Abia State Governor, Dr. Alex Otti has presented a proposed budget of N750, 282, 200, 000.00 for for the 2025 fiscal year to the Abia House of Assembly.
Tagged the “Budget of Sustained Momentum,” the proposed figure represents a 30% increase from the 2024 budget.
Speaking at the Assembly Complex in Umuahia on Tuesday, Otti outlined the State’s plan to navigate prevailing economic challenges such as inflation and exchange rate volatility.
He expressed optimism for a more stable economic environment in 2025, while emphasizing the State Government’s focus on strategic initiatives to drive sustainable development.
Governor Otti announced that 82% (N611.7 billion) of the budget would be allocated to capital projects, while 18% (N138.6 billion) would cover recurrent expenditures, including personnel costs, social benefits, overheads, and debt servicing.
“We have taken into account, major economic headwinds such as inflation and exchange rate instability, two complex subjects that have dealt very harsh blows to our fiscal plans and proposals.
“At any rate, we remain optimistic that the economic environment will be more stable in the new year even as we work hard to control the variables that are within our powers.
“In the 2025 financial year, N611.7 billion, representing 82 per cent of the entire budget outlay, will be channelled into capital projects to continue to drive the long-term socioeconomic transformation of Abia.
“This is to build on the momentum that had already been recorded in the last 18 months since we assumed office.
“Furthermore, N138.6 billion representing 18 per cent of the total envelope, shall be channelled into recurrent expenditures to cover personnel cost, social benefits, overhead costs and debt servicing.
“Looking at the figures for 2024, we are raising the size of the proposed capital expenditure for 2025 by 29 per cent while the outlay for recurrent spend is raised by about 34per cent”, he said.
The Governor highlighted plans to invest N13 billion in establishing agro-industrial processing zones in Bende, Ukwa, and Umunneochi LGAs to strengthen the Agricultural sector.
He said over N55 Billion was earmarked for ongoing and new road projects, including the construction of 170 kilometers of rural roads (10 kilometers per LGA). Major road projects include:Umuikaa-Umune-Omoba Road
Port Harcourt Road, Aba (to be completed in Q1 2025), Umuahia-Uzuakoli Road, Ndi Okereke–Arochukwu Road among others.
The Governor said that a combined outlay for the sector would be used for the construction of bridges and new roads, the reconstruction and maintenance of existing road infrastructure in urban and rural communities, and similar projects by the Ministry of Works.
“Some of the landmark road projects captured in the budget document to be laid before this Assembly at the conclusion of my address include the Umuikaa-Umune-Omoba Road, Owerrinta-Umuikaa Road, Ohanze Ntighauzo-Abala Ibeme Akirikaobu Road, Mbala-Umuaku-Ngodo Road, Omuma Road with spur to Old Express, among others.
“We have also made provision 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.
‘In Umuahia, we have made provisions for the rehabilitation and reconstruction of several road projects including the Umueze-agwu-Mbom, Nkata-Amaeke, Ahiaekeokwuta-Bende, Agbo-Umueze, Umueze Mbom, Umuoji, Umuafai-Lodu-Ahiaeke, Amauzukwu-Mbom Roads, and others.
“The New Year will also see to the completion of many of our signature road projects with the most prominent being Port Harcourt Road Aba, which will be completed in the first quarter of 2025.
“The Umuahia-Uzuakoli Road, Ndi Okereke – Arochukwu Road and others will also be due for completion within the new year”, he noted.
According to the Governor, N4 billion will be spent on the Umuahia Regional Water Scheme to revamp and reticulate a 47-kilometer pipeline, to provide potable water for residents.
“The highlights of the projects to be executed with the passage of this budget include the rehabilitation and supply of equipment to 4 General Hospitals across the State for N13 billion.
“”Also, N9 billion will go into the purchase of Medical Equipment for various Health Facilities, N8.6 billion will be channelled into the construction of the permanent site of Abia State College of Health Science and Management Technology, Aba.
“Furthermore, N5 billion will be used for construction projects at the new College of Nursing Sciences at the Umunneato General Hospital, while another N3 billion will go into the construction of classroom blocks at the School of Nursing and Midwifery Amachara”, The Gov said.
Governor Otti who emphasized that Education remains at the centre of his rebuilding agenda, expressed resolve to invest massively in all frontiers of learning to make Abia children competitive and ready for the demands of the new world.
“In keeping with the determination of the Administration to make the learning environment safe for the pupils and their teachers, we have earmarked N29.5 billion for the construction of perimeter fencing in 262 public schools.
“This will not just keep criminals and marauders away from the schools, it will also curb the menace of appropriation of school land by unscrupulous individuals.
“Also captured in the 2025 draft budget is a proposal to spend N14. 6 billion on the construction of reading rooms and libraries across the 184 wards in the State.
“This initiative is projected to revive the reading culture and encourage our people to discover the treasure in books,” he said.
Governor Otti while pointing out that the budget was prepared with the active input of the people of Abia at the various citizens’ engagement sessions organized by the State Ministry of Budget and Planning, said that the budget had been comprehensively put together to capture the most important development priorities of the people of Abia.
The Governor disclosed that the State Government plans to fund the budget through increased internally generated revenue, statutory allocation, grants, value added tax and borrowing from domestic and multilateral channels.
“We project an increase in the State’s Internally Generated Revenue (IGR) collection by 213per cent to N100.6 billion, a 96 per cent rise in statutory allocation to N183.4 billion, 55per cent increase in grants to N25.5 billion and 35 per cent rise in VAT to N55.1 billion.
“We shall finance the balance of N364.1 billion, representing about 51per cent of the total envelope through borrowing from domestic and multilateral channels”, he said.
Governor Otti stated that the Government did not borrow funds in the past fiscal year to finance recurrent expenditures in the State’s budget, adding that borrowing shall happen only when absolutely necessary and would be deployed for the execution of projects that will ultimately repay the loans.
He said that a total of N18.9 billion had been earmarked for social benefits in the 2025 fiscal year.
“We shall use this sum to cater for the most economically vulnerable groups in our communities.
“This will be used to provide structured support to individuals and families in great need as we work to build a society where no one or group is left behind,”Otti said.
He restated his administration’s commitment to sustain its efforts in creating an all-inclusive growth model for the state and urged citizens to continually support government by paying their taxes and Satutory Fees.
Responding, the Speaker of the Assembly, Chief Emmanuel Emeruwa, said that the developmental milestones recorded in the past year indicates that the budget of 2024 was
meticulously appropriated and executed.
Emeruwa said that the 2025 budget shows that the Government had adopted a strategic approach towards sustaining development in Abia, with 82 per cent allocated to capital expenditure and 18 per cent to recurrent.
“The Governor is taking the State to greater heights in infrastructural development and transforming the state into an investors haven to sustain the state’s economy.
‘We assure you that we will always cooperate with the eyxecutive arm of Government in the execution of the mandate from the citizens to move the state forward”, he said.
