Governments' expenditures fall under two major categories; capital expenditure and recurrent expenditure.
In simple terms, capital expenditure refers to the government’s spendings on infrastructure such as roads, transportation system, health facilities, educational facilities, among others.
On the other hand, recurrent expenditure is the government’s spendings on the payment of salaries, pensions and other overheads.
Between the two forms of spendings, it is the capital expenditure that plays a key role in how effective the economy functions, according to BudgIT, a civic organisation driven to make the Nigerian budget and public data more understandable and accessible across every literacy span.
“In more simpler terms, the more the government spends on infrastructure, the better the performance output of its economy, thereby impacting economic growth,” the organisation further stated.
In its latest report tagged Patterns in States’ Expenditure, BudgIT highlighted the states that have the best budget performance on capital expenditure, using the 2019 budgets.
Put differently, the report ranked the states on how they performed in terms of the amount they budgeted on infrastructure and the actual amount they eventually spent, not based on the highest amount spent.
Below is the list of the top five performers among the 36 states of the federation:
1. Kaduna state
Budgeted capital expenditure: N152.3bn
Actual capital expenditure: N148.3bn
2. Yobe state
Budgeted capital expenditure: N39.5bn
Actual capital expenditure: N30.1bn
3. Rivers state
Budgeted capital expenditure: N301.5bn
Actual capital expenditure: N224.1bn
4. Lagos state
Budgeted capital expenditure: 345.3bn
Actual capital expenditure: 241.1bn
5. Jigawa state
Budgeted capital expenditure: 90.1bn
Actual capital expenditure: 61.9bn
In other news, Lagos has retained its position as an investor’s favourite in Nigeria as it tops the list of states that attracted the most investments in 2020, outshining other states and the Federal Capital Territory (FCT).
Lagos, Nigeria's economic nerve centre, attracted $8.31 billion in investments. This represents 85.7 per cent of the total capital inflow into the country in the year 2020.
The top 10 states that attracted the highest capital investments in 2020 are Lagos ($8.31 billion), Abuja ($1.27 billion), Abia ($56.07 million), Niger ($16.36 million), Ogun ($13.39 million), Anambra ($10.02 million), Kaduna ($4.03 million), Sokoto ($2.50 million), Kano ($2.38 million) and Akwa Ibom ($1.05 million).