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The Federal Government has earmarked N2.47 trillion in the 2026 budget for the rehabilitation and reconstruction of 124 roads considered critical to Nigeria’s economic activities.

An analysis of the 2026 budget shows the road projects are spread across both northern and southern Nigeria, targeting key transport corridors that support agriculture, trade and the movement of goods. Analysts say improving these routes could reduce logistics costs, enhance market access and stimulate economic growth.

Among the priority projects is the 105-kilometre road linking Borno and Kano states, for which the government has allocated N13.3 billion for dualisation. The project is expected to improve the transportation of agricultural produce from Borno, Yobe, Jigawa and Bauchi states to Kano, the commercial hub of the North-West.

Next is the Lokoja-Abuja Road, which serves as a major gateway between the North and the South. The road is divided into two sections, both of which will cost the sum of N12.6 billion for construction and rehabilitation.

Another important road that the Federal Government is embarking on this year is the Enugu-Port Harcourt Road, targeted at linking the South-East to the South-South, connecting major industrial, commercial and logistics hubs. The road, divided into sections III and IV, is expected to cost N19.6 billion.

The government is also planning to rehabilitate the Gbagi-Apa-Owode Road in Badagry, which is aimed at connecting communities in Badagry to the Owode/Seme border with the Republic of Benin. The 30.6-kilometre road, which is expected to boost cross-border trade and movement and lower logistics costs for businesses, will cost N4.2 billion.

The government has also earmarked N1.4 billion for the construction of access roads linking the Second Niger Bridge to both Onitsha in Anambra State and Asaba in Delta State.

The Kano–Katsina Road is one of the most important highways in northern Nigeria, connecting two major commercial centres and serving as a gateway to the Niger Republic. The Federal Government plans to spend N23.6 billion for the dualisation of the critical road.

‘You know, the road links Kano’s markets with Katsina and neighbouring Niger Republic, supporting domestic and cross-border trade. Farmers of crops like sorghum, millet, groundnuts, onions, rice and tomatoes can easily find a ready market in Kano. Infrastructure can be an enabler for most of the roads in the 2026 budget’, said an emerging markets analyst, Ike Ibeabuchi.

The Federal Government is also funding the Aba-Owerri-Ikot Ekpene Road, a strategic economic corridor linking Akwa Ibom, Abia and Imo states. It connects major commercial, industrial and agricultural centres in the South-South and South-East, making it one of the region’s most important highways. The government will spend N7.7 billion on the road, which will create a ready market for Aba shoe makers.

The government will likewise spend N1.4 billion to rehabilitate Ikorodu-Shagamu Road, which serves as an alternative route to the ever-busy Lagos-Ibadan Expressway to boost trade and industries. The government also plans to spend N1.4 billion to repair Iganmu Bridge in Lagos. Economists say the bridge will connect the Lagos port corridor with the rest of the city.

Moreover, there is a plan to construct rural farmers’ feeder roads in Ikirun, Kwara State, at the cost of N1.75 billion. The road, analysts say, will connect farming communities with markets and processing centres while reducing post-harvest losses.

Similarly, there is N3.5 billion set aside for the upgrade of Ekiti Cargo Airport, N7 billion for the construction and rehab of Abeokuta-Ibooro Road, as well as N4.2 billion for Ibi Bridge construction in Taraba State to connect Ibi with communities across the Benue River.

About N7 billion has been set aside for the construction of Kano-Dayi Road to serve farming communities and link them to Kano. Also, N4.2 billion will be used for the rehabilitation of Kunya-Kanya-Barbura-Mutum Road in farming communities of Jigawa State, while N6.3 billion is devoted to the rehab of FCET New Site-Bagwai-Gwarzo Road in Kano.

The government is equally setting aside N25.2 billion for the construction of the four sections of Ota-Idiroko Road, including N3.5 billion for the dualisation of Bende-Ohafia Road with four bridges.

The Federal Government intends to spend N3.5 billion for the rehabilitation of Kabba in Kogi State (Iyamoye – Omuo – Ekiti – Ikole – Ifaki-Ado Ekiti (Omuo), with a view to linking these communities. Another N7 billion is earmarked for washout sections of Rivers, Delta and Akwa Ibom states, while N17.8 billion serves for the dualisation of phases 1 & 2 of the Benin-Akure-Ijesha Road.

Again, the sum of N14 billion is budgeted for the Kano Bypass, while N12.6 billion is earmarked for the rehab of the Onitsha-Owerri Road to make trading between Onitsha and Imo and Abia states easy.

The PUNCH found that if the budget is implemented religiously, there will be appreciable growth in Nigeria’s infrastructure stock, estimated at 30 per cent to 35 per cent of the Gross Domestic Product. This level falls far below the international benchmark of 70 per cent recommended by the World Bank for middle-income and growing economies.

The ex-Minister of Finance and Coordinating Minister for the Economy, Olawale Edun, disclosed that Nigeria has a $14 billion annual infrastructure investment gap.

The Alvin Report says decades of underinvestment in infrastructure have led to the present predicament, and with Nigeria’s population growing by about three per cent annually, the infrastructure deficit could balloon to about $20 billion–$25 billion by 2035.

‘Nigeria risks slower growth, higher poverty, and reduced competitiveness if it does not close this gap’, the report warned,

According to the Nigerian Economic Summit Group, Nigeria’s weak physical and technological infrastructure continues to erode its competitiveness relative to peer economies (see Figure 1). It added that data reveal significant gaps in basic infrastructure, such as unreliable power supply, inadequate transport networks, and limited logistics capacity, which raise business costs and constrain productivity.

‘These shortcomings have discouraged investment, undermined efficiency, and left Nigeria lagging behind countries that have modernised their infrastructure to drive competitiveness and economic growth.

A consultant economist, Chukwunonso Iheoma, is worried that the money will not all be released, stressing that such a situation will be another missed opportunity for Africa’s fourth biggest economy.

‘It is not just about how much is budgeted; it is how much is released. We have been struggling with the implementation of the budgets since this administration came to power.

‘Right now, the 2025 budget is still being implemented. So, tell me, when will this budget be implemented? There is no guarantee that half of the budget will be implemented’.