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
HTML code to embed chart
Want a bespoke report?
Reach out
Click to copy HTML embed code
Tags
Related Insights
Nigeria’s international visitor spending fell 51% between 2019 and 2025, while domestic spending rose 10.6%
  • International visitor spending fell 51.3%, from ₦947.1 billion in 2019 to ₦461 billion in 2025.
  • For every ₦100 international visitors spent in 2019, they spent about ₦49 in 2025, adjusted for inflation.
  • International visitor spending declined for three consecutive years, falling 18.6% in 2025.
  • Domestic visitor spending rose 10.6% between 2019 and 2025 to ₦6.39 trillion.
  • Domestic visitors accounted for roughly ₦93 of every ₦100 spent on travel and tourism within Nigeria in 2025.
South Africa and Egypt accounted for 34% of the tourism economy across 46 African countries in 2025
  • South Africa and Egypt contributed $76.9 billion, roughly a third of the 46-country total.
  • South Africa led with $42.5 billion, followed by Egypt at $34.4 billion.
  • The top four countries accounted for slightly more than half of the $225.6 billion total.
  • Nigeria ranked ninth among the countries covered, with $7.6 billion.
  • Nigeria had the largest contribution among the West African countries included.
11 African currencies featured among the 25 requiring the most local currency units per US$1 in 2025
  • 11 African currencies featured among the 25 listed.
  • Somalia had the highest exchange rate among the African currencies highlighted, at 24,300 shillings per US$1.
  • Nigeria’s naira averaged ₦1,518 per US$1 in 2025.
  • 7 of the 11 African countries were in Eastern Africa, based on the UN M49 subregional classification.
  • Iran was the global outlier, averaging 711,418 rials per US$1, nearly eight times Lebanon’s 89,500.
South Africa led Africa with $6.25bn of Chinese FDI stock in 2024, over 14% of the continent's total
  • South Africa held the largest Chinese FDI stock in Africa at $6.25 billion in 2024.
  • South Africa, DR Congo and Nigeria held 30% of Africa’s Chinese FDI stock.
  • The top 10 countries accounted for 64% of the continent’s total Chinese FDI stock.
  • Niger led the remaining top 10 countries with $2.45 billion, followed by Mozambique at $2.28 billion.
China's cumulative investment in Africa has stalled since peaking at $46.1bn in 2018
  • China's FDI stock in Africa rose 94-fold, from $491 million in 2003 to $46.1 billion in 2018.
  • By 2024, the stock had recovered to $43.8 billion, still 5% below its 2018 peak.
  • Africa accounted for just 1.4% of China's $3.14 trillion global FDI stock in 2024.
  • Nigeria's Chinese FDI stock fell from a 2017 peak of $2.86 billion to $2.72 billion in 2024.
  • African countries recorded a net $2.31 billion decline in Chinese FDI stock between 2018 and 2024.
  • Niger recorded the largest increase, from $758 million in 2018 to $2.45 billion in 2024.
  • Zambia recorded the largest decline, from $3.52 billion in 2018 to $1.70 billion in 2024.
Six Nigerian states raised more revenue through MDAs than taxes in 2025
  • Six states generated about ₦656 billion through MDAs in 2025, nearly half of all MDA revenue.
  • The number of states where MDAs accounted for over half of IGR fell from seven in 2024 to six in 2025.
  • Enugu’s MDA share rose from 82.9% in 2024 to 87.3% in 2025, widening its lead.
  • Kwara, Katsina and Osun recorded MDA shares of 61.6%, 60.1% and 58.5%, respectively.
POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form
A product of Techpoint Africa. All rights reserved