
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Enugu - South-East’s top domestic debtor - owes more than Imo, Abia, and Anambra combined
  • Enugu State holds the highest domestic debt in the South-East at ₦180.5 billion.
  • Imo ranks second with ₦97.9 billion, about 54% lower than Enugu’s figure.
  • At ₦15.8 billion, Ebonyi remains the least indebted in the region, maintaining a conservative borrowing stance.
  • Combined, the five South-East states (Enugu, Imo, Abia, Anambra, and Ebonyi) owe roughly ₦371 billion domestically as of Q2 2025.
Rivers State's domestic debt is 3.5% (₦12.4b) more than the combined debt of Delta and Cross River
  • Bayelsa holds the lowest debt with ₦65.9 billion.
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  • Delta (₦204.7 billion) and Cross River (₦147.3 billion) remain among the region’s more indebted states
  • Regional debt approaches ₦1 trillion: The six South-South states collectively hold an estimated ₦968 billion in domestic debt as of Q2 2025.
Jigawa recorded the lowest domestic debt in North-West Nigeria at ₦852 million in Q2 2025
  • The seven North-Western states collectively owed about ₦223.4 billion in domestic debt as of Q2 2025, according to DMO data.
  • Kano State ranked highest with ₦56.9 billion, accounting for roughly 25% of the zone’s total debt.
  • Jigawa remains the least indebted in the region and in the entire country, with only ₦852 million.
  • Moderate debt spread: While Kano, Zamfara, and Sokoto carried the largest debt loads, the remaining states maintained relatively conservative borrowing patterns.
Kogi and Nasarawa post lowest domestic debt in North Central Nigeria at ₦18.8 billion and ₦23.9 billion, respectively
  • The six North Central states collectively hold ₦449.4 billion in domestic debt as of Q2 2025, according to DMO data.
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  • The debt gap between Kogi (lowest) and Niger (highest) stands at over ₦123 billion, highlighting stark differences in fiscal management and borrowing capacity across the zone.
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