Governor Alex Otti Presents N750 Billion 2025 Budget To Abia State Assembly

Abia State Governor, Alex Otti, has unveiled a proposed budget of N750 billion for the 2025 fiscal year, tagged the “Budget of Sustained Momentum.” The budget, presented to the state House of Assembly, reflects a 30% increase from the 2024 budget of N523 billion, with a focus on infrastructure, rural development, and economic revitalization.

Budget Breakdown

•Capital Expenditure: N611.7 billion (82% of the budget).

•Recurrent Expenditure: N138.6 billion (18% of the budget).

Governor Otti emphasized that the allocation prioritizes development projects while maintaining fiscal discipline, even in the face of economic challenges such as inflation and exchange rate fluctuations.

Key Allocations

1.Infrastructure Development:

•Road Projects: N55 billion allocated for ongoing and new road projects across the state’s 17 local government areas. This includes the construction of 170 kilometers of rural roads, with a target of 10 kilometers per LGA.

•Water Supply: N4 billion set aside for revamping and reticulating a 47-kilometer pipeline for the Umuahia Regional Water Scheme.

2.Agro-Industrial Development:

•N13 billion earmarked for establishing agro-industrial processing zones in Bende, Ukwa, and Umunneochi LGAs to boost agricultural productivity and value addition.

3.Health and Education:

•35% of the budget allocated to these sectors:

•Education: 20%.

•Health: 15%.

Revenue Projections

The state projects significant growth in revenue streams for 2025:

•Internally Generated Revenue (IGR): Expected to rise by 213% to N100.6 billion.

•Statutory Allocations: Estimated at N183.4 billion, a 96% increase.

•Grants: Forecasted to grow by 55% to N25.5 billion.

•VAT: Anticipated to increase by 35% to N55.1 billion.

To cover the remaining N364.1 billion (51% of the total budget), the government plans to borrow from domestic and multilateral channels but assured citizens that such borrowings would strictly finance capital projects capable of repaying the loans.

Fiscal Discipline and Debt Management

Governor Otti highlighted his administration’s commitment to fiscal prudence:

•No loans were taken in the 2024 fiscal year.

•Efforts have been made to pay off old debts.

•No borrowing will be used to finance recurrent expenditures, maintaining a focus on funding productive projects.

“This administration has shown great discipline in the management of our collective resources. All borrowing shall happen only when necessary and shall be deployed for projects that will ultimately repay the loans,” Otti assured.

Legislative Support

The Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, commended the governor’s detailed and development-focused budget. He assured the legislature’s full support to ensure the successful implementation of the 2025 fiscal plan, which he said aligns with the state’s infrastructure and economic development goals.

Conclusion

The proposed 2025 budget reflects Governor Otti’s commitment to driving sustainable growth, addressing infrastructural deficits, and boosting economic development in Abia State. With significant investments in health, education, and agro-industrial development, the administration aims to create an inclusive growth model that improves the livelihoods of citizens across the state.