Nigeria starts road project in Niger State

Nigeria has begun work on a major road reconstruction and expansion project in Niger State, covering between 376 and 401 kilometers. The Lambata-Bida-Mokwa-Makera-Kontagora Federal Road project is valued at 1.8 trillion naira and is being led by the Dangote Group under a government initiative called the Presidential Tax Credit Scheme.

Officials launch the project

The project was officially launched by the Minister of Works, David Umahi, and the Governor of Niger State, Umar Muhammad Bago. It is part of the federal government's "Renewed Hope" program, which aims to boost infrastructure development across the country.

Transport spending rises but challenges remain

Despite a significant increase in transportation spending, from about 100 billion naira in 2021 to 2,500 billion naira in 2025, the World Bank has noted that improvements in mobility have not been enough. This spending accounts for 26.5 percent of the total executed budget expenditures.

Rising fuel costs add pressure

Fuel prices have risen sharply, with diesel increasing by 130 percent and gasoline by 52 percent between February and May 2026. This has increased operating costs for transporters and may lead to higher freight rates and food prices.

Food inflation highlights transport issues

According to the World Bank's Nigeria Development Update report from October 2026, average food inflation reached 20 percent in July and August 2026, compared to 8.9 percent in January. This highlights the impact of logistics costs on food prices.

World Bank emphasizes road network integration

The World Bank points out that the challenge is not just building new roads, but also integrating them into a coherent network. This would improve connections between agricultural production areas, intermediate markets, and urban centers, helping to reduce transportation costs and inflation.