Higher Federal Allocations Set to Accelerate Infrastructure in Benue, Nasarawa
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Bigger federal allocations could give Benue and Nasarawa more firepower for infrastructure development. The additional funding is expected to support projects aimed at improving roads, connectivity and broader economic activity
Higher federal allocations are giving Benue and Nasarawa states greater fiscal capacity to invest in infrastructure and economic development, with roads, bridges, flood-control projects and industrial facilities among the major areas receiving attention. A recent inspection of projects across the two states highlighted how increased government revenue is being channelled into capital projects.
In Nasarawa, Governor Abdullahi Sule said the state's monthly allocation had increased from about ₦3.8 billion–₦4.5 billion to an average of ₦14 billion–₦16 billion. According to the state government, the additional revenue has enabled it to undertake approximately ₦90 billion in infrastructure projects without commercial bank borrowing.
Benue is also linking higher revenues to a renewed infrastructure push. Projects highlighted include the Taraku Mills, a ₦70 billion industrial project expected to generate around 2,000 direct and indirect jobs, as well as the Katsina-Ala River Bridge, which is intended to improve connectivity between communities.
Transport infrastructure is another major focus. Improvements along the Abuja–Makurdi and Keffi–Makurdi corridors, alongside the Lafia bypass, are expected to improve movement between the Federal Capital Territory and North-Central states. The Lafia bypass has reportedly reduced travel through the town from roughly 45 minutes to about 15 minutes.
Nasarawa is also investing in urban infrastructure, including the Mararaba flyover and a flyover at Total Junction in Keffi. The Mararaba project, valued at ₦44 billion, is expected to improve traffic flow along the Abuja–Keffi corridor.
For the real estate sector, these improvements could create new development opportunities. Better roads and connectivity can make previously less-accessible areas more attractive for residential, commercial and industrial development, particularly around the Abuja–Keffi corridor. However, sustainable property growth will also depend on electricity, water, drainage, security and effective urban planning.
The states are also investing beyond transport infrastructure. Nasarawa is developing agricultural and lithium-processing projects, while Benue is pursuing industrial and agricultural value-chain investments. If these projects achieve sustained operations, they could generate additional demand for housing, warehouses, logistics facilities and commercial properties.
The developments illustrate how increased public revenue can influence regional property markets. For investors and developers, the key question will be whether infrastructure spending translates into sustained economic activity and better living conditions rather than short-term increases in land values.
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