Subsidy Removal Nigeria: Reshaping Infrastructure & Finances

A recent inspection tour with the presidential media team revealed how savings from fuel subsidy removal are being redirected to major infrastructure projects in the North-West, writes SOLOMON ODENIYI

Following President Bola Tinubu’s May 2023 declaration that “fuel subsidy is gone,” public response has mainly focused on the resulting hardship.

Across the country, there have been widespread concerns over rising transport fares, increasing food prices, and a general rise in the cost of living.

These concerns have understandably dominated public discourse and media coverage, framing the subsidy removal largely as an economic burden on households.

Yet, beneath the immediate pain, a quieter narrative is unfolding, one that points to increased public revenues, expanded infrastructure projects, and renewed state-level development efforts.

One of the most significant outcomes of subsidy removal has been the sharp increase in allocations to states, which have provided subnational governments with unprecedented fiscal space.

According to the BudgIT Foundation, a civic-tech organisation, the total revenue of Nigerian states almost doubled in 2025 compared to the 2023 fiscal year, largely driven by increased allocations from the Federation Accounts Allocation Committee.

This financial boost is beginning to translate into tangible projects, particularly in northern states such as Kaduna, Kano, Jigawa, and Kebbi States.

Infrastructure push gains momentum

At the federal level, road and rail infrastructure have received renewed attention. A flagship example is the Abuja–Kaduna–Kano concrete highway, a major transport corridor expected to boost economic activity across the region.

Speaking on the road, the resident Engineer for the project, Chukuma Kalu, said the th first section of the road from Tunga Maje to Jere is scheduled for inauguration on May 29, while the remaining segments are projected for completion by December 2026.

Providing further details, Kalu explained that the adoption of concrete, specifically continuously reinforced concrete pavement, marks a deliberate shift from conventional asphalt technology.

According to him, concrete pavements, also known as rigid pavements, are structurally designed to bear vehicular loads more efficiently.

“Concrete pavements are rigid pavements. They carry the vehicular loads and transmit only a small fraction of that load to the subgrade,” he said, contrasting it with flexible asphalt pavements, which are more susceptible to failure when underlying layers weaken.

He noted that unlike asphalt, which often caves in due to sub-base defects, rigid pavement maintains structural integrity largely on its own.

“The rigid pavement on its own can carry most of the load, regardless of what is happening beneath it. That is why we can confidently say this road will last between 50 and 100 years,” Kalu added.

Addressing concerns about maintenance culture in Nigeria, Kalu pointed out, “Rigid pavement requires little to no maintenance, unlike asphalt. So regardless of maintenance culture, its durability is largely assured over time,” he said.

He further clarified that the construction is not merely mass concrete but reinforced concrete, similar to what is used in bridges and building decks.

Rail development projects are also underway, signalling a renewed focus on long-term infrastructure investment, with the Kano–Jigawa–Katsina–Maradi corridor emerging as a key component of regional connectivity. Providing an update, the Project Resident Engineer, Ali Bukar, stated, “This part is the branch line. It’s coming from Kano to Dutse, and the project has attained about 60 per cent completion. It is being funded by President Bola Tinubu.”

He explained that the project, located at Dundubus in Dutse Local Government Area of Jigawa State, is designed to enhance cross-border economic activities.

“The project is originally conceived to boost socio-economic activities for the people of the Niger Republic and Nigeria.

“It is expected to be completed from Kano, Jigawa to Katsina by December 2026, while Kano to Dutse will be completed by 2027. The extension to Maradi is also expected by 2027,” he added.

Bukar disclosed that construction is progressing across most segments. “We have about nine sections. Work is ongoing in all the sections except one, between Katsina to Jibia and Maradi, due to some diplomatic issues, which our Permanent Secretary is addressing,” he noted.

States feeling the impacts of increased funding

In Kaduna State, the impact of increased funding is visible across multiple sectors. Long-abandoned road projects, some stalled for nearly two decades, have resumed and are nearing completion. The Western Bypass, initially awarded in 2021, has recorded significant progress following an acceleration of construction work since 2023.

Ahmed Miyaki, Kaduna State Commissioner for Information, said the once-neglected road project was revived through President Bola Tinubu’s intervention under a tax credit arrangement with the Dangote Group.

“This road has been abandoned for years… it took the intervention of the president through a tax credit from Dangote. This is a very important road that leads from the beginning of Kaduna to the northern part of Kaduna. The road is about 21.5 km, but on two lanes; we are proud of the President for his intervention.

