Nigeria's 2025 Budget Faces Capital Allocation Crisis

The 2025 Nigerian budget, totaling ₦57.1 trillion, includes ₦43.5 trillion for capital allocation and ₦13 trillion for recurrent expenditure. However, a significant crisis has emerged as capital allocations lack cash backing, affecting key ministries such as Health, Interior, Transport, and Women Affairs.

Shamseldeen Ogunjimi, appearing before the Senate Committee on Finance on February 12, attributed the crisis to indiscriminate contract awards without confirmed funding. The Ministry of Health received only ₦36 million of its ₦218 billion capital allocation, representing 0.0165 percent.

The Ministry of Interior reported zero capital budget releases for two consecutive fiscal years, while the Ministry of Transport received only ₦2.57 billion of its ₦256.73 billion allocation. The Ministry of Women Affairs received ₦394.8 million of its ₦89.8 billion allocation.

The Ministry of Marine and Blue Economy received ₦202 million of its ₦3.53 billion allocation. Analysts indicate that the non-release of capital allocations has historically hindered project implementation, urging the government to align priorities with the new administration under President Bola Ahmed Tinubu.