LAGOS — The Nigerian Ministry of Finance has clarified a “paradox” in Nigeria’s infrastructure funding, revealing that capital expenditure (CAPEX) remains high despite a squeeze on direct cash to ministries.
According to a statement from Ogho Okiti, Special Adviser to the Minister of Finance and Coordinating Minister of the Economy, capital performance reached 84% in 2024 and 76% in 2025. This contradicts complaints from Ministries, Departments, and Agencies (MDAs) regarding “zero” cash releases
| Year | Capital Expenditure | Performance |
| 2024 | N11.59 trillion ($8.33 billion) | 84% |
| 2025 | N11.7 trillion ($8.367 billion) | 76% |
Source: Nigeria Ministry of Finance
He noted that the discrepancy is due to how Nigeria now funds its infrastructure. While direct MDA cash releases were hit by oil revenue shortfalls, project-tied loans from partners like the World Bank remained active. These funds are paid directly to contractors for major projects like rail and power, bypassing the standard agency cash system.
“The misunderstanding arises from focusing solely on MDA cash releases rather than total capital execution.” Okiti said in the media brief.
The government also revealed a strategic shift in execution. Due to late budget cycles, the 2024 capital budget was largely executed throughout 2025. Consequently, much of the 2025 plan has been rolled over into the 2026 Budget Proposals to ensure projects are not abandoned.
This shift highlights a preference for “bankable” infrastructure—projects with clear economic returns that international lenders fund directly. By using this model, the government ensures that essential national development continues even when domestic revenue is volatile.
While smaller community projects relying on direct cash have faced delays, the Ministry pledged that as reforms recover “trapped” oil revenues, direct releases to agencies will increase in the 2026 fiscal year.
