Analysis of the Effect of Government Capital Expenditure on Infrastructure Development in Anambra State

Government capital expenditure on infrastructure is theorised as a driver of economic productivity and welfare, and analysing its effectiveness in Anambra State provides evidence for assessing public investment quality in South East Nigeria. This study analysed government capital expenditure and its relationship to infrastructure development indicators in Anambra State from 2015 to 2022. Secondary data from the Anambra State Ministry of Finance, Ministry of Works, and NBS were used. Infrastructure indicators examined included road coverage (kilometres per square kilometre), electricity access rate, water access rate, and educational facility density. Regression analysis and descriptive trend analysis were applied. Results showed that capital expenditure averaged N42 billion annually over the study period, representing 28 percent of total state expenditure. Despite this, road coverage improved by only 8.3 percent, electricity access by 4.1 percent, and water access by 6.7 percent over the seven-year period. Contract abandonment rates for government-funded infrastructure projects were estimated at 34 percent. Per-kilometre road construction costs exceeded national benchmarks by an average of 22 percent, suggesting procurement inefficiency. The study concludes that Anambra State's capital expenditure generates sub-optimal infrastructure returns due to implementation inefficiencies. Recommendations include strengthening public procurement standards, anti-corruption enforcement in infrastructure contracting, independent project monitoring, and community-based infrastructure oversight committees.

Keywords: capital expenditure, infrastructure development, Anambra State, public investment, procurement efficiency