No fewer than 15 Nigerian states have budgeted more than ₦10 trillion for infrastructure development in 2026, signalling an aggressive push to upgrade roads, schools, hospitals, and public utilities, an analysis of state budgets shows.
The states Lagos, Akwa Ibom, Enugu, Anambra, Kano, Imo, Yobe, Ebonyi, Oyo, Kaduna, Ekiti, Osun, Ondo, Edo, and Plateau have collectively earmarked about ₦10.7tn for capital expenditure in the 2026 fiscal year. Budget proposals were presented and approved between November 2025 and January 2026.
The renewed focus on capital spending is aimed at improving public services, strengthening human capital, and stimulating local economies. However, analysts note that the real impact will depend on timely releases, project execution, and transparency.
Nigeria continues to grapple with severe infrastructure shortfalls, estimated at about $100bn annually. Projections by credit rating firm Augusto & Co suggest the gap could widen to $878bn by 2040 if current trends persist.
Ebonyi State leads in capital allocation, committing ₦749.49bn—nearly 85 per cent of its total budget—to infrastructure. Imo follows with ₦1.2tn, representing over 83 per cent of its spending plan. Enugu and Anambra have also prioritised development, allocating 80 per cent and nearly 78 per cent of their budgets respectively to capital projects. Akwa Ibom has set aside over ₦1.1tn for similar investments.
In the North, Yobe plans to devote more than half of its budget to infrastructure, while Kaduna has allocated about 71 per cent of its spending, with education taking a significant share. Kano has earmarked over ₦930bn for roads and public facilities.
Lagos State, despite having the country’s largest budget at ₦4.24tn, will allocate ₦1.23tn, about 29 per cent to capital projects, reflecting a more balanced mix of recurrent and development spending.
With limited internally generated revenue, most states plan to fund projects through loans, bonds, grants, capital receipts, and public–private partnerships. Economists warn that long-term sustainability will depend on building productive local economies, expanding tax bases, and improving fiscal discipline.
