Abia State Governor, Dr Alex Otti has presented a budget of Seven Hundred and Fifty Billion, Two Hundred and Eighty-Two Million, Two Hundred Thousand Naira only (N750, 282, 200, 000.00) for the 2025 fiscal year to the State House of Assembly for consideration.
Christened Budget of Sustained Momentum, the budget allocated N611.7 billion, representing 82% of capital expenditure while N138.6 billion representing 18% of the budget is for recurrent expenditure. The total budget represents about a 30% increase from the 2024 budget which was N523 billion.
Presenting the budget estimate at the floor of the Assembly, Governor Otti said his government took into account, the prevailing harsh fiscal and economic headwinds such as inflation and exchange rate instability.
He said that with the 2024 fiscal provisions he had met the expectations of the people and promised to do more in the coming year.
The Governor disclosed that he has earmarked N13 billion to establish agro-industrial processing zones in 3 local government areas of the State namely — Bende, Ukwa and Umunneochi even as he budgeted N55 billion for various ongoing and new road projects in the 2025 financial year.
According to him, provisions have been made for the construction of 170 kilometres of rural roads across the 17 LGAs of the State, with a target of 10 kilometres per local government.
Otti also allocated N4 billion to revamping and reticulation of the 47km pipeline for the Umuahia Regional Water Scheme while health and education got 15% and 20% respectively.
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 N100.6 billion, a 96% rise in statutory allocation to N183.4 billion, a 55% increase in grants to N25.5 billion and a 35% rise in VAT to N55.1 billion. We shall finance the balance of N364.1 billion, representing about 51% of the total envelope through borrowing from domestic and multilateral channels.”
The Governor explained that the government has maintained strict fiscal discipline which is the reason he has not borrowed to fund any project.
“Mr Speaker, I am pleased to report that for the 2024 fiscal year, no funds have been borrowed till 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 absolutely necessary and shall be deployed for the execution of projects that will ultimately repay the loans.”
Responding, the Speaker, Rt. Hon. Emmanuel Emeruwa expressed hope that the 2025 budget would sustain the momentum of infrastructural development and assured of support and speedy consideration.
