Gov Otti presents ₦1.016trn 2026 budget, allocates 80% to capital projects

Abia State Governor, Dr Alex Otti, on Tuesday presented a ₦1.016 trillion budget estimate for the 2026 fiscal year to the Abia State House of Assembly, proposing a spending plan heavily tilted toward capital investments.

The 2026 proposal, tagged “Budget of Acceleration and New Possibilities,” represents a 13 percent increase from the 2025 budget of ₦811.8 billion. A breakdown shows that capital expenditure accounts for 80 percent of the total outlay, while ₦204.41 billion, or 20 percent, is earmarked for recurrent expenditure.

According to the governor, the capital component – ₦811.8 billion – marks a significant 32 percent rise from the ₦726.4 billion allocated to capital projects in 2025. Education and health received priority placements with 20 percent and 15 percent of the budget respectively, amounting to 35 percent combined.

Presenting the proposal, Dr Otti said the budget reflects the administration’s ambition to drive rapid socio-economic growth through sustained investment in infrastructure, social services, security and other critical sectors. He added that the 2026 fiscal plan is built on conservative projections informed by current economic realities and credible financial forecasts.

“Conversely, the size of the envelope for recurrent expenditure has been raised by 33 percent from last year’s ₦136 billion,” the governor noted. “The increase is to support critical day-to-day administrative functions and enable us meet obligations to personnel, especially with the addition of thousands of new employees to the payroll.”

Otti reaffirmed his administration’s commitment to aggressive road development, announcing an allocation of ₦169.3 billion, representing 16.7 percent of the total budget for road construction, reconstruction, rehabilitation and maintenance.

He also projected a rise in the state’s internally generated revenue (IGR) to ₦223.4 billion in 2026, adding that the goal is for all recurrent expenditure to be fully funded from IGR, while external financing will be channelled strictly into infrastructure. He restated his administration’s borrowing policy: “We shall borrow only when necessary, and such funds shall be deployed solely for projects capable of liquidating the loans in the medium to long term.”

The governor thanked the Speaker and members of the House of Assembly for their cooperation and expressed gratitude to Abians for their continued support.

In his response, Speaker Emmanuel Emeruwa commended Governor Otti for his prudent fiscal management and development strides. He assured that the House would give the appropriation bill accelerated consideration.