Understand your domain

Why Many State Budgets Fail to Deliver and How to Fix Them

Most Nigerian states now publish their annual appropriation laws online. This is an important step for transparency. Documents for 2025 from Bayelsa, Lagos, Enugu, Rivers and others list dozens of roads, hospitals and water projects. Yet quarterly performance reports tell a different story. By mid-2025, Enugu had spent barely 0.2 percent of its approved allocation on some key sectors, and Ebonyi reported roughly 1.5 percent overall execution at mid-year . The gap between ambitious figures and actual work on the ground remains wide. Budgets are promises. To become action, they need timely revenue, efficient approval systems and clear reporting. Without these links, the law is just a PDF. Citizens see line items that never turn into projects, weakening trust in government.

Revenue Shortfalls and Bottlenecks

The single biggest obstacle is cash. Many state plans assume strong inflows from the federation account or optimistic internal revenue. When oil prices soften or tax collection lags, projected income evaporates. Governments then prioritise salaries and statutory obligations, leaving little for roads or clinics. Enugu and Ebonyi’s minimal execution rates show how ambitious plans collapse without matching receipts .

Where revenue does arrive, administrative steps often slow release. Procurement processes rely heavily on manual files. Approvals sit on desks for weeks. Contracts intended for the dry season are signed as rains begin. Even Lagos, which generated more than ₦580 billion in the first quarter of 2025, shows many capital lines at zero for months . These bottlenecks signal that systems, not just funds, determine whether a project moves.

Weak Tracking and Limited Public Insight

Quarterly reports exist but often lack detail on why projects stall. Citizens cannot tell if a planned road has been tendered, who won the contract or when work will start. Rivers and Bayelsa publish long capital project lists yet subsequent updates provide little explanation of delays . Lack of clarity allows rumours to grow and hides whether setbacks are due to procurement disputes, revenue gaps or simple inertia.

Some states have improved. Niger and Adamawa post performance dashboards, but the data rarely traces spending to site visits or completion certificates. Without visible progress photos, contractor names or payment dates, numbers remain abstract. People judge governments by roads and water taps, not by tables in a report.

Turning Promises into Delivery

Real change begins with budgets that match reality. States benefit when revenue targets are set cautiously, reflecting what is likely to flow in rather than what leaders hope to collect. A smaller plan that is fully funded creates fewer broken promises than an ambitious document built on uncertain receipts.

Transparency must reach beyond ministry walls. Publishing every contract award, payment schedule and project milestone gives citizens a clear picture of progress. Photos from work sites, contractor details and completion certificates attached to specific budget lines show that government intends to be held accountable. Lagos has made strides by releasing broad revenue and spending figures, but pairing those figures with named projects would let the public track promises to actual outcomes.

Modernising financial and procurement systems is equally important. Payments routed through electronic platforms and logged step by step leave less room for unexplained delays or selective disbursement. Bayelsa’s 2025 call circular set clear templates and submission timelines, signalling intent to tighten procedures, yet the real transformation comes when those timelines are reinforced by automated tracking that follows every naira from allocation to project completion.

These measures shift the annual budget from a hopeful list into a contract that citizens can see fulfilled. When states align expectations with real income, open the flow of information, and hardwire discipline into their systems, roads, classrooms and clinics move from paper to reality, building trust and drawing in new investment.

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