15 Nigerian States Commit ₦10.7 Trillion to Infrastructure in 2026 Fiscal Push
budget
An analysis of 2026 fiscal estimates reveals that 15 Nigerian states have collectively earmarked ₦10.7 trillion for capital expenditure, representing a significant sub-national effort to address the country’s chronic infrastructure deficit. These allocations ratified between November 2025 and January 2026 it prioritise the construction and upgrade of roads, schools, hospitals, and public utilities across the federation.
Regional Leaders in Capital Prioritisation
Fiscal data indicates a marked shift toward capital-heavy budgeting, with several states in the South-East leading in percentage terms. Ebonyi State has allocated ₦749.49 billion to infrastructure, representing 84.7% of its ₦884.87 billion total budget the highest proportion among the 15 states reviewed.
Imo State follows closely with ₦1.2 trillion (83.4%) of its ₦1.44 trillion budget dedicated to capital projects. Similarly, Enugu State has set aside ₦1.29 trillion, or 80% of its ₦1.62 trillion estimate, for essential social and physical infrastructure. These figures reflect a strategic institutional focus on long-term asset development over recurrent administrative spending.
Comparative Budgetary Allocations by State
The 2026 fiscal year shows varying degrees of infrastructure prioritisation across different geopolitical zones:
StateTotal BudgetCapital Expenditure % of Total
Lagos ₦4.237 trillion ₦1.23 trillion 29.2%
Imo ₦1.44 trillion ₦1.2 trillion 83.4%
Enugu ₦1.62 trillion ₦1.29 trillion 80%
Akwa Ibom ₦1.584 trillion ₦1.16 trillion 73.7%
Kano ₦1.477 trillion ₦934.6 billion 63.3%
Kaduna ₦985.9 billion ₦698.9 billion 70.9%
While Lagos State maintains the largest overall budget at ₦4.237 trillion, its capital allocation of 29.2% suggests a more balanced fiscal approach between infrastructure and recurrent obligations. In contrast, Kaduna State has directed 70.9% of its ₦985.9 billion budget to capital projects, with 25% of that specific pool earmarked for the education sector.
Financing Strategies and Economic Rationale
Nigeria currently faces an annual infrastructure funding gap of approximately $100 billion, a figure projected by credit rating agency Agusto & Co. to reach $878 billion by 2040. To address this, state governors are moving beyond traditional reliance on the Federation Account Allocation Committee (FAAC).
Funding for the ₦10.7 trillion commitment will be sourced through a combination of domestic and international loans, bond issuances, grants, and Public Private Partnerships (PPP). Analysts, suggest that attracting private capital through streamlined regulations and predictable tax policies is essential to ensure these projects are insulated from fluctuations in internally generated revenue (IGR).
Forward Outlook
The ₦10.7 trillion budgetary commitment by these 15 states signals a robust attempt to modernise regional economies and improve human capital indices. However, the successful mitigation of Nigeria's infrastructure deficit will depend on the efficiency of project execution and the ability of state governments to broaden their tax bases without stifling productivity. For investors and policymakers, the focus now shifts to the transparency of procurement processes and the tangible delivery of these high-value projects over the 2026 fiscal cycle
