The Federal Ministry of Finance has clarified that capital projects across the country are still being implemented despite concerns over low capital releases to ministries, departments and agencies (MDAs).
In a statement issued in Abuja on Sunday, the ministry stated that while budget execution rates for some MDAs may appear low, capital project implementation has not been abandoned.
The clarification is coming against the backdrop of public concerns over low releases to MDAs amidst the multiplicity of budgets being implemented.
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ly Trust reports that the 2024 and 2025 budgets are still being implemented while the 2026 budget implementation is still being awaited.
However, the ministry while providing updates on the budget performance explained that available data shows that government capital spending remains substantial despite fiscal pressures.
"It said total capital expenditure in 2024 reached N11.59 trillion, representing about 84 percent performance of the capital budget. Provisional figures for 2025, as of November, show capital spending of approximately N11.7 trillion, translating to around 76 per cent performance.
"These figures demonstrate that capital projects are ongoing and execution continues. The financing mix differs, but implementation has not been abandoned," the ministry stated.
It noted that focusing solely on MDA cash releases provides an incomplete picture of federal capital expenditure.
The clarification was contained in a document titled "Deepening Public Understanding of Nigeria's Fiscal Position: Context and Background," signed by the Special Adviser to the Minister of Finance and Coordinating Minister of the Economy on Media and Communications, Dr. Ogho Okiti.
The ministry explained that federal capital spending is financed through two main channels: direct funding through MDA budget releases and project-tied financing from multilateral and development partners.
While the first category depends heavily on government revenue and may experience slower disbursements during periods of fiscal strain, the second involves funds released directly by development partners for specific infrastructure or social programmes. Such disbursements may not always appear as cash releases in federal government accounts.
The ministry therefore cautioned that analysing only MDA cash releases can lead to misleading conclusions about the status of capital projects.
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The clarification follows recent appearances by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, before the Senate and the House of Representatives during deliberations on the proposed 2026 budget. Lawmakers had raised questions about fiscal performance and the pace of capital expenditure execution.
The ministry attributed the Federal Government's fiscal pressures largely to significant shortfalls in oil and gas revenue.
According to the brief, projected Federation oil and gas revenue for 2025 stood at N37.4 trillion, but actual inflows were about N7 trillion, representing a performance rate of roughly 19 percent.
It noted that if projections had been realised, the Federal Government alone would have received about N15 trillion more in revenue.
It added that the 2024 capital budget was largely implemented in 2025, while part of the 2025 capital spending plan has been shifted to 2026 as part of ongoing fiscal adjustments.
"The administration has chosen long-term sustainability over short-term illusion," the ministry stated.
