Nigeria’s 36 states and the Federal Capital Territory have increased their combined budgets by 47.5 per cent, from N27.22tn in 2025 to N40.14tn in 2026.
Despite the significant increase in overall spending, the proportion allocated to capital projects has declined, raising concerns about the potential impact on infrastructure development and long-term economic growth.
An analysis of the 2026 budgets of the 36 states and the FCT shows that capital expenditure accounts for 64.34 per cent of the total budget, down from 73.24 per cent recorded in 2025. In nominal terms, states and the FCT have allocated N25.83tn to capital expenditure out of their N40.14tn combined budget for 2026.
This compares with N19.94tn earmarked for capital projects from the N27.22tn aggregate budget in 2025. The figures indicate that although capital spending has increased in naira terms, its share of total state spending has fallen by nearly nine percentage points.
The shift suggests that more state resources are being channelled towards recurrent expenditure and other spending obligations in 2026, even as states seek to expand infrastructure and stimulate economic activity.
