FG inserts N487bn rail, highway projects into 2026 budget

The Federal Government has quietly inserted fresh infrastructure projects worth about N487.56bn into the reviewed 2026 budget, signalling an aggressive push to expand rail and transport networks beyond earlier projections.

Findings by The PUNCH on Thursday showed that the nine projects, largely centred on light rail systems and transport corridors, were not captured in the initial budget proposal submitted to the National Assembly in 2025.

Instead, the provisions surfaced in the 2026 Appropriation Bill approved by the National Assembly and detailed in the House of Representatives Order Paper dated March 31, 2026, as well as in the accompanying budget schedule.

The infrastructure outlook was contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning.

At the heart of the new spending plan is the Lagos Green Line project, which received the single largest allocation of N170bn as counterpart funding under the Renewed Hope Infrastructure Programme, to be financed through the Ministry of Finance Incorporated.

Other major allocations include N125bn for the Kaduna Light Rail project, N120bn for Kano Light Rail, and N50bn for Ogun State Light Rail, pointing to a coordinated federal effort to deepen urban mass transit systems across key economic hubs.

In addition to the full-scale projects, the government earmarked N4bn each for feasibility studies for light rail systems in Enugu and Maiduguri, while N5.6bn was set aside for a nationwide narrow gauge rail assessment.

Further provisions include N8.96bn for feasibility studies covering the Calabar–Maiduguri corridor and the proposed Maiduguri–Sokoto superhighway, underscoring a broader ambition to connect Nigeria’s southern and northern economic belts.

The newly introduced projects bring a fresh dimension to the 2026 fiscal plan, which was originally presented by President Bola Ahmed Tinubu on December 19, 2025, with a total size of N58.18tn under the theme, “Budget of Consolidation, Renewed Resilience and Shared Prosperity.”

However, the version eventually passed by lawmakers reflects a significant expansion in spending, particularly in capital projects and legacy obligations.

Beyond infrastructure, the document also revealed that the Federal Government voted N482.76bn as counterpart funding for a Nigeria–United States memorandum on health sector intervention, indicating a parallel focus on strengthening healthcare delivery.

Even more striking is the allocation of N3.5tn to settle outstanding 2025 legacy obligations, a move analysts say could ease fiscal pressures on contractors and government agencies weighed down by unpaid debts.

A breakdown of sectoral allocations further showed that the Federal Ministry of Works received an increased capital allocation of N3.17tn, up from N3.06tn in the original proposal, alongside a recurrent expenditure of N48.1bn.

Other critical sectors also recorded substantial capital votes, including agriculture with N3.26tn, innovation, science and technology with N1.83tn, and health with N1.23tn, reflecting the administration’s prioritisation of food security, technology, and social services.

The inclusion of feasibility studies for major corridors such as Calabar–Maiduguri and Maiduguri–Sokoto is also seen as a strategic move to prepare the groundwork for future large-scale infrastructure investments.

The document further revealed that the government has increased the capital allocation to the Federal Ministry of Works by N105.83bn in the revised 2026 budget, pushing the total vote to N3.17tn from N3.07tn initially proposed.

An analysis of the budget document showed that the allocation rose from N3,068,778,665,452 in the original proposal to N3,174,611,665,457 in the approved version, representing an increase of N105,833,000,005 or about 3.45 per cent.

The ministry also received N48.11bn as recurrent expenditure, bringing its total allocation closer to the Federal Government’s aggressive infrastructure spending target under the 2026 fiscal framework.

The increase reinforces the central role of the works ministry in executing road and critical infrastructure projects across the country, in line with the policy direction of President Bola Ahmed Tinubu’s administration.

Further breakdown of capital expenditure across ministries revealed that the Federal Ministry of Agriculture and Food Security received the largest allocation at N3.26tn, slightly higher than the Works Ministry’s N3.17tn.

The Federal Ministry of Innovation, Science, and Technology followed with N1.83tn, while the Federal Ministry of Health and Social Welfare was allocated N1.23tn, underscoring the government’s prioritisation of food security, technology advancement, and healthcare delivery.

Other significant allocations include N655.82bn for education, N643.36bn for labour and employment, and N625.30bn for finance, indicating a broad spread of spending across economic and social sectors.

In the infrastructure-related ministries, the Federal Ministry of Power received N434.67bn, the Federal Ministry of Transportation got N423.03bn, while the Federal Ministry of Water Resources and Sanitation was allocated N582.35bn.

The Federal Capital Territory Administration also secured a substantial N460.74bn capital vote, reflecting ongoing development efforts in the nation’s capital.

The budget also showed relatively smaller allocations to oversight and regulatory agencies, including N748.4m for the Infrastructure Concession Regulatory Commission and N848.04m for the Fiscal Responsibility Commission.

Meanwhile, key governance institutions such as the Presidency received N147.86bn, while the Office of the National Security Adviser was allocated N286.90bn, reflecting continued emphasis on security and administrative operations.(Punch)