Works Minister Sen. David Umahi proposed a ₦3.244 trillion capital allocation while highlighting a severe funding crisis in the current fiscal year.
He revealed that only ₦210.318 billion—a mere 9.7% of the 2025 capital budget—has been released to date.
Addressing the joint National Assembly committees on Works for 2026 budget defence, Umahi explained that the 2026 funds are earmarked for completing critical highways and four flagship infrastructure initiatives designed to clear a massive backlog of inherited projects.
The Minister noted that the administration inherited 2,064 ongoing projects in 2023, many of which remain stalled due to historical underfunding.
This financial strain has left the ministry with an estimated ₦2.2 trillion in unpaid debt to contractors for verified work completed in 2024 and 2025, he told the lawmakers.
Umahi noted that economic reforms, specifically the removal of the fuel subsidy and the floating of the Naira, have significantly driven up project costs, making consistent funding more urgent than ever.
“These changes necessitated a thorough review, adjustment of project scopes, and a reordering of spending priorities to align with available resources.
“Among the standout initiatives designated as legacy efforts are the ambitious Lagos–Calabar Coastal Highway and the expansive Sokoto–Badagry Superhighway,” he said.
The Minister reassured lawmakers that the infrastructure projects would be executed in stages, with specific segments scheduled for inauguration by May 29, 2026.
He noted that approximately 70% of the unfinished projects from the 2025 budget have been integrated into the 2026 framework, with future development relying on incremental funding to ensure consistent progress.
Among these initiatives is the Lagos-Calabar Coastal Highway, a landmark 700km project designed to link Lagos to Cross River State.
Traversing nine coastal states—Lagos, Ogun, Ondo, Edo, Delta, Bayelsa, Rivers, Akwa Ibom, and Cross River—the highway is being built in phases.
The first 47.47km section, running from Victoria Island to Eleko Village in Lekki, serves as the project’s starting point.
With a total estimated cost of ₦15 trillion, Umahi defended the expenditure, citing a cost of roughly ₦7.5 billion per kilometer for the specialized coastal construction.
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