The Governor of Abia State, Alex Otti, has submitted a proposed budget of ₦750 billion for the 2025 fiscal year to the state House of Assembly for their review and approval.
Of this total, ₦611.7 billion, which constitutes 82% of the budget, is allocated for capital expenditures, while ₦138.6 billion, or 18%, is designated for recurrent expenditures.
Henzodaily reports that this proposal reflects approximately a 30% increase compared to the 2024 budget, which was set at ₦523 billion.
During the presentation of the budget, titled “Budget of Sustained Momentum,” in the chambers of the state House of Assembly, Otti emphasized that his administration has considered significant economic challenges, including inflation and fluctuations in exchange rates, which have adversely affected fiscal strategies.
Otti expressed his commitment to fulfilling the expectations of the populace, highlighting various accomplishments achieved during the 2024 fiscal year and promising further progress in the upcoming year.
He announced that N13 billion has been allocated for the establishment of agro-industrial processing zones in three local government areas: Bende, Ukwa, and Umunneochi.
Additionally, ₦55 billion has been budgeted for both ongoing and new road projects across all 17 local government areas, with plans to construct 170 kilometres of rural roads, aiming for 10 kilometres per local government.
Furthermore, Otti indicated that ₦4 billion has been set aside for the refurbishment and reticulation of a 47-kilometre pipeline for the Umuahia Regional Water Scheme.
The health and education sectors will receive a combined total of 35% of the budget, with 15% allocated to health and 20% to education.
He further said, “The draft of the 2025 budget has been comprehensively put together to capture the most important development priorities of our people.
“This budget has been prepared with the active input of Abians who participated in the various citizens’ engagement sessions put together by the State Ministry of Budget and Planning to share their expectations as individuals and groups.
“We project an increase in the state’s internally generated revenue (IGR) collection by 213% to ₦100.6bn, a 96% rise in statutory allocation to ₦183.4 lbn, a 55% increase in grants to ₦25.5 bn and a 35% rise in VAT to ₦55.1 billion. We shall finance the balance of ₦364.1 billion, representing about 51% of the total envelope through borrowing from domestic and multilateral channels.”
The governor, who said that no Kobo had been borrowed so far, assured that the government would borrow when necessary to finance projects.
“This Administration, as I had earlier mentioned, has shown great discipline in the management of our collective resources. We shall do better in the coming year to create an all-inclusive growth model.
“Mr Speaker, I am pleased to report that for the 2024 fiscal year, no funds have been borrowed to date but instead, we have taken steps to pay off old debts, while maintaining zero indebtedness to contractors.
“I may have to add at this point, as I did last year, that we shall not borrow a penny to finance recurrent expenditures. All borrowing shall happen only when necessary and shall be deployed for the execution of projects that will ultimately repay the loans,” Governor Otti stated.
Responding, the Speaker Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa commended the governor’s budget presentation, which he said would sustain the infrastructural development of the state, among others, and assured of the support of the House towards achieving his goals in the 2025 budget.