The Federal Ministry of Finance has issued a statement clarifying that capital projects across the nation are still being advanced, despite public apprehension regarding the slow release of funds to Ministries, Departments, and Agencies (MDAs).
In its statement from Abuja on Sunday, the ministry indicated that while budget execution rates might appear low for certain MDAs, the implementation of capital projects has not been halted.
This clarification comes in response to public worries about the limited fund releases to MDAs, especially given the implementation of multiple budgets concurrently.
The ministry provided an update on the budget's performance, explaining that available data shows government capital expenditure remains significant, even with existing fiscal constraints.
According to the ministry, total capital expenditure in 2024 reached N11.59 trillion, achieving approximately 84 percent of the allocated capital budget. Provisional figures for 2025, up to November, indicate capital spending of around N11.7 trillion, representing about a 76 percent performance rate.
"These figures demonstrate that capital projects are ongoing and execution continues. The financing mix differs, but implementation has not been abandoned," the ministry affirmed.
The ministry also pointed out that evaluating only MDA cash releases provides an incomplete view of the Federal Government's capital expenditure.
The detailed explanation was part of a document titled “Deepening Public Understanding of Nigeria’s Fiscal Position: Context and Background,” which was signed by Dr. Ogho Okiti, the Special Adviser to the Minister of Finance and Coordinating Minister of the Economy on Media and Communications.
The ministry elaborated that federal capital expenditure is funded through two primary avenues: direct government funding via MDA budget releases and project-specific financing secured from multilateral and development partners.
While the former is contingent upon government revenue and may experience slower disbursals during periods of fiscal strain, the latter involves funds disbursed directly by international partners for designated infrastructure or social initiatives. These disbursements are not always recorded as cash releases within federal government accounts.
Consequently, the ministry cautioned that a review based solely on MDA cash releases could lead to inaccurate conclusions about the progress of capital projects.
This clarification follows recent appearances by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, before the Senate and the House of Representatives. During budget deliberations, lawmakers had raised questions concerning fiscal performance and the rate of capital expenditure execution.
The ministry attributed the Federal Government's fiscal challenges primarily to substantial shortfalls in oil and gas revenues.
The document highlighted that the projected Federation oil and gas revenue for 2025 was N37.4 trillion, but actual receipts were approximately N7 trillion, translating to a performance rate of around 19 percent.
It was noted that if the projections had been met, the Federal Government would have received an additional N15 trillion in revenue.
Furthermore, the ministry stated that the majority of the 2024 capital budget was executed in 2025, and a portion of the 2025 capital spending plan has been deferred to 2026 as part of ongoing fiscal adjustments.
"The administration has chosen long-term sustainability over short-term illusion," the ministry concluded.
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