Governors across Nigeria’s South-West region have placed a strong emphasis on capital spending in their 2025 budgets, emphasizing it as a crucial strategy to stimulate Economic Growth and move past the lingering economic headwinds from 2024. With an emphasis on key industries like healthcare, education, agriculture, and infrastructure, the governors hope to build a more resilient and inclusive economy. Drawing facts from their prioritized areas in the budget, the leadership in the region as a whole recognizes the necessity of tackling the economic challenges that characterized the previous year, including increased inflation, unemployment, and diminished consumer purchasing power.
By channeling resources to long-term development initiatives, they plan to boost growth, draw in investments, and raise living standards. Lagos, in its 2025 Appropriation Bill tagged “Budget of Sustainability” of ₦3.366 trillion, signed by Governor Sanwo-Olu, allocates ₦2.07 trillion for capital projects and ₦1.3 trillion for recurrent expenditure. The governor notably mentioned human capital development and Infrastructure Sustainability as two of the five main pillars upon which the budget was structured. In Ogun State, Prince Dapo Abiodun, the state governor, unveiled a ₦1.054 trillion “Budget of Hope and Prosperity.”
Ondo and Oyo focus on recovery and economic stabilization.
Ogun allocated 60 percent (₦600.98 billion) of the total budget fund to capital expenditures, which included the extension of the Red Line Metro Rail and infrastructure projects like housing, roads, and healthcare. Its recurrent expenditure makes up 40% of the budget, or ₦453.56 billion. As revealed, Education will gulp up ₦117.83 billion, or 17% of the budget. According to further sectoral data, health accounted for ₦134.538 billion (13 percent), followed by housing and community development ₦66.382 billion (6 percent), Agriculture and industry ₦65.387 billion (6 percent), and infrastructure ₦284.456 billion (27%).
Infrastructure, education, and Food Security are given top priority in Ondo State’s ₦698.65 billion “Budget of Recovery.” In the budget, ₦433 billion (62.06%) is allocated to capital expenditure, while ₦265 billion (37.94%) is allocated to recurrent expenditure. Likewise, Oyo State Governor Seyi Makinde signed a “Budget of Economic Stabilization” at ₦684 billion. As earlier revealed when presented at ₦674 billion, capital expenditure would consume ₦349.29 billion, or 50.59% of the budget, while recurrent expenditures would receive ₦325.57 billion, or 49.41%.
Ekiti and Osun states prioritize growth and sustainability.
With a budget share of 22.46%, infrastructure received the largest portion, followed by education with 21.44%. Additionally, the health sector received 9 percent of the budget in the 2025 predictions, while agriculture received 3%. It was noted that the budget’s upward review from ₦678 billion to ₦684 billion is a conscious attempt to accommodate new objectives and important projects that would boost infrastructure, spur economic growth, and improve our residents’ quality of life in general.
Meanwhile, Ekiti State signed a ₦375.8 billion for its “Budget of Sustainable Development” for 2025, with a focus on infrastructure, economic development, food security, and agriculture. Governor Biodun Oyebanji emphasized these areas as key to driving growth. Standing out from the others, of Osun State’s ₦390 billion “Budget of Sustainable Growth and Transformation,” the state government allocates ₦144 billion for capital projects and ₦245 billion for recurring expenditure. According to Governor Ademola Adeleke, ₦102 billion of the recurring spending is allocated to human costs, which include wages, benefits, pensions, and gratuities. The remaining ₦142.9 billion is reserved.
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In contrast to prior years when capital spending was sometimes eclipsed by recurring expenditure, South-West states are now allocating more funds to long-term development initiatives. The budget focus for the South-West region in 2025 not only shows a dramatic shift from previous expenditure patterns but also comes with a renewed emphasis on tackling economic issues and enhancing social services, infrastructure, and agriculture. The successful implementation of these budgets will rely on efficient execution, transparency, and cross-sector cooperation as these states strive to carry out their ambitious ambitions.