Experts in the transportation industry in Nigeria have condemned the allocation of less than one per cent of the country’s total budget to the Ministry of Transport, saying the continued relegation of the sector by the Federal Government may affect its growth.

In 2025, the government earmarked just N256.73 billion to the ministry out of the N54.99 trillion, representing less than 0.5 per cent of the total budget.

The Minister of Transport, Saidu Alkali, at the National Assembly last week, lamented that the lean allocation and funding shortfall led to the rollover of about 70 per cent of its projects in the past year.

Also, for the 2026 appropriation bill currently before the National Assembly for consideration, less than one per cent of the total budget is allocated to the ministry.
The ministry is allocated N432.23 billion in the 2026 appropriation, representing just 0.743 per cent of the total N58.18 trillion.

Commenting on the issue, a professor of transport planning and policy, Samuel Odewumi, described the underfunding trend as sad.

Reacting to media reports detailing the funding shortfall and rollover of more than 70 per cent of the ministry’s capital budget in 2025, Odewumi warned that chronic underfunding of transport infrastructure continues to undermine Nigeria’s economic performance.

Odewumi, who is currently the Acting Vice-Chancellor of the University of Uyo, argued that transport remains the backbone of productive activity, trade and mobility and should not be treated as a secondary concern in national budgeting.

He noted that a major policy misconception had persisted in government budgeting over the years, where heavy allocations to the Ministry of Works are assumed to compensate for limited funding to the transport ministry.

“What drives the economy is transportation. Is it surprising that the efforts of governments on the economy are not yielding results?” he asked.

“It must be mentioned that because the Ministry of Works is deemed to be taking a huge chunk of the federal budget, there is the mistaken assumption that it is adequately funded; the Ministry of Transportation does not require so much. This is a fallacy,” he said.

He said road construction alone cannot substitute for an unfunded transport ministry whose mandate is to coordinate the entire transport system.

“The role of the Ministry of Transportation as the coordinator of the transport system cannot be replaced by mere funding of road construction through the Ministry of Works,” he maintained.

He added that without strategic investment in transport planning, regulation and multimodal integration, Nigeria would continue to face inefficiencies that raise business costs, weaken competitiveness and slow economic growth.

Also speaking on the issue, an associate professor of marketing at Keele University, the United Kingdom, Dr Emmanuel Mogaji, said transport budget shortfalls have consequences that extend far beyond delayed roadworks or stalled rail projects.

He argued that transport should be viewed as a service ecosystem, where sustained underfunding weakens not only physical infrastructure, but also research capacity, governance quality and public trust.

“Transport funding is often discussed in terms of concrete and steel, but the real impact of underfunding is systemic.

“When a transport ministry receives only a small proportion of its approved allocation, the effects ripple across infrastructure delivery, knowledge generation and the everyday experience of users,” he said.

According to Mogaji, infrastructure development largely depends on predictable funding cycles.

He noted that when allocations are drastically reduced or released late, projects are suspended mid-way, while costs continue to rise and existing assets deteriorate rapidly.

“What we see in practice is a shift from strategic investment to firefighting. Governments end up spending more over time on emergency repairs, while citizens pay the price through congestion, safety risks, unreliable services and longer travel times,” he added.

He noted that such outcomes represent poor value for money, as inconsistent funding undermines both efficiency and long-term planning.

Mogaji warned that transport research and development is often the first casualty of fiscal pressure, despite its importance to long-term system performance.

According to Mogaji, reduced budgets often translate into poorer service reliability, cost transfers to commuters and compromised safety standards.

From a governance perspective, Mogaji stressed that limited funding heightens, rather than diminishes, the need for accountability.
He pointed out that transparent reporting, measurable performance indicators and independent oversight become even more critical under fiscal pressure.

Mogaji emphasised the importance of clear communication during periods of budget strain.
“Silence or vague statements create uncertainty and mistrust. Reassurance does not come from over-promising, it comes from explaining constraints honestly, demonstrating prudent use of available funds as well as engaging researchers, operators and users in co-producing solutions,” he stressed.

He said even with limited resources, governments could maintain trust by signalling a credible roadmap for future investment when fiscal conditions improve.

Besides, a professor of transport management and former dean of the School of Management Technology, Federal University of Technology, Owerri, Callistus Ibe, said consistent low budgetary allocation to the sector would have a negative impact on capital projects.

This, he added, would cause delayed transportation development and uncoordinated growth.