Abia Governor Otti Outlines Key Projects In 2025 Budget Proposal

Abia Governor Otti Outlines Key Projects In 2025 Budget ProposalGovernor Alex Otti of Abia State has presented a proposed budget of ₦750 billion for the 2025 fiscal year to the state House of Assembly for review and approval. This budget represents a significant increase of about 30% from the ₦523 billion allocated for the 2024 fiscal year.....KINDLY READ THE FULL STORY HERE▶

The proposed budget allocates ₦611.7 billion, or 82%, for capital expenditures, while ₦138.6 billion (18%) is earmarked for recurrent spending. Dubbed the “Budget of Sustained Momentum,” the proposal reflects the administration’s efforts to address economic challenges such as inflation and fluctuating exchange rates that have impacted fiscal planning.

During the budget presentation at the state House of Assembly, Governor Otti highlighted his administration’s progress over the past year and reaffirmed his commitment to continuing this momentum in 2025. Key allocations in the budget include ₦13 billion for the development of agro-industrial processing zones in Bende, Ukwa, and Umunneochi local government areas. Additionally, ₦55 billion has been set aside for road infrastructure, including the construction of 170 kilometers of rural roads across the 17 local government areas of the state.

Otti also noted that ₦4 billion would be allocated for the refurbishment and extension of a 47-kilometre pipeline as part of the Umuahia Regional Water Scheme, aimed at improving water supply in the region. The health and education sectors are set to receive a combined total of 35% of the budget, with 15% allocated to health and 20% to education, reflecting the state’s commitment to human capital development.

In terms of revenue generation, Governor Otti projected a significant increase in the state’s internally generated revenue (IGR), aiming for a 213% increase to ₦100.6 billion. The budget also anticipates a 96% rise in statutory allocations to ₦183.4 billion, a 55% increase in grants to ₦25.5 billion, and a 35% rise in VAT to ₦55.1 billion. To finance the remaining ₦364.1 billion (about 51% of the budget), the state plans to borrow from domestic and multilateral sources, although Otti emphasized that borrowing would be done responsibly and exclusively for capital projects.

The governor also reassured the House that, so far, no funds had been borrowed for the 2024 fiscal year, and steps had been taken to pay off old debts and clear arrears to contractors. He reaffirmed that borrowing would only be undertaken for capital projects that would generate returns to repay the loans, ensuring fiscal responsibility.

In response, the Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, praised the governor for the well-structured budget and reiterated the Assembly’s commitment to supporting the state’s infrastructural development and achieving the goals outlined in the 2025 budget.

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