Stephen Ukandu, Umuahia
Abia State Governor, Alex Otti, on Tuesday presented a ₦1,016,228,072,651.99 (one trillion, sixteen billion, two hundred and twenty-eight million, seventy-two thousand, six hundred and fifty-one naira, ninety-nine kobo) appropriation bill for the 2026 fiscal year to the Abia State House of Assembly.
Presenting the proposal, christened “Budget of Acceleration and New Possibilities,” Otti said the administration would prioritise infrastructural development to further open up the state.
“This captures the scale of our ambition to drive rapid socioeconomic growth and sustained development through investments in infrastructural projects, social services, security, and similar outlays that are at the heart of the ongoing transformation of the state,” he said.
The 2026 budget estimate represents a 13% increase from the 2025 budget of ₦750.28 billion.
According to the proposal, ₦811,813,769,862.24 — representing 80% of the total outlay — is earmarked for capital projects, while ₦204,414,302,789.75, or 20%, is proposed for recurrent spending.
The budget also reflects a 32% jump in capital expenditure from the ₦726.4 billion allocated in 2025. Recurrent expenditure similarly rose by 33% from last year’s ₦136 billion.
Otti explained that the rise in recurrent expenditure would enable the administration to “support critical day-to-day administrative functions and effectively meet our obligations to personnel, especially with the addition of thousands of new employees to the payroll.”
The education sector maintained its 20% share of the budget, a position it has held since 2024.
“For the 2026 fiscal year, we shall continue our standing practice of committing 20% of the total budget, amounting to ₦203.2 billion, to the education sector,” the Governor said.
“Of this sum, ₦150.4 billion will go to recurrent expenditures, including the payment of salaries for about 15,000 teachers in our primary and secondary schools, as well as to capital projects. We have made provisions for the construction of 17 model primary and secondary schools and three technical colleges for vocational training programmes.”
He added that ₦169.3 billion, representing 16.7% of capital expenditure, would be dedicated to road construction.
On revenue projections, Otti said the state expects ₦83.2 billion from the Federation Accounts Allocation Committee (FAAC), ₦67.1 billion from VAT collections, ₦26.5 billion from grants and aids, and ₦168 billion from other federal revenue channels and accruals.
He projected an internally generated revenue (IGR) target of ₦223.4 billion, which would be used to service recurrent expenditure.
“Our combined revenue projection from internal and external sources for 2026 is ₦607.2 billion, leaving us with a deficit of ₦409 billion. The deficit, 40% of the entire outlay, shall be sourced from the loan markets at concessionary rates,” he noted.
Otti assured that the budget would be judiciously managed, vowing not to borrow for recurrent expenditure but only for capital projects when necessary.
Responding, the Speaker of the House, Rt. Hon. Emmanuel Emeruwa, commended the Governor for his development strides and prudent financial management. He promised that the budget would receive expeditious consideration and passage.
The Deputy Governor, Engr. Ikechukwu Emetu, and members of the State Executive Council accompanied the Governor to the Assembly.
