The issue of late implementation of national budgets seems to be becoming a recurring decimal in our polity. For three consecutive fiscal cycles: 2023, 2024 and 2025, implementation gaps have widened, with some ministries operating concurrent budgets due to delayed releases.
It was made known recently by the Minister of Health and Social Welfare, Mohammed Ali Pate that out of N218 billion appropriated for capital projects in 2025, only N36 million was released. In percentage terms that is 0.0165%. in practical effect, this is essentially zero. The case of the Minister of Transport, Saidu Ahmed Alkal, was just marginally better. He revealed that revealed that just 1 percent of his ministry’s N256.73 billion 2025 allocation was released, roughly N2.57 billion. You don’t have to be a rocket scientist to figure out that major transportation projects would have been severely hampered by this. The Ministry of Interior would have to be the absolute worst of the lot. The ministry recorded zero percent capital releases in both 2024 and 2025. The implication: two full years without capital funding for critical infrastructure tied to immigration services, correctional facilities and internal security systems. Other ministries have also lamented the low allocations and poor disbursement patterns.
Research into the issue shows that delays in releasing funds for budget implementation is rooted in a combination of institutional, political, and economic factors. The following is an analysis of some of the most influential factors:
Late Passage of Budgets
Budgets are often passed well into the fiscal year due to prolonged debates between the executive and legislature. This shortens the effective implementation window, causing ministries and agencies to wait months before funds are released. The political bargaining and disputes that often happens over allocations exacerbate the delays.
Bureaucratic Bottlenecks
Ministries, Departments, and Agencies (MDAs) face lengthy approval processes before funds are disbursed. There are requirements for multiple sign‑offs from the Ministry of Finance and the Budget Office, which slow down capital project execution. In some cases, directives prevent MDAs from awarding contracts without prior ministerial approval, further stalling implementation.
Revenue Shortfalls & Cash Flow Constraints
Nigeria’s heavy reliance on oil revenues means budget execution is vulnerable to global oil price fluctuations. When revenues fall short, the government prioritizes recurrent expenditure (salaries, debt servicing) over capital projects, delaying releases for infrastructure and development.
Weak Institutional Capacity
Poor planning and weak project monitoring systems lead to inefficiencies. Many MDAs lack the capacity to prepare bankable projects quickly, so even when funds are available, disbursement is slow.
Political Considerations
Governments sometimes delay releases to control spending patterns for political leverage, especially around election cycles. Patronage networks influence which projects receive funding first, creating uneven implementation.
Transparency & Accountability Concerns
The government often adopts a cautious approach to disbursement to avoid misuse of funds. However, this caution can morph into excessive delays, undermining confidence among investors and citizens.
There are dire consequences arising from these factors. They include rising project costs due to inflation and currency depreciation, poor infrastructure delivery, as capital projects are stalled or abandoned, reduced investor confidence, since fiscal uncertainty complicates planning, and policy ineffectiveness, as budgetary goals (growth, poverty reduction) are not achieved on time.
The present late implementation saga is heightened by the claims of the Tinubu administration to have met its revenue target in 2025 ahead of schedule and was not borrowing. If that is true, it raises the question of then “Why the budget implementation delays?”
This question carries very high stakes for the ordinary Nigerian. It determines whether hospitals are equipped, rail lines completed, correctional facilities modernized, and social programmes funded. It also carries heavy weight at more philosophical level. The impasse raises questions about government credibility, and questions about government credibility are a threat to our what still seems like a fragile system of democracy.
