Lagos emerged as the highest spender, as Nigerian states spent N6.17 trillion on infrastructure in full year (FY) 2025, up from N1.489 trillion in 2022, representing a compound annual growth rate (CAGR) of 60.57 percent, according to a BudgIT report.
Infrastructure expenditure is a key driver of economic growth, productivity, and improved public service delivery.
The report stated that the aggregate infrastructure expenditure by Nigerian states increased significantly from N1.489 trillion in 2022 to N6.166 trillion in 2025, representing an overall nominal growth of 314.00 percent and a compound annual growth rate (CAGR) of 60.57 percent.
This growth outpaced the increase in aggregate state expenditure, indicating that infrastructure became a higher fiscal priority during the review period.
The analysis shows that between 2022 and 2025, Nigerian states experienced a significant improvement in their fiscal position, driven largely by increased Federation Account allocations following major fiscal reforms, which created additional fiscal space for state governments to expand infrastructure investment.
BudgIT’s analysis shows that the expansion in infrastructure spending was supported by improved fiscal capacity following higher Federation Account allocations, stronger internally generated revenue in many states, and broader fiscal reforms implemented after 2023.
As a result, states committed more resources to roads, transport, public buildings, housing, water infrastructure, and other capital projects aimed at improving economic productivity and public service delivery.
Infrastructure’s share of total actual expenditure of the states in Nigeria increased from 23.95 percent in 2022 to 34.49 percent in 2025, an increase of 10.53 percentage points, demonstrating that a greater proportion of public resources was directed towards long-term development projects.
However, performance varied considerably across states, with some significantly accelerating infrastructure investment while others recorded comparatively modest growth despite improved fiscal conditions.
Abia recorded the highest CAGR in infrastructure expenditure of all states, while the top ten was dominated by Northern states. Lagos recorded the highest amount of infrastructure expenditure, far exceeding every other state.
The infrastructure expenditure was heavily concentrated in road construction and public works between 2022 and 2025, according to the report, as the Ministry of Works accounted for 68.7 percent of state infrastructure expenditure.