Home News FG’s Capital Expenditure Falls by 25% in H1 says CBN.

FG’s Capital Expenditure Falls by 25% in H1 says CBN.

by hannah
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As reported, the Nigeria’s capital expenditure for the first half of 2024 declined by 25.3% to N1.99 trillion, compared to N2.68 trillion in the same period last year.

Despite the government running four concurrent budgets, this drop highlights a shift in spending priorities toward recurrent costs and debt servicing, raising concerns about its long-term impact on economic development.

This data was gotten from the Central Bank of Nigeria, it reveals inconsistent monthly spending patterns.

January 2024 started with no capital expenditure (CAPEX), unlike N379.1 billion in January 2023.

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CAPEX peaked in February at N893.9 billion, but this was followed by a sharp drop in March to N258.6 billion.

Although spending recovered slightly in May and June, it still lagged behind 2023 levels.

During the 30th Nigerian Economic Summit, Minister of Budget and Economic Planning, Abubakar Bagudu, highlighted the government’s efforts to restore economic stability through a N2.17 trillion supplementary budget, the 2024 annual budget, and an amended 2024 budget with the Renewed Hope Infrastructure Fund.

Bagudu emphasised these budgets’ focus on national priorities, including infrastructure, agriculture, and human capital development.

Data, therefore, reveals that the government has only spent 19.46% of its capital expenditure budget in the first half of 2024, raising concerns about the capacity to finance critical infrastructure projects.

BudgIT, a civic-tech organization, criticised the government’s decision to run four concurrent national budgets, while opposition parties also questioned the need for this approach.

However, presidential spokesman Bayo Onanuga defended the extension of the budget cycle, stating it was necessary to avoid abandoning capital projects

 

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