About 29 state governments currently face a deficit of N4.25tn in funding capital projects, as this has resulted in the delay of various infrastructure projects in the affected states, The PUNCH reports. These states collectively disbursed a total sum of N3.76tn out of a budget target of N8.25tn to fund capital projects, requiring additional funding of N4.25tn.
The amount disbursed in the first nine months of 2024 is N280bn lower than the capital expenditure of N4.04tn spent by the sub-nationals in the 2023 fiscal year. This is despite an increase of 40 per cent in their monthly allocation from the Federal Government, highlighting a considerable gap between the planned capital investment and actual expenditure by the sub-national entities.