By: Fabian Apechihin

Procurement delays, insecurity, and rising costs have crippled states’ ability to meet their capital expenditure targets in the first half of 2025, despite unprecedented revenue inflows from subsidy removal and foreign exchange reforms.

Budget Implementation Reports from 31 states show that between January and June, only ₦2.75 trillion was disbursed on capital projects—barely 15.7% of the ₦17.51 trillion allocated for the year. Analysts warn the underperformance is delaying critical roads, schools, hospitals, and water systems, deepening hardship for citizens.

The weak half-year performance mirrors a recurring pattern. In 2024, states earmarked ₦11.34tn for capital projects but ended the year with a funding gap of nearly ₦4tn as debt servicing, wage bills, and revenue shortfalls weakened fiscal space.

Big Spenders, Bigger Gaps

Despite the poor overall showing, some states demonstrated strong capital focus. Imo led with ₦188.1bn spent on infrastructure against ₦50.29bn recurrent. Enugu followed with 81.9% of its ₦121.65bn total expenditure directed to capital projects, while Bayelsa (69%) and Kebbi (68%) also leaned heavily towards development spending.

Others showed more balance. Ogun spent ₦157.15bn recurrent and ₦155.64bn capital, while Kaduna split ₦108.45bn on capital and ₦100.31bn recurrent.

At the other extreme, states like Kogi (₦133.22bn recurrent vs ₦73.16bn capital), Ekiti (₦101.1bn vs ₦56.1bn), and Osun (₦89.37bn vs ₦57.13bn) tilted resources towards salaries and overheads, raising concerns about long-term growth.

Why States Are Struggling

Governors blamed insecurity, bureaucratic procurement bottlenecks, and inflation.

• Benue cited insecurity, including June’s attack in Guma LGA that left 200 dead, as contractors were unable to mobilise.
• Imo and Borno reported insurgency disruptions and weak capital inflows.
• Jigawa, Sokoto, Zamfara, and Yobe said procurement delays and high costs stalled projects.
• Ebonyi recorded just 11.3% utilisation, deferring major capital outlays to Q3.

Most governments expressed optimism that execution would pick up in the second half of the year.

Experts React

Economists, however, warn that the persistent pattern of high recurrent spending and weak capital delivery undermines growth. Prof. Segun Ajibola of Babcock University said excessive governance costs and poor accountability mean states are failing to convert revenues into grassroots development.

Recurrent Bills Still Rising

While capital projects lagged, states spent ₦2.36tn on recurrent expenditure in H1 2025—an 18.3% jump from comparable 2024 figures. Big spenders included Ogun (₦157.15bn), Kogi (₦133.22bn), Oyo (₦129.06bn), Kano (₦115.24bn) and Akwa Ibom (₦113.44bn). By contrast, Enugu (₦22.06bn), Katsina (₦26.39bn), Zamfara (₦37.57bn), Ebonyi (₦38.38bn), and Abia (₦39.73bn) posted the lowest recurrent costs.

Federal Pressure

Last month, President Bola Tinubu urged governors to redirect resources into rural electrification, agricultural mechanisation, poverty eradication, and infrastructure. “The economy is working, but we need to stimulate growth in the rural areas,” he said, calling for closer federal-state collaboration.

Despite this, the half-year reports show many states are still trapped in a cycle of delayed capital projects, rising recurrent bills, and underwhelming delivery of services—leaving citizens waiting for the promised dividends of increased revenue.

Would you like me to now condense this into a punchy, front-page newspaper style (shorter paragraphs, bold stats, hard-hitting headline), or keep it in this comprehensive policy-analysis format?

From Lateef Taiwo

The Nigerian Communications Commission, NCC and Ministry of Communication has begins the review of the national telecom policy to address integration of emerging technologies. .

The Executive Vice Chairman, NCC Dr Aminu Maida disclosed this during an interactive session with the media in Abuja.

He discussed the evolution of Nigeria’s telecom policy, highlighting key developments such as tariff adjustments, corporate governance guidelines, and the USSD debt settlement.

He emphasized the shift from traditional enforcement to information disclosure to foster competition, noting a reduction in call rates from 50 Naira to 18 Naira per minute.

The EVC said that the 2000 national telecom policy led to the NCA 2003, which transformed the industry from 500,000 lines to over 100 million lines.

He explained that the ministry, not the commission, is responsible for policy, and the regulator works with the ministry to advise and recommend on policy matters.

He noted that the context has changed from voice calls and text messages to internet connectivity and emerging technologies like AI, IoT, and remote services.

Maida said that the new policy focus is on ensuring robust internet infrastructure for high-speed connectivity and reliable applications, including data centers and internet exchange

He added that the policy will also address the integration of emerging technologies and the need for simplified compliance and information disclosure

He said that traditional regulation relied on rules and enforcement, with punitive measures for non-compliance.

He stressed that there is an urgent need to shift from regulating voice and text messages to the era of the Internet necessitates a new approach.

He announced the upcoming release of a public map for network performance based on consumer data.

He noted that the map will provide independent data, allowing consumers to make informed decisions about their network providers.

According to him , a quarterly performance reports will be released, offering extensive analysis of network performance based on real data.

He said the the goal is to empower consumers with accurate and transparent information to drive better service quality and competition.

By: Fabian Apechihin

Secretary to the Government of the Federation (SGF), George Akume, has called on the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to ensure fairness and due diligence in drafting a new revenue allocation formula for the country.

Akume made the appeal on Monday while receiving a delegation from RMAFC led by its Chairman, Mohammed Shehu, in Abuja.

The ongoing review seeks to produce a formula acceptable to the federal, state, and local governments. Currently, the federal government receives 52.68 per cent of revenue, states 26.72 per cent, and local governments 20.60 per cent, while 13 per cent derivation is allocated to oil-producing states.

Expressing confidence in the commission’s new leadership, Akume urged it to remain focused on its mandate and ensure the formula reflects fairness across the tiers of government. He also stressed the need for an “irreducible minimum” allocation for key ministries, departments, and agencies (MDAs), particularly the Ministry of Defence, given its critical role in safeguarding national security.

In his remarks, Shehu confirmed that work on the draft formula is ongoing and will soon be submitted to the SGF’s office for input before being forwarded to the National Assembly for approval.

Do you want me to make this more policy-focused (emphasizing implications for governance and states) or news-brief style (shorter, just the essential facts)?