FG CAPITAL EXPENDITURE CRASHES 67% BELOW Q2 2026 TARGET AS MDAs RECEIVE NO NEW BUDGET RELEASES

The Federal Government recorded a 66.87 per cent shortfall in capital expenditure against its second-quarter 2026 target, raising concerns over the pace of infrastructure development and implementation of the national budget.

Figures from the Budget Office of the Federation showed that the government targeted ₦8.07 trillion in capital spending for the period but recorded actual expenditure of only ₦2.67 trillion.

The report further disclosed that no releases had been made for the 2026 capital budget of Ministries, Departments and Agencies (MDAs), forcing them to continue operating with funds from the 2025 budget.

The development raises questions about the government’s ability to execute its planned capital projects and deliver critical infrastructure within the 2026 fiscal year.

An analysis of the Federal Government’s second-quarter expenditure showed that total spending stood at ₦11.03 trillion against a target of ₦17.08 trillion.

Debt-related expenditure reached ₦3.24 trillion compared with the projected ₦3.95 trillion, while non-debt recurrent expenditure rose to ₦3.93 trillion, slightly above its ₦3.86 trillion target.

Statutory transfers stood at ₦1.18 trillion against the projected ₦1.20 trillion.

Capital expenditure recorded the widest gap between budgetary expectations and actual performance, with only ₦2.67 trillion spent against the ₦8.07 trillion target.

Unlike recurrent expenditure, which covers routine government obligations such as salaries and administrative costs, capital spending finances long-term investments, including roads, hospitals, schools, electricity and other infrastructure.

The figures highlight a significant gap between the government’s planned expenditure and actual implementation, particularly in the capital component of the budget.

With MDAs reportedly yet to receive releases from the 2026 capital budget, attention is now focused on when the Federal Government will commence funding new projects and accelerate budget implementation.

**Source: Budget Office of the Federation.**