Nigeria’s proposed 2026 federal budget outlines a bold plan to allocate N4.23 trillion to roughly 50 major capital projects, spanning eight federal ministries. According to data compiled by BudgIT Nigeria and shared on its official X handle on February 7, 2026, this investment strategy prioritizes both infrastructure and human capital, signaling a government effort to balance economic growth with social development.
The bulk of the allocations are concentrated in the Ministries of Works, Power, and Transport, with N2.5 trillion, N894.16 billion, and N316.63 billion earmarked respectively. These investments target critical infrastructure such as road construction, electricity transmission, rural electrification, and urban transit projects, reflecting a focus on connectivity and reliability nationwide. Agriculture, education, health, and water resources also receive meaningful capital allocations, emphasizing food security, human capital development, and access to essential services.
A closer look at the figures shows that power and road infrastructure alone account for more than N3.4 trillion, making them the backbone of the capital budget. Meanwhile, the remaining allocations support transport modernization, agro-industrial zones, and social interventions. This broad-based approach demonstrates an intent to synchronize physical infrastructure improvements with social development rather than isolated projects, aiming for a holistic economic impact.
Economists say that while individual projects may appear modest, the cumulative scale of this investment marks one of Nigeria’s most ambitious capital spending programs in recent years. For businesses and investors, opportunities are emerging across construction, renewable energy, transport services, and public-private partnerships. If executed effectively, improved roads and power supply could lower operational costs and boost productivity across the economy.
The 2026 budget totals N58.18 trillion, including a projected N23 trillion deficit, with infrastructure taking center stage alongside recurrent costs such as personnel and debt servicing. With Works, Power, Transport, Education, and Health receiving prioritized funding, the government signals a dual strategy: bridging long-standing infrastructure gaps while strengthening human capital and social services. The success of this strategy, however, will depend on timely execution, proper funding, and effective governance.
source: nairametrics