Abia State Governor, Dr. Alex Otti, on Tuesday presented a N750.28 billion budget for the 2025 fiscal year to the Abia State House of Assembly.
The budget includes N611.7 billion (82%) for capital expenditures and N138.6 billion (18%) for recurrent expenditures, marking a 30% increase from the previous year’s budget of N523 billion.
Presenting the budget, dubbed the “Budget of Sustained Momentum,” Governor Otti acknowledged the challenges posed by inflation and exchange rate instability but reaffirmed his government’s commitment to delivering on its promises.
He highlighted achievements from the 2024 fiscal year and outlined plans for further progress in 2025.
Key allocations include N13 billion for establishing agro-industrial processing zones in Bende, Ukwa, and Umunneochi local governments, and N55 billion for ongoing and new road projects across all 17 local government areas, including the construction of 170 kilometers of rural roads.
Additionally, N4 billion is set aside for the revamping of the Umuahia Regional Water Scheme’s 47km pipeline.
The health and education sectors will receive a combined 35% of the budget, with 15% allocated to health and 20% to education.
Governor Otti also shared projections for a 213% increase in the state’s internally generated revenue (IGR) to N100.6 billion, along with significant rises in statutory allocations, grants, and VAT collections.
The state plans to finance 51% of the budget, approximately N364.1 billion, through domestic and multilateral borrowing.
Governor Otti assured that no borrowing has been undertaken so far for the 2024 fiscal year, with steps taken to pay off previous debts.
He emphasized that any future borrowing would be strictly for project financing and would not be used for recurrent expenditure.
In his response, Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, praised the governor’s budget presentation, stating that it would continue to drive infrastructure development in the state.
He also expressed the Assembly’s full support for the 2025 budget’s implementation.
