The Federal Government has inserted over N487 billion worth of rail and highway projects into the 2026 Appropriation Bill, signaling a major push to fix transport bottlenecks and speed up inherited road and rail works nationwide. President Bola Tinubu presented the N58.18 trillion “Budget of Consolidation, Renewed Resilience and Shared Prosperity” to the National Assembly, with infrastructure taking a sizeable share despite a broader shift toward security and human capital.
Road infrastructure alone accounts for N3.23 trillion in the 2026 proposal, up 489% from the N548.56bn allocated in 2024. The Ministry of Works plans to spend N1.39 trillion on the construction of roads, N285.62bn on rehabilitation and repair, and N1.56 trillion on broader infrastructure delivery. The ramp-up is meant to complete 2,604 road projects inherited from previous administrations and ease transport costs for trade and growth.
On rail, the 2026 budget provisions total well over N240 billion, making it one of the most capital-intensive parts of the transport plan. The Nigerian Railway Corporation (NRC) gets N34.24bn, with N11.65bn for capital projects. That includes N5.97bn for train purchases, N4.19bn for rehabilitation of fixed assets, and funds for inspection vehicles, track materials, and station works. Separately, the FG earmarked N102.3bn as counterpart funding for the Lagos Green Line rail, after providing N146.14bn in 2025.
The 2026 budget directive also bans new capital projects, ordering MDAs to roll over 70% of their 2025 capital budgets into 2026. The aim is to focus spending on completion, not initiation, while managing revenue pressure. Officials say the N487bn-plus rail and highway investment reflects that strategy: consolidate existing assets, advance urban rail systems, and prepare corridors for private participation rather than launch scattered new builds.
Despite the headline N3.56 trillion infrastructure envelope for 2026 — down 13.1% from N4.06 trillion in 2025 — the government insists major projects are moving from “vision to reality.” With N5.41tn for defence and security, N3.52tn for education, and N2.48tn for health also on the table, Tinubu has vowed tighter budget discipline, an end to overlapping budgets, and results-driven execution to ensure the rail and highway investments actually reach the ground in 2026.
