States’ capital spending plunges 58% as 2027 politics intensifies
Capital expenditure by 26 state governments across Nigeria plunged by about ₦2.19tn within just three months in the first quarter of 2026, as political activities ahead of the 2027 elections intensify. An analysis of their quarterly financial reports shows that total capital spending fell by 58.1%, from ₦3.79tn in Q4 2025 to ₦1.59tn in Q1 2026. The figures, drawn from budget implementation and performance reports published on state government websites, indicate a broad slowdown in infrastructure and development projects. By contrast, a breakdown of expenditure between January and June 2025 had shown 31 states collectively spending about ₦2.75tn on capital projects over six months, averaging ₦1.38tn. Almost all of the 26 states recorded sharp declines. Enugu posted one of the most dramatic drops, with capital outlays crashing by 91.4% from ₦365.69bn in Q4 2025 to just ₦31.37bn in Q1 2026. […]
