Business
Otti presents N750.3bn 2025 budget to Abia Assembly, says no funds borrowed till date
Abia State governor, Dr. Alex Otti on Tuesday presented a total budget estimate of N750.3billion only for the services of the state government in the forthcoming 2025 fiscal year to the State House of Assembly for consideration and approval.
A breakdown of the budget shows that a total of sum of N611.7 billion, representing 82% of the budget, is for Capital expenditure, while N138.6 billion, representing 18% of the total budget, is for Recurrent Expenditure.
A cursory look shows that the 2025 total figure represents about 30% increase when compared to that of 2024 year budget, which stood at a N523billion.
Health and Education sectors maintain the highest preference of 35% of the budgetary allocation. Health has 15% , while 20 percent goes to the education sector.
A further look shows that government earmarked N13 billion for the setting up of agro-industrial processing zones in three Local Government Areas of the State, namely — Bende, Ukwa and Umunneochi.
The government also budgeted N55 billion for various ongoing and new road projects in the 2025 financial year, which cut across the 17 LGAs.
Provisions were also 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.
Also N4 billion has been budgeted for the revamping and reticulation of 47km pipeline for the abandoned Umuahia Regional Water Scheme.
Tagged : “Budget of Sustained Momentum”, Governor Alex Otti, while presenting the Budget to the house, explained that in preparing the 2025 budget, his government took into account, major economic headwinds such as inflation and exchange rate instability, which have dealt harshly on fiscal plans.
He said that he has been on track to meet up with the expectations of the people and took time to highlight the various achievements made within the 2024 fiscal year and assured of more in the coming year.
Governor Otti declared: “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 government 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 have 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 after the presentation, 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.
