Abia’s budget of sustained momentum as game changer for transformative development
By Emeka Nwosu
The Abia State Governor, Dr. Alex Chioma Otti, last week, presented the 2025 Budget of the State before the State House of Assembly. The budget which was aptly titled “Budget of Sustained Momentum” has a total outlay of Seven Hundred and Fifty Billion, Two Hundred and Eighty Two Million and Two Hundred Naira (N750, 282, 000, 200. This is an increase of 30 percent over the 2023 budget which was Five Hundred and Twenty Three Billion (N523 Billion).
The significant thing is that 82 percent of this total budget, amounting to Six Hundred and Eleven Billion (N611 Billion) is earmarked for capital projects, while only One Hundred and Thirty Eight Billion (N138 Billion), amounting to 18 percent is for recurrent expenditures. This is consistent with the philosophy and commitment of the Otti administration to the total economic and infrastructural transformation of the State.
It will be recalled that 84 percent of the maiden budget of the administration titled “the Budget of New Beginning” was for capital projects. And it was the first time such serious emphasis was being laid on infrastructural development and productive activities rather than on consumption and frivolities.
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In the past, more funds were allocated to recurrent expenditures with little or nothing for the execution of capital projects. The heavy recurrent budgets mainly went into the funding of the fancies and pleasures of those who wielded power in the State. It is therefore no wonder that Abia was for the last 24 years one of the most underdeveloped States in the Federation.
The arrival of Otti on the saddle changed the narrative of bad governance in the State. The 2023 Budget of New Beginning was seen by many political observers as being ambitious, given the fact that the size of the preceding budget under the administration of Okezie Ikpeazu was only N160 Billion, with over 70 percent of that amount going into recurrent expenditures.
The 2024 Budget by Governor Otti was the game changer which dramatically turned Abia into a huge construction yard, with many socially-impactful projects springing up across the length and breadth of the State.
The 2025 Budget is consistent with the big vision of Otti to propel the State to greater heights. A breakdown of the budget shows that the government is laying great emphasis on the social sector as it has planned to spend 35 percent of the total budget outlay on Health and Education. This is quite impressive because a healthy citizenry is a huge asset that would translate into higher productivity and economic growth. On the other hand, education is the key to human capital development. Most societies that have achieved transformation did so through education. It is the potent weapon against poverty, disease and ignorance. An educated society is a society that is socially liberated and economically self-sustaining. It is no wonder that Otti is paying serious attention to this sector.
The Health sector alone is to receive a lion share of 15 percent of the entire budget package. The Education sector, similarly, is also gulping 15 percent of the budget with 14.63 percent allocated to Basic and Secondary Education and 5.42 percent given to Tertiary Education.
Under the Health sector, 4 General Hospitals spread across the three senatorial zones of the State are to be rehabilitated while a brand new College of Nursing Sciences is to be established at Umunneato General Hospital in Bende Local Government Area (LGA).
Within the social sector, the Otti administration has resolved to fix the Umuahia Regional Water Scheme to ensure that water flows again in the State capital. A total sum of N4 Billion has been allocated for the revamping and reticulation of the 47 Km water pipeline. There is no doubt that this would bring a huge relief to the residents of Umuahia and environs who last saw pipe borne water run in the city over 40 years ago. The benefits cannot be over-estimated, given the huge impact it is going to have on individual residents, businesses and government establishments.
Agriculture and Rural Development also received a great boost under the budget. A total of N13 Billion has been earmarked for the setting up of agro-industrial processing centres in Bende, Ukwa and Umunneochi LGAs. In order to ensure farm products are seamlessly evacuated from the farming communities, the government is to construct 170 Km rural roads with each of the 17 LGAs getting 10km of the roads.
Some key ongoing road projects are expected to be completed and commissioned within the first quarter of 2025. The roads include the strategic Port Harcourt road in Aba, the Umuahia-Uzuakoli road and Ndi Okereke-Arochukwu road.
The governor who is an ex-banker and first class Economist would seem to have done his job well in terms of the funding of the budget. The assumptions are based on an enhanced Internally Generated Revenue (IGR) which is expected to bring in N100.6 Billion with an anticipated 213 percent rise from previous IGR, and increased statutory allocation to the tune of N183.4 Billion which represents 96 percent rise from the preceding year. The sum of N25.3 Billion is expected from Grants. The budget balance of N364.1 Billion is expected to be sourced from borrowings. The good news is that the borrowings are not for personnel costs but for capital projects with high capital regenerative value.
With a faithful implementation of the budget, Abia will never be the same again; and Otti would have succeeded in transforming the State to an enviable status. It is indeed a “Budget of Sustained Momentum”.
Emeka Nwosu, PhD, a Public Policy Analyst, writes from Umuahia.
Email: cdnwosu2@gmail.com