Nigeria 2024 capital expenditure hits N11.1tn with 85% implementation, but economists question impact due to delayed releases and inflation

Nigeria spent N11.1tn on capital expenditure in 2024, achieving 85 per cent implementation, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has disclosed.

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The extended budget cycle was aimed at ensuring the completion of priority projects.

Speaking at the 2026 Macroeconomic Outlook event of the Nigerian Economic Summit Group in Lagos on Thursday, Edun said the capital spending outcomes reflected the government’s focus on project execution and fiscal discipline.

“In aggregate, capital expenditure in 2024 reached N11.1tn, so that was 85 per cent performance. The 2025 capital is below that, reflecting emphasis on completing priority projects of 2024,” he said.

However, some economists questioned whether the spending has had tangible effects on the economy.

Professor of Economics Akpan Ekpo noted delays in disbursement have limited the impact.

“For the 2025 budget, only 17 per cent of the capital expenditure has been released. We are not feeling the impact because of the delay in releases,” Ekpo said.

Marcel Okeke, former Chief Economist at Zenith Bank, described the effect as “money illusion,” citing inflation and naira depreciation.

“The cost of materials for infrastructure has risen sharply. That is why you don’t see much impact. PMS prices rose sharply after subsidy removal, and what we see now is largely what they claim,” he said.

Edun defended the spending outcomes, highlighting the government’s commitment to transparency and structural reform.

“All statutory obligations foreign debt service, domestic debt service, and salaries were met. Capital expenditure is linked to stabilising food prices, lowering cost of capital, expanding mortgage lending, scaling electricity delivery, and accelerating road construction,” he said.

The minister emphasised the need for capital expenditure to translate into shared prosperity and called for productive investment supported by private sector participation.

“Global capital development is retreating. We have to rely on our own holistic resource utilisation to meet development goals,” he added.

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Edun stressed that the success of capital spending would determine whether macroeconomic stability is converted into sustained growth, reiterating that Nigeria “cannot afford to pause, cannot afford to retreat, and cannot afford to sleep.”