Abia State Governor, Alex Otti, on Tuesday presented a ₦1.016 trillion Appropriation Bill for the 2026 fiscal year to the State House of Assembly.
Presenting the budget — christened “Budget of Acceleration and New Possibilities” — at the Assembly complex in Umuahia, Otti said the proposal represents a 13 per cent increase from the 2025 appropriation, which stood at ₦750.28 billion.
He said the budget was designed to fast-track infrastructure expansion, boost social services, and deepen ongoing reforms across the state.
Otti allocated ₦811.8 billion — 80 per cent of the total outlay — to capital projects, while ₦204.4 billion (20 per cent) was earmarked for recurrent expenditure.
He explained that the capital vote rose by 32 per cent from ₦726.4 billion in 2025, while recurrent spending increased by 33 per cent to support daily operations and new personnel.
According to the governor, 20 per cent of the budget (₦203.2 billion) was dedicated to the education sector. Of this, ₦150.4 billion would fund salaries for at least 15,000 teachers and new school infrastructure.
Otti announced plans to build 17 model primary and secondary schools, three technical colleges, staff quarters, and more than 100 ICT laboratories.
Tertiary institutions would receive ₦52.8 billion for salaries and new facilities.
He allocated ₦149.7 billion — 15 per cent of the budget — to the health sector, covering new equipment for Abia State University Teaching Hospital, Aba, upgrades in 23 facilities, and the renovation of seven general hospitals.
The governor earmarked ₦169.3 billion (16.7 per cent) for road construction and rehabilitation, listing the Umuahia–Ikot Ekpene, Ahiaeke–Okwuta–Bende and Umuahia–Umueze–Agwu roads among the priority projects.
The transport sector received ₦11.1 billion, with ₦6 billion allocated for 80 additional electric buses as well as the completion of transport terminals and bus shelters.
Otti said over ₦229 billion was set aside for agriculture, entrepreneurship, youth development, sports, ICT, women’s empowerment, housing, environment, and urban renewal.
He projected the state’s internally generated revenue (IGR) to reach ₦223.4 billion in 2026, up from the 2025 target of about ₦100 billion.
All recurrent expenses, he said, would be funded from the IGR.
He forecast ₦83.2 billion from FAAC, ₦67.1 billion from VAT, ₦26.5 billion from grants, and ₦168 billion from other federal sources — putting the total revenue projection at ₦607.2 billion.
Otti put the budget deficit at ₦409 billion (40 per cent of the budget), adding that it would be financed through concessionary loans strictly for capital projects.
He emphasised that his administration would borrow only when necessary and would not use loans to finance recurrent expenditure.
He urged the Assembly to give the draft budget swift consideration, describing it as critical to sustaining the state’s development trajectory.
Responding, the Speaker, Emmanuel Emeruwa, said the state had inherited a deep fiscal hole in 2023, but the present administration was steadily restoring stability.
Emeruwa said the 2026 budget size reflected growing responsibilities and expanding development needs across the state.
He noted that government revenue projection stood at over ₦600 billion, with no deficit or record of new borrowings — a statement that appeared to contradict the governor’s earlier deficit estimate.
The Speaker commended the governor for prudent fiscal management and urged continued discipline in budget execution.
He assured that the Assembly would thoroughly review the estimates and support measures that benefit the state.
