Nigeria's infrastructure spending patterns have raised questions about regional priorities. A recent study of inter-urban travel from Lagos shows that 36.5 per cent of passengers are headed to the Southeast, which is more than the South-South and every northern zone combined. This highlights the significance of the Southeast as a commercial hub.
The cargo story is even more striking, with 60 to 65 per cent of all containerized cargo berthing at Lagos ports destined for Onitsha and Aba. The National Inland Waterways Authority confirmed this, underscoring the Southeast's crucial role in Nigeria's economy. Despite this, federal infrastructure spending since 2015 has not reflected the region's importance.
According to the 2016 capital budget, the Northwest received 25.7 per cent of the allocation, while the Southeast received a mere 9.8 per cent. Under the NNPCL's road scheme, the North-Central region got ₦244.87 billion for 791 kilometres, whereas the Southeast got ₦43.28 billion for 122 kilometres. This disparity has sparked concerns about the fairness of infrastructure allocation.
The Lagos–Kano railway, contracted at US$1.9 billion, has been prioritized despite carrying a fraction of the traffic flowing East. Economists have questioned the project's viability, describing it as "not likely to pay for the public investment." In contrast, the Lagos–Onitsha–Aba corridor serves the actual economy, carrying a significant volume of cargo and passengers.
The proposed Lagos–Calabar coastal highway, estimated at ₦15 trillion, has been routed through the South-South littoral, bypassing the Onitsha–Aba industrial corridor. This has raised concerns that the project may not be serving the region's most pressing needs. A re-routing of the coastal highway through the Southeast could better serve the existing economic hubs.
Infrastructure experts argue that investments should follow demand, and in this case, the demand is eastward. The Southeast has consistently generated significant economic activity, and infrastructure spending should reflect this. The federal government's allocation patterns, however, have favored the North and West, sparking concerns about regional disparities.
Until the contradiction between infrastructure spending and economic demand is resolved, Nigeria will continue to build expensive roads to areas with less economic activity, while critical roads in the Southeast crumble under the weight of traffic they were not funded to carry. The issue remains a pressing concern for policymakers and analysts.
Key points
- The Southeast region receives a disproportionately small share of federal infrastructure spending despite being a major commercial hub.
- The proposed Lagos–Calabar coastal highway has been routed through the South-South littoral, bypassing the Onitsha–Aba industrial corridor.
- Infrastructure experts argue that investments should follow demand, and in this case, the demand is eastward.
