The Federal Government has earmarked a N367.9 billion multilateral and bilateral loan for the ongoing construction and dualisation of the Lafia Road and the 9th Mile (Enugu)–Otukpo–Makurdi corridor in the proposed 2026 budget of N58.47 trillion.
Details contained in the 2026 Appropriation Bill show that the loan-backed project is one of the largest allocations under the Ministry of Works and forms part of the government’s strategy to fast-track long-standing federal road projects through a combination of budgetary funding and external financing.
According to the document, the Ministry of Works was allocated N3.49 trillion for the 2026 fiscal year, with N3.44 trillion dedicated to capital expenditure, largely for ongoing road construction, rehabilitation, and dualisation projects across the country.
The Lafia Road and 9th Mile-Otukpo-Makurdi project is listed under ERGP12234171 as a multilateral/bilateral tied loan, with a proposed allocation of N367,902,737,115. The project covers the construction of Lafia Road and the dualisation of the strategic 9th Mile–Otukpo–Makurdi route under Keffi Phase II, which links parts of the North-Central and South-East regions.
The size of the allocation indicates that the project will be financed largely through external borrowing rather than direct budgetary releases, a funding model increasingly adopted for capital-intensive federal highway projects. The Appropriation Bill also classifies the project as ongoing, placing it among several long-term road works currently supervised by the Ministry of Works.
Beyond the Lafia–Makurdi corridor, the 2026 budget provides funding for other major ongoing projects under the Ministry. These include N52.5 billion for the dualisation of the Kano–Katsina Road (Phase II) and N23.8 billion for Phase I of the same corridor.
Additional allocations include N23.8 billion for multinational counterpart projects such as the Lafia Bypass and the 9th Mile-Otukpo-Makurdi Road, N13.3 billion for the dualisation of the Kano-Maiduguri Road (Section I: Kano–Wudil–Shuarin), N12.6 billion for the reconstruction of the Ikorodu-Itoikin Road in Lagos State, and N7.7 billion for the reconstruction of the Abuja-Lokoja Road (Zuba-Abaji section).
The construction of the Ikot Ekpene Border-Aba-Owerri dualisation received N7.7 billion, while N7.0 billion was allocated for the rehabilitation of the Numan–Jalingo Road. The dualisation of the Kano-Maiduguri Road (Damaturu-Maiduguri section) was also allocated N7.0 billion, with N7.01 billion provided for the reconstruction of the Mubi-Maiduguri Road (Section 3).
Further details in the budget show that the Ministry of Works was allocated N100 billion for a contingency fund and N600 billion for proposed new projects across the six geopolitical zones, although specific projects under this heading were not disclosed.
The allocations underscore the scale of investment planned for Nigeria’s road infrastructure in 2026 and highlight the growing reliance on alternative funding models to close the infrastructure gap.
The Federal Government has repeatedly noted that maintaining Nigeria’s estimated 35,000-kilometre federal road network cannot depend on annual budgetary allocations alone. In February 2025, the Minister of State for Works, Muhammad Bello Goronyo, cited years of neglect, inflation, and security challenges as key factors deepening the infrastructure deficit, stressing the need for external financing and private-sector participation.
Several major road projects are now being advanced through such models. While the Lafia Road and 9th Mile–Otukpo–Makurdi dualisation will rely on a N367.9 billion loan, the 125-kilometre Benin-Asaba Superhighway is being developed entirely through private-sector funding, and the Lagos–Calabar Coastal Highway secured $747 million in July 2025 and an additional $1.2 billion in December 2025.
Roads funded through alternative financing arrangements are typically tolled to recover investments and ensure long-term sustainability.
