By Juliet Ezeh
Several federal ministries and agencies have warned that extremely low capital releases in recent budgets are slowing the execution of critical government projects and weakening service delivery across key sectors of the Nigerian economy.
Officials from multiple Ministries, Departments and Agencies raised concerns during their budget defence sessions before the National Assembly of Nigeria, revealing that only a small fraction of approved funds for 2025 was actually released for project implementation.
At the Federal Ministry of Health and Social Welfare, officials disclosed that only ₦36 million was released from the ₦218 billion approved for capital projects in the 2025 budget. The minister, Muhammad Ali Pate, said the funding shortfall significantly slowed key healthcare interventions and weakened the country’s health infrastructure.
Analysts say the development comes at a time when Nigeria is already grappling with growing public health pressures, including increased demand for services and the migration of medical professionals to other countries.
Similar concerns were raised by the Federal Ministry of Transportation, which reported that only about one per cent of its ₦256.73 billion allocation for 2025 had been released.
Officials said the limited funding stalled major projects in the rail, road and maritime sectors, delaying infrastructure improvements that are crucial for economic growth and national connectivity.
The funding constraints extend beyond infrastructure and health. The Federal Ministry of Interior disclosed that it recorded zero capital releases in both 2024 and 2025, raising concerns about the ability of agencies under its supervision to improve facilities and operational capacity.
Security and oversight institutions have also expressed frustration over limited funding. Members of the House Committee on National Security and Intelligence described budget allocations to intelligence agencies as insufficient, warning that poor funding could undermine efforts to combat terrorism, insurgency and organised crime.
Oversight institutions such as the Office of the Auditor-General for the Federation have also been affected. The office disclosed that only about four per cent of its capital allocation for 2025 was released, limiting its ability to audit government institutions and expand oversight activities.
Lawmakers noted that the office is responsible for auditing more than 1,000 public entities across the country but lacks the resources to deploy modern technology and improve monitoring capacity.
Other agencies including the Nigeria Correctional Service and the Public Complaints Commission have also appealed for improved funding to enhance operational efficiency.
Policy analysts say the widening gap between approved budgets and actual fund releases has become a major challenge for public administration in Nigeria.
The situation reflects broader fiscal pressures facing the government, including rising debt servicing obligations, limited revenue growth and increased demand for social spending following economic reforms introduced by the administration of Bola Ahmed Tinubu.
Experts warn that unless capital releases improve, many government programmes may continue to face delays, potentially affecting infrastructure development, public service delivery and national economic performance.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.