Ministries, Departments, and Agencies (MDAs) of the Federal Government spent 81.91 per cent of the ₦5.81 trillion released for capital projects in the 2024 fiscal year, according to the latest Budget Implementation Report by the Budget Office of the Federation.
The report, obtained on Thursday, indicated an improvement in budget performance and project execution across key infrastructure sectors despite revenue shortfalls and fiscal constraints.
It stated that the high utilisation rate reflected the government’s determination to accelerate infrastructure delivery under tight fiscal conditions.
Total revenue inflow for the year stood at ₦20.98 trillion, representing a 68.1 per cent increase from ₦12.48 trillion in 2023. However, the figure was ₦4.89 trillion, or 18.9 per cent, below the ₦25.87 trillion revenue target set in the 2024 Appropriation Act signed by President Bola Tinubu in January.
The report noted, “Federal Government revenue totalled ₦20.78 trillion, 66.59 per cent higher than 2023 but 19.68 per cent below the target. Oil revenue underperformed at ₦15.07 trillion, while non-oil revenue outperformed at ₦16.09 trillion. Expenditure was ₦27.47 trillion, with ₦8.53 trillion spent on non-debt recurrent costs and ₦11.03 trillion on debt servicing. ₦5.81 trillion was released for capital projects, 81.91 per cent of which was utilised by MDAs. The fiscal deficit stood at ₦9.18 trillion, financed through domestic borrowing, while the debt-to-GDP ratio rose to 61.22 per cent.”
By law, MDAs that fail to fully utilise funds released for capital projects within a fiscal year must return the unspent balance to the Federal Government’s treasury.
The Budget Office attributed the overall revenue growth to strong non-oil performance, particularly in corporate taxes, Value Added Tax, customs duties, and electronic money transfer levies.
Non-oil revenue rose to ₦16.09 trillion in 2024—48.9 per cent above the ₦10.81 trillion projection. In contrast, gross oil revenue fell short at ₦15.07 trillion, 24.7 per cent below the ₦19.99 trillion target, but still 80.8 per cent higher than the ₦8.35 trillion recorded in 2023.
Oil and gas earnings accounted for only 17 per cent of total revenue in the fourth quarter of 2024, reflecting efforts to diversify income sources. The solid minerals sector contributed ₦4.6 billion, a 303.6 per cent increase from the previous quarter.
In Q4 alone, total revenue reached ₦6.42 trillion, slightly 0.6 per cent below the ₦6.46 trillion quarterly target, but significantly higher than the ₦3.87 trillion recorded in the same period of 2023.
However, revenue from federation levies and government-owned enterprises (GOEs) fell short, with retained earnings of ₦612.96 billion—about 14.3 per cent below projections. The report also indicated that the government received no remittances from NLNG dividends, oil price royalties, or windfall taxes during the review period.
