Abia State Governor, Alex Otti, has unveiled a proposed budget of N750 billion for the 2025 fiscal year, presenting it to the state House of Assembly for deliberation and approval.
The budget, titled ‘Budget of Sustained Momentum’, allocates N611.7 billion (82%) for capital expenditure and N138.6 billion (18%) for recurrent expenditure.
This figure represents a 30% increase from the 2024 budget, which stood at N523 billion.
While presenting the budget in the Assembly chambers, Otti highlighted the impact of economic challenges, such as inflation and exchange rate fluctuations, on fiscal planning.
He noted that his administration remains committed to meeting the expectations of the people and shared key achievements from the 2024 fiscal year while promising further advancements in the coming year.
The governor revealed plans to invest N13 billion in establishing agro-industrial processing zones across three local government areas—Bende, Ukwa, and Umunneochi.
Additionally, N55 billion has been earmarked for ongoing and new road projects spanning the state’s 17 local government areas.
These include the construction of 170 kilometers of rural roads, with a target of 10 kilometers per local government.
Otti also disclosed a N4 billion allocation for revamping and reticulating a 47-kilometer pipeline for the Umuahia Regional Water Scheme.
He emphasized the prioritization of health and education, which collectively account for 35% of the budget, with 15% dedicated to health and 20% to education.
“The draft of the 2025 budget has been comprehensively put together to capture the most important development priorities of our people,” Otti stated. “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.”
The governor projected significant revenue increases, including a 213% rise in internally generated revenue to N100.6 billion, a 96% increase in statutory allocation to N183.4 billion, a 55% growth in grants to N25.5 billion, and a 35% rise in VAT to N55.1 billion.
He proposed funding the remaining N364.1 billion, about 51% of the total budget, through borrowing from domestic and multilateral sources.
However, Otti assured citizens that borrowing would be strictly limited to necessary projects with high returns.
“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,” he said.
Reflecting on the fiscal discipline observed in 2024, he added, “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.”
Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, commended the governor’s presentation, describing it as a blueprint for sustaining the state’s infrastructural development.
He pledged the Assembly’s full support for the governor’s 2025 budget objectives.
