In their proposed budgets for the 2025 fiscal year, 13 Nigerian states have earmarked approximately N3.87 trillion for recurrent expenditure, representing a significant portion of their total budgets. These budgets prioritize administrative costs, including salaries and overheads, while also allocating substantial amounts for capital projects aimed at enhancing infrastructure development across the states.
The total proposed budget for the 13 states stands at N9.07 trillion, with N3.87 trillion allocated for recurrent expenditure—covering the ongoing operational costs of the government and essential services. The remaining N5.85 trillion has been designated for capital expenditure, underscoring the states’ focus on long-term infrastructure projects.
Notable among these budgets is Lagos State, with a proposed total budget of N3.005 trillion. The state has allocated N1.24 trillion for recurrent expenditure and N1.76 trillion for capital expenditure, reflecting its focus on infrastructure development. In Bauchi State, Governor Bala Mohammed proposed a budget of N465.09 billion, with N182.74 billion allocated for recurrent costs, while N282.34 billion is dedicated to capital projects.
Bayelsa State’s Governor Douye Diri also presented a budget of N689.4 billion, with N263.38 billion allocated for recurrent expenditure and N404.76 billion for capital expenditure. In contrast, Osun State’s Governor Ademola Adeleke proposed a N390.03 billion budget, with a larger portion—N245.8 billion—set aside for recurrent costs.
Meanwhile, Anambra State’s budget of N606.9 billion includes a relatively small portion for recurrent expenditure (N139.5 billion), while a significant share—N467.5 billion—has been allocated for capital projects. However, the state is facing a projected budget deficit of N148.3 billion.
Other states, including Oyo, Gombe, Ekiti, Cross River, and Akwa Ibom, have also proposed budgets with a balanced allocation between recurrent and capital expenditures, while some states like Katsina and Plateau have directed a higher proportion toward capital expenditure, aiming for long-term economic growth and development.
Economic analysts have raised concerns over the growing proportion of recurrent expenditures, noting that such high allocations leave limited resources for capital projects, potentially hindering significant economic growth. Charles Sanni, CEO of Cowry Treasurers Limited, suggested that cost optimization and increased internally generated revenue could help improve the financial health of the states.
Vincent Nwani, an economist and investment specialist, further cautioned that the proposed budgets may not be adequate to drive substantial development, particularly in the face of corruption and inefficiencies. He emphasized the need for states to generate more income to meet their obligations, including servicing debts.
Economic stakeholders have also projected that the 2025 national budget of N47.9 trillion may underperform due to its ambitious assumptions, potentially impacting the overall growth prospects for the country.