“The Eastern Bypass had also been abandoned for over 30 years. The road has about 13 km left. You won’t need to come through the metropolis to travel from any part of the North to Abuja.”

Healthcare infrastructure has also received a boost with the completion of the Bola Tinubu Specialist Hospital.  According to the facility’s Chief Medical Director, Abdulkadir Musa, over 3,000 patients have been treated since it was inaugurated in June 2025.

The CMD said the hospital has dedicated wings for women and children, a comprehensive oncology unit for cancer care, a fully equipped Intensive Care Unit, a radiology and imaging wing and a special care wing.

“Phase II of the hospital’s development will focus on establishing a cancer treatment and nuclear medicine centre – an initiative already approved by the Nigerian Nuclear Regulatory Authority. This phase is set to be supported by the Federal Government, with President Tinubu having assured the state of federal collaboration and intervention to complete this critical component,” he said.

The state government has also established skill acquisition centres across its three senatorial districts, aimed at equipping youths with vocational skills and reducing unemployment.

In addition, the FG has constructed 180 housing units for victims of the Tudun Biri drone incident, with plans for further development underway, while the state government built a church, mosque and road for residents of the community.

While speaking, Governor Uba Sani attributed many of these projects to improved federal support. He recently disclosed that the president approved two major projects worth trillions of naira for the state, describing the level of federal investment in the North as unprecedented.

In Kano State, the government said improved internally generated revenue and increased federal allocations are driving a wave of infrastructure projects aimed at accelerating development across key sectors.

Speaking during an inspection of the Abuja–Kaduna–Kano road, the Commissioner for Information and Internal Affairs, Ibrahim Waiya, said, “This is a federal road that is very important to us in Kano. We are pleased with the progress of the rehabilitation and the fact that it is nearing completion. Commuters can now travel more smoothly, even at night.”

At the Dan Agundi interchange, Commissioner of Works, Marwan Aminu, highlighted efforts to ease traffic congestion. “This is one of the most notorious junctions in Kano. With the three-layer flyover, including an underpass and elevated corridors, we expect to solve over 80 per cent of the traffic congestion,” he said, noting that the project is nearing completion.

On environmental infrastructure, Commissioner for Environment and Climate Change, Dr Dahiru Hashim, pointed to the Jakara-Korungogau drainage project. “This area used to be heavily polluted and prone to disease. With support from the President, who approved N47 billion, we are working to complete one of the largest ecological projects in the state,” he said.

In the health sector, officials said reforms are improving access and quality. “This facility provides free services to all children, including drugs and laboratory tests,” said Commissioner for Health, Dr Abubakar Labaran Yusuf, referring to the upgraded Hasiya Bayero Paediatric Hospital.

Meanwhile, in agriculture, Senator Kawu Sumaila underscored federal-backed interventions. “The dam was abandoned for decades, but the President approved funding for its rehabilitation. This will support irrigation and empower thousands of farmers.”

Across sectors, officials maintain that the projects reflect alignment between state initiatives and federal support under ongoing economic reforms. While in Jigawa, the government is scaling up youth empowerment through multiple skill acquisition centres, including the Renewed Hope facility in Dutse, alongside investments in modern agricultural machinery aimed at boosting food production and rural livelihoods.

At the Renewed Hope Technical Services Limited, Director General of the Economic Empowerment and Youth Employment Agency, Habib Ubali, described the centre as a hub for training and production.

“Here is a fabrication workshop where we construct and fabricate different equipment. We also have offices, control rooms and all facilities needed for efficient work,” he said.

He added that the facility produces items ranging from water cabins and hospital beds to traffic lights and bunk beds.

He noted that beyond production, the centre is designed to tackle unemployment and insecurity. “We are training young people so they can compete globally and also earn a living. If you don’t engage the youth, they will engage you the other way round,” Ubali said.

At the Bola Tinubu Multi-purpose Skills Acquisition Centre, he added: “We have about 14 different trades here—from ICT and tailoring to automobile and leather works. At a time, we train about 300 people, and annually we expect to graduate about 1,500.” He stressed that the initiative aligns with efforts to make the youths self-reliant.

Similarly, the Managing Director of the Jigawa State Agricultural Mechanisation Agency, Dr Ado Nasiru, said the state has procured large volumes of modern equipment to support farmers.

“We procured 300 tractors, 60 combined harvesters and several other implements to increase production and create jobs,” he said. He noted that trained technicians and operators have already been employed to ensure sustainability.

Nasiru added that the facilities are ready for a rollout. “We are waiting for Mr President to commission it. Everything is in place, and farmers are eager to benefit,” he said.