Abia State Governor, Dr Alex Otti, has presented the proposed 2026 Budget estimate of N1,016,228,072,651.99 (one trillion, sixteen billion, two hundred and twenty-eight million, seventy-two thousand, six hundred- and fifty-one-naira, ninety-nine kobo) to the State House of Assembly for consideration.
The budget, christened “Budget of Acceleration and New Possibilities“, reflects a 13% increase from the 2025 appropriation and is designed to fast-track infrastructural expansion, deepen social services, bolster security and consolidate ongoing economic reforms.
Presenting the budget on the floor of the House in Umuahia on Tuesday, Governor Otti said the proposal captures the scale of his administration’s ambition to drive rapid socioeconomic growth and sustained development.
“This figure represents a 13% increase from the 2025 appropriation numbers and captures the scale of our ambition to drive rapid socioeconomic growth and sustained development through investments in infrastructural projects, social services, security and similar outlays that are at the heart of the on-going transformation of the State”, the Governor stated.
The Governor disclosed that 80% of the entire budget, amounting to N811,813,769,862.24, (eight hundred and eleven billion, eight hundred and thirteen million, seven hundred and sixty nine thousand, eight hundred and sixty two naira, twenty four kobo), has been earmarked for capital expenditure, while N204,414,302,789.75, (two hundred and four billion, four hundred and fourteen million, three hundred and two thousand, seven hundred and eighty nine naira, seventy five kobo) representing 20% of the budget would be committed to recurrent expenditures.
“A total outlay of N811.8 billion for capital projects represents a 32% jump from our 2025 proposal which stood at N726.4billion.
“Conversely, the size of the envelope for recurrent expenditure has been raised by 33% from last year’s figure which stood at N136 billion.
“The increase is to enable us support critical day-to-day administrative functions and effectively meet our obligations to personnel especially with the addition of thousands of new employees to the payroll”, the Governor explained.
Governor Otti who reaffirmed his administration’s commitment to Education, pledged 20 per cent of the budget (N203.2 billion) to the sector.
He explained that N150.4 billion would go into salaries for about 15,000 teachers and the construction of 17 Model Primary and Secondary Schools, three Technical Colleges, Staff quarters and ICT Laboratories in more than 100 public schools.
According to Governor Otti, the Tertiary Education sub-sector is to receive N52.8 billion for staff welfare and the renovation or construction of hostels, lecture theatres and other infrastructure at Abia State University, Ogbonnaya Onu Polytechnic and Abia State College of Education (Technical), Arochukwu.
The Governor announced a N149.7 billion allocation to the Health sector, which would cover life-saving equipments for Abia State University Teaching Hospital and 23 other public health facilities as well as the reconstruction and renovation of seven General Hospital
He revealed that N169.3 billion, representing 16.7 per cent of the budget, has been set aside for extensive road construction, rehabilitation and maintenance under the State Ministry of Works.
Governor Otti further disclosed that the State plans to invest N11.1 billion in the Transport sector, with N6 billion earmarked for the purchase of 80 additional 40-seater electric buses, adding that the first batch of 20 customised electric buses “has been delivered and shall begin operations shortly.”
The Governor stated that over N229 billion has been earmarked for interventions across entrepreneurship development, Agriculture, Sports, ICT, Women and Youth Empowerment, Lands and Housing development, Urban Renewal and Cultural renaissance.
He added that the budget contains a “strategic investment framework to drive job creation and Enterprise growth” through resuscitation of dormant assets and technology-driven initiatives pointing out that his administration’s war against poverty and unemployment remains total.
Governor Otti who announced a 2026 IGR target of N223.4 billion, said that the proposed 2026 Budget estimate is anchored on “conservative estimates” informed by economic trends and improved internally generated revenue (IGR) performance.
“Evidently, moving our annual IGR figures from the region of N20 billion a few years ago to a projected value of about a hundred billion in 2025 speaks to the validity of our theory on one hand and then the wisdom of deploying technology to streamline revenue collections, remittances and reporting.
“For the 2026 fiscal year, we are raising the bar even higher. On the basis of the decent strides recorded in infrastructural development and the leap in investors’ confidence, we project an increase in the State’s IGR portfolio to N223.4 billion”, the Governor said.
He announced that the target for 2026 is that all recurrent expenditures shall be funded from the State’s IGR receipt while what is raised from external sources would be committed strictly to infrastructural development
He listed other expected revenues to include N83.2 billion from the Federation Accounts Allocation Committee (FAAC), N67.1 billion from VAT collections, N26.5 billion in grants and aids, and N168 billion from other federal revenue channels, bringing total projected revenue to N607.2 billion.
“Our combined revenue projection from internal and external sources for 2026 is N607.2 billion leaving us a balance of N409 billion. The deficit, 40% of the entire outlay, shall be sourced from the loan markets at concessionary rates. In line with the fiscal disposition of this administration”, the Governor said.
He emphasised that his administration would not borrow a penny to finance recurrent expenditures, adding that borrowing would be undertaken only for “projects that will ultimately liquidate the loans in medium to long term.
“Not a penny shall be borrowed to finance recurrent expenditures. As I announced on this same podium in 2023 and 2024, we shall borrow only when it is absolutely necessary and such funds shall be deployed only for the execution of projects that will ultimately liquidate the loans in medium to long term.
“This honourable House can be sure of one thing: we shall remain prudent in the management of every penny appropriated by it”, the Governor assured.
He thanked the legislators for their continued support and urged them to careful consider the proposed budget estimate in fulfilment of the collective obligation owed Abians.
Responding, the Speaker of the Abia State House of Assembly, Rt. Hon Emmanuel Emeruwa commended the vision behind the 2025 fiscal proposal, describing it as a forward-looking instrument that aligns with the State’s recovery trajectory and effort to lift the State out of the difficult situation it met in 2023.
Rt. Hon Emeruwa observed that the State’s yearly allocations have continued to grow from 2023 to date, which he said is a sign of the present administration’s ambition and capacity.
He noted that the Legislature remains committed to diligent scrutiny of the budget and assured that the House would give the budget proposal the consideration it deserves.
“We will give this budget the thorough consideration it deserves, as we have always done”, he assured.
