The capital expenditure by 26 state governments plunged by N2.19tn within three months in the first quarter of 2026, raising concerns over slowing infrastructure development and worsening fiscal pressures as politics for next year’s elections intensifies.
An analysis of quarter-on-quarter financial reports published on the official websites of the states showed that total capital expenditure fell by N2.20tn, representing a 58.1 per cent decline, from N3.79tn recorded in the fourth quarter of 2025 to N1.59tn in the first quarter of 2026.
Similarly, a breakdown of state government expenditure between January and June 2025 showed that 31 states collectively spent N2.75tn, averaging N1.38tn on capital projects during the six-month period.
The sharp contraction comes amid growing political activities and early alignments ahead of the 2027 general elections, a period analysts say could increasingly shift government attention from long-term infrastructure investments to political calculations and recurrent spending.