In a strategic move to drive continued development, Governor Alex Otti today presented the 2025 budget to the Abia State House of Assembly. The budget, aptly titled the “Budget of Sustained Momentum,” lays the groundwork for substantial investments in capital projects, public services, and infrastructure.
The proposed budget for the 2025 fiscal year totals ₦750,282,200,000 (Seven Hundred and Fifty Billion, Two Hundred and Eighty-Two Million, Two Hundred Thousand Naira), reflecting a 30% increase compared to the 2024 budget. This rise is a testament to the state’s commitment to addressing challenges such as inflation and exchange rate volatility while propelling the state’s development forward.
A key aspect of the 2025 budget is the significant allocation for capital projects, which will receive ₦611.7 billion, or 82% of the total budget. This funding aims to accelerate the long-term socioeconomic transformation of Abia State, building on the successes of the past 18 months.
The remaining ₦138.6 billion, or 18% of the budget, will go toward recurrent expenditures. This includes personnel costs, social benefits, overheads, and debt servicing, ensuring the continued functionality of government services.
As in the previous year, priority will be given to essential sectors such as health and education, which will receive a combined 35% of the total budget. Specifically, the breakdown is:
- 15% for health
- 14.63% for basic and secondary education
- 5.42% for tertiary education
The state’s revenue projections for 2025 show a robust growth strategy. Key expected increases include:
- 213% rise in internally generated revenue (IGR) to ₦100.6 billion
- 96% increase in statutory allocations to ₦183.4 billion
- 55% increase in grants to ₦25.5 billion
- 35% increase in VAT to ₦55.1 billion
The remaining ₦364.1 billion, or 51%, will be sourced from domestic and multilateral channels. Notably, the state will continue its policy of financing recurrent expenditures without borrowing. Borrowing will be reserved for capital projects that are self-sustaining, and the state is on track to repay outstanding debts, with zero indebtedness to contractors as of 2024.
For a detailed breakdown of the 2025 budget, including project-specific allocations and revenue sources, click here to view the full document.
