The Independent Media and Policy Initiative (IMPI) has disclosed that Nigeria’s infrastructure spending under President Bola Ahmed Tinubu reached its highest level in 25 years, with capital allocations projected at about $23 billion in the 2026 national budget.
In a statement issued in Abuja by its Chairman, Dr Omoniyi Akinsiju, the policy think-tank said the scale of infrastructure funding represents a major shift in Nigeria’s fiscal structure, with capital expenditure now accounting for nearly 50 per cent of total budget outlays.
IMPI noted that prior to the current administration, Nigeria had not consistently exceeded $14 billion annually in infrastructure spending since 2000, a trend it said contributed significantly to the country’s widening infrastructure gap.
According to the group, the 2026 infrastructure allocation of about $23 billion marks a sharp increase above the estimated $14.2 billion benchmark previously projected by global consultancy KPMG for adequate infrastructure investment in Nigeria.
The think-tank also highlighted that successive governments between 2000 and 2023 struggled with low capital budget implementation, with performance levels in many years falling below 70 per cent of approved allocations.
It explained that the current administration’s fiscal framework reflects a stronger emphasis on capital projects, particularly in roads, power, transport and other critical infrastructure sectors.
IMPI acknowledged that while earlier administrations made efforts to improve capital spending—especially under former President Muhammadu Buhari through increased borrowing—the scale and structure of current allocations represent a new fiscal peak.
Dr Akinsiju said Nigeria’s infrastructure financing challenge has been shaped by decades of underinvestment, despite oil revenue windfalls between 2000 and 2014, during which capital spending remained comparatively low.
He said the shift to higher infrastructure spending is aimed at addressing Nigeria’s estimated multi-trillion-naira infrastructure deficit, which has long constrained productivity and economic growth.
The group, however, stressed that the effectiveness of the $23 billion allocation will depend on execution capacity, noting that past budget cycles have often fallen short due to implementation bottlenecks.
It argued that improving capital project delivery could help reduce logistics costs, boost industrial productivity, and attract more private sector investment into the economy.
IMPI concluded that Nigeria’s current fiscal direction signals a transition toward infrastructure-led growth, but warned that sustainability will depend on efficient project management and transparency in public spending.
