Abia State Governor, Alex Otti, has proposed a ₦750 billion budget for the 2025 fiscal year, titled “Budget of Sustained Momentum,” to the state House of Assembly for review and approval. This proposal represents a 30% increase from the ₦523 billion budget allocated for 2024.

Key Highlights of the 2025 Budget

– *Capital vs Recurrent Expenditures:*
– ₦611.7 billion (82%) allocated for capital expenditures.
– ₦138.6 billion (18%) designated for recurrent expenses.

– *Major Development Projects:*
– ₦13 billion to establish agro-industrial processing zones in Bende, Ukwa, and Umunneochi.
– ₦55 billion for ongoing and new road projects across all 17 local government areas, with a target of constructing 170 kilometres of rural roads (10 kilometres per local government).
– ₦4 billion for refurbishing and reticulating a 47-kilometre pipeline for the Umuahia Regional Water Scheme.

– *Focus on Health & Education:*
– The two sectors will receive a combined 35% of the total budget.
– Health: 15% allocation.
– Education: 20% allocation.

Revenue & Borrowing Plans

Governor Otti shared optimistic projections to boost the state’s internally generated revenue (IGR):

– A 213% increase to ₦100.6 billion.
– Statutory allocations projected at ₦183.4 billion, a 96% rise.
– Grants expected to rise by 55% to ₦25.5 billion.
– VAT revenue projected to hit ₦55.1 billion (a 35% increase).

Otti added that the balance of ₦364.1 billion (about 51% of the total budget) will be financed through domestic and multilateral borrowing when necessary. However, he reassured that the government has not borrowed to finance recurrent expenditures so far.

Promises & Strategic Goals

Otti highlighted fiscal discipline and sustainable growth as central goals for 2025. He noted efforts to pay off old debts without indebting contractors or increasing the debt burden on the state.

Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, commended the governor’s budget proposal. He emphasized the plan’s potential to support infrastructural development and assured legislative support in achieving its goals.

Governor Otti concluded his presentation by emphasizing citizens’ involvement in shaping the budget. His administration has actively incorporated public input through engagement sessions facilitated by the State Ministry of Budget and Planning.

The 2025 fiscal plan signifies Abia State’s vision for infrastructure, health, and economic growth, focusing on strategic investments and improved revenue generation to build sustainable development.