Otti presents 2025 budget of N750 billion to State Assembly for consideration
Ogbonnaya Ikokwu, Umuahia
Abia State Governor, Alex Otti has presented a total budget of seven hundred and fifty billion, two hundred and eighty two million, two hundred thousand naira only (N750, 282, 200, 000.00) for 2025 fiscal year to the Abia State House of Assembly for considerations.
A total of sum of N611.7 billion, representing 82% of the budget is for capital expenditure and N138.6 billion representing 18% of the budget is for recurrent expenditure while the figure represents about 30% increase in the 2024 budget which was N523 billion.
Presenting the budget estimate at the chambers of the State House of Assembly which is tagged “Budget of Sustained Momentum” Governor Alex Otti said his goverment took into account, major economic headwinds such as inflation and exchange rate instability which have dealt harshly on fiscal plans.
Gov. Otti, who said that he has been on track to meet up with the expectations of the people highlighted various achievements made within the 2024 fiscal and assured of more in the coming year.
He disclosed that he has earmarked N13 billion for the setting up of agro-industrial processing zones in 3 local government areas of the State namely — Bende, Ukwa and Umunneochi and budgeted N55 billion for various on-going and new road projects in the 2025 financial year which cuts across the 17 LGAs, adding that provisions have been made 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.
According to governor Otti, N4 billion has been budgeted for the revamping and reticulation of 47km pipeline for the Umuahia Regional Water Scheme while health and education sectors maintains 35% of the budgetary outlay with 15% going to the health sector and 20 to education.
He further said,
“The draft of 2025 budget has been comprehensively put together to capture the most important development priorities of our people.
“This budget has been prepared with the active input of Abians who participated at the various citizens’ engagement sessions put together by the State Ministry of Budget and Planning to share their expectations as individuals and groups.
“We project an increase in the State’s internally generated revenue (IGR) collection by 213% to N100.6 billion, a 96% rise in statutory allocation to N183.4 billion, 55% increase in grants to N25.5 billion and 35% rise in VAT to N55.1 billion. We shall finance the balance of N364.1 billion, representing about 51% of the total envelope through borrowing from domestic and multilateral channels.
The governor who said that no Kobo has been borrowed so far assured that goverment would borrow when necessary to finance projects.
“This Administration, as I had earlier mentioned, has shown great discipline in the management of our collective resources. We shall do better in the coming year to create an all-inclusive growth model
“Mr Speaker, I am pleased to report that for the 2024 fiscal year, no funds has been borrowed till date but instead, we have taken steps to pay off old debts, while maintaining zero indebtedness to contractors.
“I may have to add at this point, as I did last year, that we shall not borrow a penny to finance recurrent expenditures. All borrowing shall happen only when absolutely necessary and shall be deployed for the execution of projects that will ultimately repay the loans.”
Responding, the Speaker Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa appreciated the governor ‘s budget presentation which he said would sustain the infrastructural development of the state among others, assured of the support of the House towards achieving his goals in the 2025 budget.