Governor Peter Mbah of Enugu State has presented a record-breaking budget of N971 billion for the 2025 fiscal year to the State House of Assembly.
Dubbed the “Budget of Exponential Growth and Inclusive Prosperity,” the proposal aims to accelerate economic development, with an emphasis on education, infrastructure, and poverty eradication.
The proposed budget includes N837.9 billion for Capital Expenditure (86% of the total budget) and N133.1 billion for Recurrent Expenditure (14% of the budget).
This marks a significant increase from the 2024 budget of N521.5 billion, which consisted of N414.3 billion for Capital Expenditure and N107.2 billion for Recurrent Expenditure.
Mbah emphasized the importance of investing in education, which has received a lion’s share of N320.6 billion, over 33% of the total budget for the second consecutive year.
He noted that education is key to the state’s economic growth and poverty alleviation efforts.
The budget also prioritizes critical infrastructure, such as roads, water supply, energy, and public service modernization, to create a robust foundation for sustainable development.
The governor highlighted the impressive growth in the state’s Internally Generated Revenue (IGR), which surged from N37.4 billion in 2023 to N144.7 billion in September 2024, a 286.2% increase.
This surge is part of the administration’s strategy to reduce dependency on federal allocations and increase local revenue generation.
Mbah further outlined the revenue sources for the 2025 budget, with projected recurrent revenues totaling N692.2 billion.
This includes N509.9 billion from IGR, N48.7 billion from statutory revenue, and N74.9 billion from VAT. The remaining N559 billion in recurrent revenues will be channeled into capital development.
In terms of capital spending, N462 billion will be allocated to the economic sector, which represents 55.1% of the Capital Expenditure, while N345.7 billion (41.2%) will go to the social sector.
The education sector continues to receive the largest share of N320.6 billion to support the governor’s ambition to develop a knowledge-based economy.
Other sectors set to receive significant funding include healthcare, with N45.8 billion earmarked for improving the state’s health services; roads and infrastructure, with N213.1 billion to be spent on key roads across the state; and agriculture, with N82.3 billion dedicated to food production and agro-industrialization.
The transport sector will also see investments, with N41.1 billion allocated for expanding Enugu Air and improving transportation services, including the concessioning of the Akanu Ibiam International Airport and the construction of an international cargo terminal.
The governor also shared an update on the performance of the 2024 budget, noting that the state had achieved an 88% budget performance as of October 2024.
He expressed confidence that the state’s IGR would exceed N200 billion by the end of the year.
The Speaker of the State House of Assembly, Hon. Uchenna Ugwu, assured the governor of the Assembly’s commitment to fast-tracking the passage of the budget to sustain the administration’s development plans.
Mbah remains determined to propel Enugu to a top-three GDP ranking nationally, focusing on inclusive growth and economic self-sufficiency, despite the challenging economic landscape across Nigeria.
