Nigeria struggles with budget implementation despite subsidy removal

Economic experts have raised concerns regarding the Nigerian Federal Government's struggle to implement national budgets. Despite the removal of fuel subsidies in 2023, the 2024 budget has faced implementation difficulties, while the 2025 budget has reportedly reached only 30 percent implementation.

Expert Eze Onyekpere noted that a significant portion of revenue is consumed by recurrent expenditures, including debt servicing, which accounts for 53 percent of revenue, and public official salaries. This leaves the developmental capital budget—intended for infrastructure such as hospitals, schools, water facilities, electricity, and agriculture—at risk.

Onyekpere warned that failing to fund capital projects impacts the general population and hinders security, as capital budgets are also required to procure arms and equipment for the military and police.