The governor allocated N811.8 billion, representing 80 per cent of the total outlay, to capital projects, while recurrent expenditure got N204.4 billion, or 20 per cent of the budget.
Governor Alex Otti of Abia State presented a N1.016 trillion Appropriation Bill for the 2026 fiscal year to the Abia House of Assembly on Tuesday.
Presenting the budget, christened "Budget of Acceleration and New Possibilities", at the assembly complex in Umuahia, Mr Otti said that the proposal represented a 13 per cent rise from the 2025 appropriation, which stood at N750.28 billion.
He said that the budget had been designed to fast-track infrastructure expansion, boost social services and deepen ongoing reforms across the state.
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He allocated N811.8 billion, representing 80 per cent of the total outlay, to capital projects, while recurrent expenditure got N204.4 billion, or 20 per cent of the budget.
Mr Otti said that the capital vote rose by 32 per cent from N726.4 billion in 2025, and the recurrent increased by 33 per cent to support daily operations and new personnel.
He said that 20 per cent of the budget, totalling N203.2 billion, was earmarked for education.
He also stated that the N150.4 billion allocated for education would fund the salaries of at least 15,000 teachers and new school infrastructure.
Mr Otti announced plans to build 17 model primary and secondary schools, three technical colleges, staff quarters and more than 100 ICT laboratories.
The governor said that tertiary institutions would receive N52.8 billion for salaries and new facilities.
He allocated N149.7 billion for the health sector, representing 15% of the budget.
He stated that the funds would be allocated to acquiring new equipment for Abia State University Teaching Hospital, Aba, and 23 facilities, as well as the renovation of seven general hospitals, among other projects.
Governor Otti allocated N169.3 billion, or 16.7 per cent of the budget, to road construction and rehabilitation, and listed the Umuahia-Ikot Ekpene, Ahiaeke-Okwuta-Bende and Umuahia-Umueze-Agwu roads, among the priority projects.
He said that the transport sector received N11.1 billion, adding that N6 billion would be used to fund 80 additional electric buses and complete transport terminals and bus shelters.
Governor Otti said that over N229 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 hit N223.4 billion in 2026, compared to about N100 billion in 2025.
He said that all the recurrent expenses would be funded from the IGR.
Mr Otti predicted N83.2 billion from FAAC, N67.1 billion from VAT, N26.5 billion from grants and N168 billion from other federal sources, putting the total revenue projection at N607.2 billion.
He put the deficit at N409 billion, or 40 per cent of the budget, saying that it would be funded through concessionary loans, strictly for capital projects.
The governor promised that his administration would borrow only when necessary and would not use loans to fund recurrent expenditure.
He, therefore, urged the assembly to consider and pass the draft budget, describing it as critical to sustaining the state's development trajectory.
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Speaker's response
Responding, the Speaker of the assembly, Emmanuel Emeruwa, said that the state had inherited a deep fiscal hole in 2023, but the present administration was steadily restoring stability.
Mr Emeruwa said that the 2026 budget size reflected growing responsibilities and expanding the development needs of the state.
He stated that the government's revenue projection stood at over N600 billion, with no deficit and no record of new borrowings. He commended the governor for prudent fiscal management, urging continued discipline in budget execution.
The speaker assured the governor that the House would thoroughly review the estimates and support measures that benefit the state.
(NAN)
