A document released by the Ministry of Planning has revealed that the federal government spent only Rs 76 billion on development projects between July and October, representing just 7.6 percent of the total Public Sector Development Programme (PSDP) for the current fiscal year.
African Union Rejects Trump’s Claims of Genocide in Northern Nigeria
According to the report, the government failed to meet its fund release target for the first half of the year. Under the July–December release strategy, 35 percent of funds were to be authorized, but this target was not achieved.
Notably, six ministries — including the Cabinet Division, Commerce, Establishment, Parliamentary Affairs, Petroleum, and Religious Affairs — received no development funds during the four-month period.
The Cabinet Division had been allocated Rs 70 billion, Parliamentary Affairs Rs 2.5 billion, Petroleum Division Rs 710 million, Establishment Division Rs 490 million, Religious Affairs Rs 650 million, and Commerce Division Rs 50 million — yet none of these allocations were utilized.
During the same period, Rs 54 billion were released for 34 ministries and divisions, while another Rs 22 billion went to corporations such as the National Highway Authority (NHA) and NTDC/PEPCO. Despite authorizing 33 percent of the planned funds instead of 35 percent, actual development spending stood at just 24 percent, reflecting a significant shortfall.
Out of the Rs 1 trillion development budget, only 7.6 percent was used in the first four months — highlighting serious delays in both fund authorization and expenditure.
Sector-wise spending breakdown
Between July and October, the Defence Division utilized Rs 1.08 billion, Special Areas Rs 16.48 billion, Housing and Works Rs 5.2 billion, Law and Justice Rs 260 million, Planning Ministry Rs 3.9 billion, Railways Division Rs 4.32 billion, and Water Resources Rs 13.55 billion.
The NHA received the highest share, with Rs 20 billion released for its ongoing infrastructure projects.
Missed targets and financial constraints
Under the fund release plan, the government had aimed to authorize Rs 350 billion by December, but only Rs 330 billion were approved. Even during the first quarter, the 15 percent utilization target remained unmet.
Officials attributed the low spending to flood-related damages, slow project execution, and reduced revenue collection, which constrained the government’s ability to allocate funds for development initiatives.
For the July–December period, Rs 219 billion have been earmarked for 36 ministries and divisions, while Rs 111 billion were allocated to the NHA and Power Division (NTDC/PEPCO) under the 35 percent release plan.
