Nigerian state governments have unveiled ambitious plans to address the nation’s infrastructure deficit by allocating a combined N28.85 trillion for capital projects over the next two years.
In 2025 alone, governors have proposed N17.51 trillion for infrastructure development, marking a significant increase from the N11.34 trillion budgeted in 2024.
Despite a 49.24% increase in federal allocations to states in 2024, rising to N15.12 trillion from N10.14 trillion in 2023, many states struggled to meet their infrastructure targets.
Last year, states recorded a deficit of N3.98 trillion, delaying critical projects in sectors such as roads, healthcare, and education.
For instance, Bauchi State plans to spend N284.02 billion in 2025, while Bayelsa State has earmarked N433.26 billion.
Lagos State has outlined ambitious projects, including the Lagos-Calabar Coastal Highway, a 700-kilometer project that will traverse nine states and is expected to generate a minimum of 50,000 direct and indirect jobs.
However, funding constraints and implementation challenges remain significant hurdles. The substantial portions of budgets directed towards recurrent expenditure and debt servicing may limit the resources available for direct welfare improvements.
To overcome these challenges, experts recommend that state governments explore alternative financing options, such as public-private partnerships, to ensure the successful execution of these infrastructure projects
