Governor Alex Otti Proposes ₦750 Billion Budget for 2025 Fiscal Year.

Governor Alex Otti of Abia State has submitted a proposed budget of ₦750 billion for the 2025 fiscal year to the state House of Assembly for review and approval. This budget reflects a notable increase of approximately 30% from the previous year’s budget of ₦523 billion.

In his presentation, titled “Budget of Sustained Momentum,” Otti allocated ₦611.7 billion, or 82% of the total budget, for capital expenditures, while ₦138.6 billion, representing 18%, is earmarked for recurrent expenditures. The governor acknowledged the significant economic challenges facing the state, including inflation and fluctuating exchange rates, which have impacted fiscal strategies.

Otti highlighted several key initiatives within the proposed budget. Notably, ₦13 billion is designated for the establishment of agro-industrial processing zones in the local government areas of Bende, Ukwa, and Umunneochi. Additionally, ₦55 billion is allocated for ongoing and new road projects, with plans to construct 170 kilometers of rural roads across all 17 local government areas. Furthermore, ₦4 billion is set aside for the refurbishment and reticulation of a 47-kilometer pipeline for the Umuahia Regional Water Scheme.

The health and education sectors are prioritized, with a combined total of 35% of the budget allocated—15% for health and 20% for education. Otti emphasized that the budget was developed with significant input from the citizens of Abia State, who participated in various engagement sessions.

In terms of revenue projections, the governor anticipates a 213% increase in the state’s internally generated revenue (IGR), alongside substantial rises in statutory allocations, grants, and Value Added Tax (VAT). To finance the remaining ₦364.1 billion, which constitutes about 51% of the budget, the administration plans to utilize borrowing from domestic and multilateral channels, ensuring that all borrowing is strictly for project execution.

Governor Otti reassured the assembly that no funds had been borrowed to date and that his administration remains committed to fiscal discipline. He reiterated that borrowing would only occur when necessary and exclusively for projects that would generate returns.

In response, the Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, commended the governor’s budget proposal, affirming the House’s support in achieving the outlined goals for the 2025 fiscal year. The proposed budget signifies a strategic approach to addressing the developmental needs of Abia State while ensuring financial prudence.