Fifteen states in Nigeria have collectively earmarked ₦10.7 trillion for capital expenditure in 2026, signaling an ambitious effort to upgrade roads, schools, hospitals, and public utilities. This comes amid persistent national infrastructure deficits, estimated at roughly $100 billion annually and projected to rise to $878 billion by 2040, according to Augusto & Co.
The states leading the capital spending drive include Lagos, Akwa Ibom, Enugu, Anambra, Kano, Imo, Yobe, Ebonyi, Oyo, Kaduna, Ekiti, Osun, Ondo, Edo, and Plateau. Governors presented budgets between November 2025 and January 2026, with emphasis on capital projects aimed at improving human capital, public services, and regional economic growth.
Top States by Capital Allocation
Ebonyi: ₦749.49bn (84.7% of total budget)
Imo: ₦1.2tn (83.4%)
Enugu: ₦1.29tn (80%)
Anambra: ₦595.3bn (77.7%)
Akwa Ibom: ₦1.16tn (73.7%)
Kaduna: ₦698.9bn (70.9%)
Edo: ₦637bn (67.8%)
Kano: ₦934.6bn (63.3%)
Other Notable Allocations
Plateau: ₦501.09bn (61.3%)
Ondo: ₦303.58bn (57.9%)
Yobe: ₦291.9bn (56.6%)
Oyo: ₦505bn (56.6%)
Osun: ₦388.38bn (55%)
Ekiti: ₦193.7bn (46.6%)
Lagos: ₦1.23tn (29.2% of ₦4.237tn budget)
The figures highlight a diverse approach to development, with states like Ebonyi and Imo heavily prioritising infrastructure relative to recurrent spending, while Lagos takes a more balanced approach.
Funding Strategy
Due to limited internally generated revenue, most governors plan to finance projects through a combination of loans, bond issuances, grants, capital receipts, and public-private partnerships (PPPs). Analysts stress that leveraging these alternative sources will be crucial for translating budgeted allocations into tangible improvements.
Expert Perspective
Dr. Ayodeji Ebo, Managing Director of Optimus by Afrinvest, emphasized the importance of developing local economies and attracting investment through reliable infrastructure, predictable regulation, and stronger PPPs. He added, “Fiscal sustainability will come not from higher transfers or more debt, but from productive local economies, broader tax bases, disciplined spending, and smarter collaboration.”
The 2026 infrastructure push represents a major test for Nigeria’s sub-national governments in converting ambitious budgetary allocations into real economic and social impact.
I find it hard to believe all 15 states will actually spend that much on infrastructure. Hope it’s not just empty promises!
I wonder if this infrastructure spending will actually improve the lives of ordinary Nigerians or just benefit the wealthy elites.
I wonder if all that money will actually go towards the infrastructure or if some will mysteriously disappear. Corruption, anyone?
Wow, investing in infrastructure is great, but will all 15 states really spend that much? Seems ambitious!
I wonder if all that money will actually improve infrastructure or just line pockets. Corruption is a real concern.