Dip Connect Online News reports that 15 Nigerian states have earmarked more than ₦10 trillion for infrastructure development in 2026, in what is being described as a major fiscal drive to improve roads, schools, hospitals and public utilities.
An analysis of state budgets shows that Lagos, Akwa Ibom, Enugu, Anambra, Kano, Imo, Yobe, Ebonyi, Oyo, Kaduna, Ekiti, Osun, Ondo, Edo and Plateau States have collectively allocated ₦10.7 trillion for capital expenditure in the 2026 fiscal year.
Between November 2025 and January 2026, governors presented their budgets to state assemblies and signed the approved proposals into law. The strong focus on capital spending is aimed at boosting human capital, improving public services and stimulating regional economic growth, although analysts note that success will depend on how well and how quickly the funds are implemented.
Nigeria continues to struggle with huge infrastructure deficits, estimated at about $100 billion annually, and projected to rise to $878 billion by 2040, according to a report by credit rating agency Augusto & Co.
Ebonyi State leads in infrastructure prioritisation, with ₦749.49 billion, representing 84.7 per cent of its ₦884.87 billion total budget, set aside for capital projects.
Imo State follows closely, allocating ₦1.2 trillion or 83.4 per cent of its ₦1.44 trillion budget.
Enugu State has budgeted ₦1.29 trillion (80 per cent of its ₦1.62 trillion budget), while Anambra State plans to spend ₦595.3 billion (77.7 per cent of ₦766 billion).
Akwa Ibom State has set aside ₦1.16 trillion, which is 73.7 per cent of its ₦1.584 trillion budget, for capital projects.
State governments remain heavily dependent on federal allocations from the Federation Accounts Allocation Committee (FAAC), alongside VAT proceeds and derivation funds for oil-producing states. Internally generated revenue remains weak in most states.
To fund their ambitious capital plans, governors intend to rely on a mix of loans, bonds, grants, capital receipts and public–private partnerships. Analysts say these alternative financing sources will be crucial to ensure that infrastructure spending results in real development.
Other key state allocations
Yobe State: ₦291.9bn (56.6% of ₦515.53bn budget)
Oyo State: ₦505bn (56.6% of ₦892bn budget)
Osun State: ₦388.38bn (55% of ₦705bn budget)
Ekiti State: ₦193.7bn (46.6% of ₦415.57bn budget)
Lagos State, Nigeria’s commercial hub, despite having the largest total budget of ₦4.237 trillion, will spend ₦1.23 trillion (29.2 per cent) on capital projects, reflecting a more balanced approach between recurrent and capital expenditure.
Kaduna State has allocated ₦698.9bn (70.9 per cent of ₦985.9bn), with education taking about a quarter of that amount.
Edo State will spend ₦637bn (67.8 per cent of ₦939.85bn), while Kano State has earmarked ₦934.6bn (63.3 per cent of ₦1.477tn).
Plateau State set aside ₦501.09bn (61.3 per cent of ₦817.51bn), and Ondo State will invest ₦303.58bn (57.9 per cent of ₦524.41bn) in capital projects.
Economists have advised governors to develop their states’ comparative advantages in areas such as agriculture, manufacturing, tourism, logistics and services.
Dr Ayodeji Ebo, Managing Director of Optimus by Afrinvest, told Dip Connect Online News that attracting investment requires reliable infrastructure, streamlined regulation, access to land and predictable tax policies.
He added that stronger public–private partnerships and regional cooperation could help reduce over-reliance on borrowing, stressing that fiscal sustainability will come from productive local economies, broader tax bases, disciplined spending and smarter collaboration.
Elijah Adeyemi
