The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has disclosed that Nigeria spent N11.1tn on capital expenditure in 2024, achieving an 85 per cent implementation rate after the Federal Government extended the budget cycle to allow the completion of priority projects.
Edun made the disclosure on Thursday while speaking at the 2026 Macroeconomic Outlook event organised by the Nigerian Economic Summit Group (NESG) in Lagos.
According to the minister, the decision to extend the 2024 budget was aimed at preventing project abandonment and ensuring value for money despite prevailing fiscal pressures.
“In terms of the capital budget, the budget, at the end of the day, is a law of the National Assembly. They extended the 2024 budget for the full year to ensure that projects were completed,” Edun said.
“In aggregate, capital expenditure in 2024 reached N11.1tn, so that was 85 per cent performance,” he added.
However, the announcement has drawn mixed reactions from economists, some of whom questioned whether the scale of spending has translated into meaningful economic impact.
Renowned economist, Prof Akpan Ekpo, said delays in the release of capital funds have blunted the growth-enhancing effects of the expenditure.
“It’s capital expenditure that enhances growth. Now he’s talking about 2024, which has almost a one-year or nearly two-year lag. For the 2025 budget, only 17 per cent of the capital expenditure has been released,” Ekpo said.
“We are not feeling the impact because of the delay in releases. Capital expenditure supports growth and development, but the delay is a problem,” he added.
Ekpo expressed concern that while preparations for the 2026 budget were underway, capital releases for 2025 remained incomplete, urging the government to address bottlenecks in fund disbursement.
Similarly, former Chief Economist at Zenith Bank, Mr Marcel Okeke, argued that inflation and naira depreciation have significantly eroded the real value of government spending.
“This is money illusion,” Okeke said. “The cost of materials for infrastructure has risen sharply. A bag of cement that cost far less in 2023 is now around N12,000. That is why you don’t see much impact — inflation and naira depreciation have eaten into the value of spending.”
He added that rising energy costs following fuel subsidy removal have further increased project costs, limiting the visible outcomes of capital expenditure.
Defending the government’s approach, Edun explained that the 2025 capital budget was lower because the administration prioritised completing ongoing 2024 projects.
“The 2025 capital is below that. That reflects the government’s emphasis on completing the priority projects of 2024,” he said.
He stressed that despite fiscal constraints, the government met all statutory obligations, including foreign and domestic debt servicing and salary payments.
Edun described the outcomes as evidence of improved transparency, fiscal discipline, and structural reform, noting that capital spending forms a core part of the administration’s economic strategy.
“All these outcomes create the macro and fiscal conditions required to stabilise food prices, lower the cost of capital, expand mortgage lending, scale electricity delivery, and accelerate road construction across the federation,” he said.
The minister emphasised that capital expenditure must ultimately translate into shared prosperity and sustained growth.
“Nigeria cannot afford to pause, cannot afford to retreat, and cannot afford to sleep. Success will determine whether stability is converted into sustained growth,” Edun said.
He also highlighted the need for increased private sector participation, noting the retreat of global and multilateral financing and the growing importance of domestic resource mobilisation.
Edun concluded by calling on Nigerians at home and in the diaspora to invest in the economy, reaffirming the government’s commitment to transforming fiscal stability into inclusive, job-rich growth.
