“Budget of Sustained Momentum” prioritizes capital projects and revenue growth
Governor Alex Otti has presented the 2025 Appropriation Bill, valued at N750 billion, to the Abia State House of Assembly for review and approval.
Dubbed the “Budget of Sustained Momentum,” the proposal focuses on capital expenditure, which takes N611.7 billion (82%) of the total, leaving N138.6 billion (18%) for recurrent spending. This marks a 30% increase from the 2024 budget of N523 billion.
Governor Otti stated that the budget aims to build on his administration’s accomplishments and outlined key allocations:
- Agro-Industrial Processing Zones: N13 billion for establishing zones in Bende, Ukwa, and Umunneochi local government areas.
- Road Projects: N55 billion for ongoing and new road construction across all 17 LGAs, including 170 kilometers of rural roads (10 kilometers per LGA).
- Education and Health: Retaining 20% and 15% allocations, respectively, from the 2024 budget.
- Umuahia Water Scheme: N4 billion to rehabilitate and expand the 47-kilometer pipeline system.
Governor Otti also revealed bold revenue targets:
- A 213% surge in 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.
- A 35% boost in VAT revenue to N55.1 billion.
To cover the remaining N364.1 billion—51% of the total—borrowing will be undertaken but restricted to developmental projects. The Governor assured that the state maintained prudent borrowing practices in 2024 and would continue to do so.
“For the 2024 fiscal year, no funds have been borrowed to date. Instead, we have taken steps to pay off old debts while maintaining zero indebtedness to contractors. Borrowing shall only occur when absolutely necessary and will be used for projects that can repay the loans,” Governor Otti explained.
The Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, commended the Governor for his resource management and infrastructure initiatives. He pledged the Assembly’s support, promising a thorough and timely review of the proposed budget.
