Nigeria redirects N10 trillion from fuel subsidies to transform infrastructure

A bold policy shift is reshaping Nigeria’s future. See how ending fuel subsidies is funding highways, dams, and a stronger economy for millions.

, and Administrator

2026 January 4 . 7:04 PM

1 min read

In this image there is a truck in the middle. On the right side there are few people standing... — In this image there is a truck in the middle. On the right side there are few people standing beside the truck. In the background there is a wall. In front of the wall there is a table on which there is a jug,cup and covers. There are chairs around the table. On the right side there is another vehicle with the tyre.

Nigeria redirects N10 trillion from fuel subsidies to transform infrastructure

Nigeria has saved over N10 trillion annually since ending fuel subsidies in May 2023. The move, implemented by President Bola Tinubu within his first two years, has freed up funds for major infrastructure projects. These savings are now being redirected into large-scale developments aimed at boosting long-term economic growth.

For decades, Nigeria spent between N6 trillion and N7 trillion yearly to maintain fuel subsidies. The policy, which kept petrol prices artificially low, strained public finances and largely benefited a small portion of the population. Its removal has eased fiscal pressure, allowing the government to shift focus toward infrastructure.

Two key projects now underway are the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Super Highway. The latter will include around 66 dams upon completion, enhancing water management and regional development. Minister of Works David Umahi is overseeing both initiatives, which form part of a broader push to modernise Nigeria’s transport and utility networks. President Tinubu has framed these efforts as essential for building a more secure and prosperous country. By reinvesting subsidy savings into roads, highways, and water infrastructure, the administration aims to create lasting economic benefits for a wider segment of the population.

The end of fuel subsidies has unlocked significant resources for Nigeria’s infrastructure drive. With projects like the Sokoto-Badagry Super Highway and the Lagos-Calabar Coastal Highway advancing, the government is prioritising long-term development. These investments are expected to improve connectivity, water access, and economic opportunities across the country.

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