About 29 state governments currently face a deficit of N4.25tn in funding capital projects, as this has resulted in the delay of various infrastructure projects in the affected states, The PUNCH reports.
These states collectively disbursed a total sum of N3.76tn out of a budget target of N8.25tn to fund capital projects, requiring additional funding of N4.25tn.
The amount disbursed in the first nine months of 2024 is N280bn lower than the capital expenditure of N4.04tn spent by the sub-nationals in the 2023 fiscal year.
This is despite an increase of 40 per cent in their monthly allocation from the Federal Government, highlighting a considerable gap between the planned capital investment and actual expenditure by the sub-national entities.
This latest development also comes against the backdrop that these state governors spent N1.994tn on recurrent expenditures, including refreshments, sitting allowances, travelling, and utilities between January and September 2024.
It was also gathered that the states obtained a N533.29bn loan, while it spent N658.93bn to service its debts owed to local, foreign, and multilateral creditors.
