Otti presents N750 billion naira estimated 2025 budget to State Assembly for approval.

Alex Otti, Abia state Governor has presented  budget proposal of seven hundred and fifty billion, two hundred and eighty two million, two hundred thousand naira only (N750, 282, 200, 000.00) for the 2025 financial year.
Otti while presenting the budget Estimate to the Abia State House of Assembly said this year’s figure represents about 30% increase from the 2024 figures of N567billion which indicates the scope of progressive aspirations of his administration.
” We have taken into account, major economic headwinds such as inflation and exchange rate instability — two complex subjects that have dealt very harsh blows to our fiscal plans and proposals. At any rate, we remain optimistic that the economic environment will be more stable in the new year even as we work hard to control the variables that are within our powers”said Otti.
He said In the 2025 financial year, N611.7 billion, representing 82% of the entire budget outlay, will be channelled into capital projects to continue to drive the long-term socioeconomic transformation of the State, building on the momentum that had already been recorded in the last 18 months since assumption of office.
Of the total Budget estimate N138.6 billion ,representing 18% of the total envelope, is for recurrent expenditures to cover personnel cost, social benefits, overhead costs and debt servicing.
He disclosed that looking at the figures for 2024, “we are raising the size of the proposed capital expenditure for 2025 by 29% while the outlay for recurrent spend is raised by about 34%.

“Mr Speaker, we have set out to make another bold statement of our intent to climb to the top of socioeconomic development ladder with some of the most important capital projects that had been captured for execution in the 2025 budget. We have earmarked N13 billion for the setting up of agro-industrial processing zones in 3 local government areas of the State namely — Bende, Ukwa and Umunneochi. These projects shall signpost our game plan for the agricultural sector and the commitment to leverage agriculture to drive important economic outcomes such as job creation, wealth generation and foreign currency denominated receipts.

“We have strategically budgeted sums in excess of N55 billion for various on-going and new road projects in the 2025 financial year. The road projects will cut across the 17 LGAs. The combined outlay for the sector will be used to pay for the construction of bridges and new roads, and the reconstruction and maintenance of existing road infrastructure in the urban and rural communities, and similar project undertakings by the State Ministry of Works.…
“Mr Speaker, Honourable Members, recall that a very important promise we made to Ndi Abia on the campaign trail was the provision of potable water to residential homes and communities in the State. Today, I am glad to report that we have captured a N4 billion outlay which will on approval by this Honourable House, be channelled into the revamping and reticulation of 47km pipeline for the Umuahia Regional Water Scheme.
” Just like last year, health and education sectors will receive about 35% of the budgetary outlay with 15% of the entire envelope going to the health sector, basic and secondary education get 14.63% while tertiary education will receive 5.42%.”
The Abia Chief Executive disclosed that the highlights of the projects to be executed with the passage of the budget as presented include the rehabilitation and supply of equipment to 4 general hospitals across the State for N13 billion,  N9 billion will go into the purchase of medical equipment for various health facilities, N8.6 billion will be channelled into the construction of the permanent site of the Abia State College of Health Science and Management Technology Aba,  N5 billion will be used for construction projects at the new College of Nursing Sciences at the Umunneato General Hospital while another N3 billion will go into the construction of classroom blocks at the School of Nursing and Midwifery Amachara.

“In keeping with the determination of the Administration to make the learning environment safe for the pupils and their teachers, we have earmarked N29.5 billion for the construction of perimeter fencing in 262 schools across the State, this will not just keep criminals and marauders away from the schools, it will also curb the menace of appropriation of school land by unscrupulous individuals.
Also captured in the 2025 draft budget is a proposal to spend N14. 6 billion on the construction of reading rooms and libraries across the 184 wards in the State. This initiative is projected to revive the reading culture and encourage our people to discover the treasure in books” Otti further said.

He said, the draft of 2025 budget has been comprehensively put together to capture the most important development priorities Abians.

He pointed out that the elements of the draft budget are anchored on a set of slightly optimistic fundamentals, using 2024 figures as our base. 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. 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. Mr Speaker, I am pleased to report that for the 2024 fiscal year, no funds has been borrowed till date but instead, we have taken steps to pay off old debts, while maintaining zero indebtedness to contractors.

“Mr Speaker, let me conclude by informing this Honourable House that we have titled the document I shall lay before you, a “Budget of Sustained Momentum” because the key variables have been aggregated to keep us on the right trajectory as we continue the trans-generational race to the summit of the development ladder. I would appeal to our people to keep believing in the potential and promises of this great State.

” Our governance framework is set up to run as a robust partnership model where the Government does its part by creating and sustaining the enabling social and economic superstructures to accelerate social prosperity while the residents and businesses pay their taxes and other statutory fees and levies to the Government as and when due as its share of the prosperity it has helped to create.

“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. In this regard, a total of N18.9 billion has been earmarked for social benefits in the 2025 fiscal year. We shall use this sum to cater for the most economically vulnerable groups in our communities, providing structured support to individuals and families in great need as we work to build a society where no one or group is left behind”the governor added.
Emmanuel Emeruwa, the Speaker of the House of Assembly thanked Otti and promised that members would give all the necessary support to the him to ensure the passage of the Appropriation bill.