Concerns are growing over Nigeria’s fiscal governance after reports that several ministries received little or no capital fund releases in 2025.
This development comes despite full budget appropriations approved by the National Assembly and signed into law.
Analysts say the issue goes beyond routine administrative delays. Instead, they argue it raises constitutional questions about compliance with the Appropriation Act and the rule of law.
Under Section 80(1)–(4) of the Constitution of the Federal Republic of Nigeria, public funds can only be withdrawn from the Consolidated Revenue Fund as prescribed by the legislature. Once an appropriation bill is passed and assented to, it becomes binding on the executive.
Legal experts stress that budget approval is not symbolic. Rather, it represents legislative authorization for implementation. Therefore, withholding or drastically under-releasing capital funds without lawful justification could weaken the principle of separation of powers. In Nigeria’s system, the legislature appropriates funds, while the executive implements them.
Beyond the constitutional concerns, economists warn of serious economic risks. Capital expenditure supports infrastructure, productivity, and long-term growth.
When ministries fail to receive approved funds, projects stall and contractors disengage. As a result, jobs decline and investor confidence weakens.
Moreover, weak capital releases can distort fiscal projections and reduce policy credibility. Experts explain that fiscal credibility depends not only on planning but also on execution.
Passing ambitious budgets without corresponding releases may send negative signals to investors and development partners.
Observers add that economic reform requires fiscal discipline and transparency. In addition, strict adherence to constitutional provisions strengthens governance and public trust.
For this reason, they maintain that full and timely implementation of approved budgets remains critical for sustainable growth and institutional stability.
