Abandoned projects, unpaid contractors undermine Nigeria’s $2.3trn infrastructure goal

Nigeria’s ambition to address its estimated $2.3 trillion infrastructure deficit is facing major setbacks as abandoned projects, unpaid contractors and repeated budget extensions continue to undermine infrastructure delivery.

Despite significant government allocations to capital projects, concerns over poor implementation have raised questions about the country’s ability to translate budgetary commitments into completed roads, healthcare facilities and other essential infrastructure.

Jobson Ewalefoh, Director-General of the Infrastructure Concession Regulatory Commission (ICRC), recently described Nigeria’s infrastructure gap as a major investment opportunity, stressing the importance of public-private partnerships (PPPs) in mobilising the funds required to address it.

However, findings from the Federal Government’s First Quarter 2026 Budget Implementation Report indicate that capital budget implementation by ministries, departments and agencies (MDAs) stood at zero as of March 31.

The report attributed the absence of fresh capital releases to the extension of the 2025 capital budget utilisation period to December 31, 2026, meaning some agencies were still using funds from the previous year's appropriation.

Although the Federal Government allocated N32.29 trillion to capital expenditure in the 2026 budget, the lack of fresh releases has raised concerns about the pace of ongoing projects and the funding of new ones.

A February report by BudgIT's project-monitoring platform, Tracka, further highlighted the implementation gap. It found that only 52 per cent of 2,760 federal capital projects monitored across 30 states showed evidence of on-the-ground delivery.

The projects were funded under the 2024 federal budget, with monitoring concluding in October 2025 after two extensions of the implementation timeline.

Tracka also identified N8 billion associated with abandoned projects where funds had been released. Of this amount, approximately N7.8 billion was linked to projects that remained abandoned.

The organisation further identified N2.19 billion associated with projects that were not executed despite disbursements, while N8.61 billion was linked to projects classified as fraudulently delivered.

Taraba, Abia, Nasarawa, Adamawa and Ogun accounted for 97.5 per cent of the abandoned projects monitored, with Taraba recording the highest share at 29.90 per cent.

Osiyemi Joshua, Head of Tracka at BudgIT, said the findings showed that Nigeria's infrastructure challenge extended beyond inadequate funding, as projects had received allocations without delivering the expected results.

Unpaid contractors face financial difficulties

Delayed payments for government contracts have also placed indigenous construction companies under severe financial pressure.

Rotimi Raheem, spokesperson for the All Indigenous Contractors Association of Nigeria (AICAN), said many contractors had borrowed from banks and other financial institutions to execute government projects but were struggling to repay their loans because outstanding payments dating back to 2024 remained unsettled.

He said some contractors had lost properties pledged as collateral, while others were facing financial and health difficulties.

Raheem added that the payment delays had forced contractors to lay off workers, including artisans and other informal employees who depend on construction projects for their livelihoods.

Although some payments had been made following previous protests, he said the amounts released remained insufficient compared with outstanding obligations.

He also blamed the centralisation of payment responsibilities under the Office of the Accountant-General of the Federation for making it more difficult for contractors to determine when outstanding funds would be released.

Major road projects receive repeated allocations

An analysis of the 2025 approved budget and the 2026 Appropriation Act showed that at least eight major federal road projects funded in 2025 reappeared in the 2026 budget under the same project codes.

The selected projects received a combined allocation of N211.4 billion in 2026, compared with N181 billion in the previous year's budget.

One example is the Enugu-Port Harcourt Expressway, Section III, covering the Enugu-Lokpanta stretch. The project received N17 billion in the 2025 budget and another N21.9 billion in 2026, despite previous statements by Works Minister David Umahi that the 61-kilometre section had been completed.

The Kano-Katsina dual carriageway also received fresh allocations across its two phases, with a combined N100.8 billion provided in the 2026 budget.

Other projects appearing in both budgets include sections of the Kano-Maiduguri Road, the Abuja-Lokoja Road and the Zaria-Katsina corridor.

The repeated allocations come after the Federal Government directed MDAs to carry over 70 per cent of their 2025 capital allocations into 2026, citing revenue constraints and the need to prioritise ongoing projects.

Senators raise concerns over budget implementation

The payment crisis and poor capital budget implementation have also attracted criticism from lawmakers.

During a Senate engagement with Shamseldeen Ogunjimi, the Accountant-General of the Federation, senators questioned why contractors remained unpaid despite claims of improved government revenue.

Danjuma Goje, representing Gombe Central, said contractors had increasingly approached lawmakers for intervention over payments for executed projects.

Muntari Dandutse, representing Katsina South, also criticised the centralised payment system, saying it was affecting government credibility and the settlement of outstanding obligations.

The concerns highlight the growing disconnect between Nigeria's infrastructure ambitions and the government's record of project execution.

While the ICRC has identified public-private partnerships as an important avenue for attracting investment, the persistence of abandoned projects, delayed payments and repeated budget rollovers raises questions about the country's capacity to deliver infrastructure efficiently.

With an estimated $2.3 trillion infrastructure deficit to address, Nigeria faces the challenge of not only mobilising more funding but also ensuring that existing allocations result in completed and functional public assets.