FG’s Infrastructure Spending Hits N6.47tn, Highways Dominate

The Federal Government spent N6.47tn on strategic infrastructure development between June 2023 and December 2025, with major highway projects accounting for more than half of the expenditure.

According to the Federal Government’s Nigeria Reform Scorecard on savings from fuel subsidy, the Lagos-Calabar Coastal Highway received the largest allocation, with N2.23tn disbursed for its construction.

The Sokoto-Badagry Superhighway followed with N1.11tn, while N489.3bn was spent on the Trans-Sahara Superhighway. Together, the three projects accounted for approximately N3.83tn, or about 59 per cent, of the N6.47tn infrastructure expenditure.

The report stated that the government recorded incremental expenditure of N30.64tn during the period, following economic reforms implemented since June 2023.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the removal of petrol subsidy and foreign exchange reforms generated N15.8tn in additional resources for the Federation.

He explained that the savings did not appear as a separate item in the Federation Account but were reflected through increased revenue collections resulting from higher naira values of foreign-denominated transactions.

Further analysis showed that the Lagos-Calabar Coastal Highway accounted for about 34 per cent of total strategic infrastructure spending.

Other major expenditures included N366bn for emergency road interventions, N304.2bn for the Abuja-Kaduna-Kano Road, N291.3bn for the Lekki Deep Sea Port Access Road and N250bn for the Renewed Hope Smallholder Support Programme.

The government also allocated N228.4bn to the Ilesha-Akure-Benin road section, N124.7bn for 1,550 housing units for Nigerian Armed Forces personnel and N109.9bn for Operation Lake Sanity.

The Ministry of Finance said the infrastructure spending was intended to address long-standing constraints limiting investment, productivity and economic growth.

However, the spending occurred amid concerns over rising debt-service obligations and other fiscal pressures.

Wage adjustments accounted for N9.39tn of incremental expenditure, while the impact of foreign exchange movements on external debt service accounted for N9.37tn.

Together, both categories consumed N18.76tn, representing about 61.2 per cent of the N30.64tn incremental expenditure.

The government also recorded incremental borrowing of N11.85tn during the period, highlighting the continuing pressure on public finances.

The Lagos-Calabar Coastal Highway remains one of the administration’s flagship projects, with construction progressing across several sections of the southern corridor.