Key points
- The Federal Government has allocated N2.47 trillion in the 2026 budget for the rehabilitation and reconstruction of 124 strategic roads across Nigeria.
- Major projects include the Abuja-Lokoja Road, Enugu-Port Harcourt Road, Kano-Katsina Road and Ota-Idiroko Road.
- The investments are aimed at improving agricultural supply chains, cross-border trade and industrial logistics.
- Experts say improved road infrastructure could lower transportation costs and stimulate economic growth.
- Economists, however, warn that budget implementation remains a major challenge.
Main Story
The Federal Government has earmarked N2.47 trillion in the 2026 Appropriation Bill for the rehabilitation, reconstruction and dualisation of 124 critical road projects across the country as part of efforts to strengthen transportation infrastructure and stimulate economic growth.
An analysis of the 2026 budget shows that the projects are spread across Nigeria’s six geopolitical zones, targeting strategic highways that support agriculture, manufacturing, commerce and regional trade.
Among the flagship projects is the Lokoja-Abuja Road, a vital transport corridor linking northern and southern Nigeria, with N12.6 billion allocated for its rehabilitation and construction across two sections.
The government also set aside N19.6 billion for Sections III and IV of the Enugu-Port Harcourt Road, a major highway connecting the South-East and South-South regions and facilitating industrial, commercial and logistics activities.
In the North, N23.6 billion has been budgeted for the dualisation of the Kano-Katsina Road, a strategic highway linking two major commercial centres and providing access to neighbouring Niger Republic for cross-border trade.
Similarly, N13.3 billion has been allocated for the dualisation of the 105-kilometre Borno-Kano Road, expected to improve the movement of agricultural produce from Borno, Yobe, Jigawa and Bauchi states to Kano.
To promote regional trade, the government also budgeted N4.2 billion for the rehabilitation of the Gbagi-Apa-Owode Road in Badagry, Lagos State, which connects communities to the Seme Border with the Republic of Benin.
Other key allocations include N25.2 billion for the construction of the four sections of the Ota-Idiroko Road, N17.8 billion for the dualisation of the Benin-Akure-Ilesha Road, N12.6 billion for the rehabilitation of the Onitsha-Owerri Road, and N7.7 billion for the reconstruction of the Aba-Owerri-Ikot Ekpene Road.
The budget also provides N1.4 billion for access roads linking the Second Niger Bridge to Onitsha and Asaba, N1.4 billion for the rehabilitation of the Ikorodu-Shagamu Road, and another N1.4 billion for repairs to the Iganmu Bridge in Lagos.
In addition, N7 billion has been allocated for the rehabilitation of the Abeokuta-Ibooro Road, N7 billion for the Kano-Dayi Road, N4.2 billion for the construction of the Ibi Bridge in Taraba State, and N3.5 billion for the upgrade of the Ekiti Cargo Airport.
The government also plans to construct rural feeder roads in farming communities, including Ikirun, with N1.75 billion earmarked to improve access to markets and reduce post-harvest losses.
The Issues
Nigeria continues to face a significant infrastructure deficit estimated at 30 to 35 per cent of GDP, well below the World Bank’s recommended benchmark of 70 per cent for emerging economies.
Budget implementation remains a major concern, with experts questioning whether the allocated funds will be fully released.
Poor road infrastructure continues to increase transportation costs, reduce productivity and weaken Nigeria’s competitiveness.
Closing the country’s infrastructure financing gap will require sustained public investment and greater private sector participation.
What’s Being Said
Ike Ibeabuchi, Emerging Markets Analyst
“Infrastructure can be an enabler for most of the roads in the 2026 budget.”
Chukwunonso Iheoma, Consultant Economist
“It is not just about how much is budgeted; it is how much is released.”
“There is no guarantee that half of the budget will be implemented.”
Nigerian Economic Summit Group (NESG)
“Nigeria’s weak physical and technological infrastructure continues to erode its competitiveness relative to peer economies.”
What’s Next
The proposed road projects are expected to move into various stages of procurement and execution following the approval and implementation of the 2026 budget.
Industry stakeholders will closely monitor fund releases and project execution, as effective implementation will determine whether the investments translate into improved connectivity, lower logistics costs and stronger economic growth.
Bottom Line
The Federal Government’s N2.47 trillion allocation for 124 strategic road projects underscores its commitment to improving Nigeria’s transport infrastructure. While the planned investments could boost trade, agriculture and industrial development, their impact will depend largely on timely funding and effective execution.
