State Capital Spending Crashes by N2.19tn in Q1 2026 as Election Jitters Mount
By Aboki Forex —
Capital expenditure by 26 state governments plunged by N2.19tn in the first quarter of 2026. This sharp drop has raised concerns over slowing infrastructure development and worsening fiscal pressures. Political activities for next year’s elections are intensifying.
An analysis of quarter-on-quarter financial reports from state government websites shows total capital expenditure fell by N2.20tn. That is a 58.1 per cent decline. It dropped from N3.79tn in the fourth quarter of 2025 to N1.59tn in the first quarter of 2026.
Earlier data from January to June 2025 shows 31 states collectively spent N2.75tn on capital projects. That averaged N1.38tn over the six-month period.
The contraction comes as political alignments for the 2027 general elections heat up. Analysts say this period often shifts government focus away from long-term infrastructure investments. Instead, attention moves to political calculations and recurrent spending.