13 Nigerian states have allocated a total of N3.87 trillion for recurrent expenditure in their proposed budgets, part of a combined N9.07 trillion budget for the year.
Recurrent expenditure covers ongoing government operations like salaries and services, while capital expenditure focuses on long-term infrastructure projects.
Recurrent costs total 43 percent of the proposed budgets across these states, with N5.845 trillion earmarked for development projects.
States like Lagos and Akwa Ibom prioritize infrastructure, with significant funds allocated for capital projects.
Experts have raised concerns about the high proportion of spending on recurrent costs, which limits funds for capital investments, potentially stunting economic growth.
Recommendations include improving cost control, reducing personnel-related expenses, and increasing internal revenue through partnerships and external funding.
Economists argue that the overall budgets are too small for significant development, especially in sectors like infrastructure.
“What’s worse is that a large portion of the capital is being used for non-productive purposes, such as buying cars, instead of funding long-term projects that can drive economic growth.
“There are issues of corruption and a lack of transparency that need to be addressed.
“The states need to start generating more income to meet their obligations, as they have borrowed before and need to repay.”
