On Tuesday, Abia Governor Dr. Alex Otti presented a proposed budget of N750,282,200,000 for the 2025 fiscal year to the Abia State House of Assembly for review.
This budget allocates N611.7 billion, or 82%, for capital projects, while N138.6 billion, representing 18%, is designated for recurrent expenses. This total reflects a significant increase of approximately 30% compared to the 2024 budget of N523 billion.
Tagging the budget as the “Budget of Sustained Momentum,” Governor Otti noted that his administration has taken into account substantial economic challenges, including rising inflation and fluctuating exchange rates, which have impacted fiscal planning.
Assuring the public of his commitment to meeting their expectations, Governor Otti highlighted various accomplishments achieved within the 2024 fiscal year and promised further advancements in the upcoming year.
He announced a budget allocation of N13 billion for establishing agro-industrial processing zones in the local government areas of Bende, Ukwa, and Umunneochi. Additionally, N55 billion has been allocated for ongoing and new road projects across all 17 local government areas, with provisions for constructing 170 kilometers of rural roads, targeting 10 kilometers per local government.
Furthermore, the governor allocated N4 billion for the refurbishment and reticulation of a 47-kilometer pipeline under the Umuahia Regional Water Scheme. The health and education sectors together account for 35% of the budget, with 15% earmarked for health and 20% for education.
“The 2025 budget draft is meticulously crafted to reflect the pressing development priorities of our citizens,” Governor Otti stated, emphasizing the active involvement of Abians who participated in citizen engagement sessions coordinated by the State Ministry of Budget and Planning.
He projected a remarkable 213% increase in the state’s internally generated revenue (IGR) to N100.6 billion, a 96% rise in statutory allocations to N183.4 billion, a 55% increase in grants to N25.5 billion, and a 35% rise in VAT to N55.1 billion. The remaining N364.1 billion, approximately 51% of the total budget, will be financed through borrowing from domestic and international sources.
Despite the borrowing plans, the governor reassured citizens that no funds have been borrowed thus far and that the government would only seek loans when necessary to support project financing.
