State governors across the country have unveiled ambitious strategies to ramp up capital expenditure, aiming to tackle the persistent infrastructure gaps in their respective regions. In their 2025 budget proposals, the governors have allocated a combined total of N17.51 trillion to fund critical capital projects.
This marks a significant increase compared to the N11.34 trillion set aside for similar projects in 2024. However, last year’s budget faced challenges, as states fell short of their funding targets, recording a deficit of N3.98 trillion.
Over the two-year period, the sub-national governments plan to invest a total of N28.85 trillion in infrastructure development, aiming to stimulate economic growth and improve public services. This push is partly fueled by the recent rise in revenue allocations from the Federal Government.
Notably, statutory disbursements from the Federation Account Allocation Committee (FAAC) to the federal, state, and local governments saw a substantial increase of N4.994 trillion, reaching N15.12 trillion in 2024 alone. This boost in funding has provided states with greater financial flexibility to pursue their development agendas.
