Nigeria’s capital expenditure for the first half (H1) of 2024 declined by 25.3 percent to N1.99 trillion, down from N2.68tn in the corresponding period last year, according to the Central Bank of Nigeria (CBN)’s statistical bulletin.
This decline occurred despite the government operating four budgets concurrently.
The CBN’s statistical bulletin shows a shift in spending priorities towards recurrent costs and debt servicing, raising concerns over their long-term impact on economic development.
A month-by-month comparison reveals inconsistent spending patterns in 2024. Capital expenditure began with zero allocation in January 2024, compared to N379.1 billion in January 2023, suggesting a sluggish start to the fiscal year.
Spending peaked in February 2024 at N893.9 billion, representing a significant increase from the previous month but still only 36.3 percent higher than February 2023’s N656.3 billion.
However, CAPEX dropped sharply in March 2024 to N258.6 billion, reflecting a 65 percent decline from February 2024 and a 66.1 percent decrease compared to March 2023’s N763.6 billion.
In April 2024, capital spending amounted to just N42.1 billion, marking a 36 percent drop from the N64.5 billion spent in April 2023.
The months of May and June 2024 showed some recovery, with CAPEX rising to N478.9 billion and N325.4 billion, respectively.
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However, these figures remained below the corresponding months of 2023, when N300 billion and N513.3 billion were allocated, highlighting a consistent downward trend.
The uneven monthly spending reflects growing fiscal constraints as the government grapples with rising debt obligations and recurrent expenditures.
Capital expenditure represented about 53.35 percent of the N3.73 trillion retained revenue in H1 2024, a drop from the 96.06 percent share in H1 2023.
This decline points to a reduced focus on infrastructure investment, which may constrain economic growth and job creation.
Meanwhile, total government expenditure rose by 29.5 percent from N9.39 trillion in H1 2023 to N12.17 trillion in H1 2024, driven largely by recurrent spending.
Recurrent expenditure surged by 51.4 percent, climbing to N10.17 trillion in H1 2024 from N6.72 trillion in the first half of 2023.
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