Enugu State Governor Dr Peter Mbah has proposed a groundbreaking budget of ₦971 billion for the 2025 fiscal year, bringing the state’s budget size to a third of Lagos State—Nigeria’s commercial capital and equal to the oil-rich Akwa Ibom State.
On Tuesday, November 26, he presented the Enugu State House of Assembly with the budget titled “Budget of Exponential Growth and Inclusive Prosperity.”
Mbah’s proposal allocates ₦837.9 billion for capital expenditures, which comprise 86% of the total budget. The recurrent expenditure is set at ₦133.1 billion, only 14%, possibly the lowest recurrent-to-capital expenditure ratio of any budget in Nigeria’s history.
The budget nearly doubles the 2024 budget of ₦521.5 billion, which had ₦414.3 billion for capital expenditures and ₦107.2 billion for recurrent expenditures.
Addressing the state’s legislative body Tuesday morning, Mbah said the 2025 budget prioritizes education and essential infrastructure like roads, bridges, and water supply. “We prioritize education with ₦320.6 billion, representing over 33% of our total budget,” he said. The governor explained to the House that his focus is on poverty reduction and promoting inclusive development, ensuring no one is left behind.
“There can be no economic growth without quality healthcare.”
Mr Mbah also noted that the state’s Internally Generated Revenue (IGR) grew substantially from ₦37.4 billion in 2023 to ₦144.7 billion by September 2024, an incredible 286.2%. Mbah said this growth leap helps reduce the state’s dependence on federal allocations.
“In crafting this budget, we have sought to build a stronger foundation for Enugu’s economy. We remain optimistic about our aspirations and aim to elevate Enugu nationally to the top three states in GDP.“
Budget Breakdown
Offering a further breakdown of the budget appropriations, the governor stated, “We propose a total budget of ₦971,084,000,000.00, which is an increase of 86.4% compared to last year’s budget.“
“There can be no economic growth without quality healthcare.”
The anticipated Recurrent Revenues for 2025 are estimated at ₦692,179,000,000, compared to ₦383,789,000,000 for 2024.
In the budget, the Economic Sector received the largest share, with ₦462 billion allocated, representing 55.1% of the capital expenditure. The Social Sector followed with ₦345.7 billion, representing 41.2%.
Mbah reaffirmed his commitment to education: “Education is our ‘sword’ and ‘shield’ in the fight against poverty.” For this reason, the budget allocates ₦320,609,059,000.00 to education, accounting for 78% of the Social Sector budget and 33.2% of Capital Expenditure.
The governor stressed that the budget will also dedicate funding to healthcare, road infrastructure, agriculture, and water supply. “There can be no economic growth without quality healthcare,” he added.
VIDEO: Governor Mbah set to unveil Enugu Air.
— Dan Nwomeh (@DanNwomeh) November 27, 2024
The airline obviously resonates with Ndi Enugu. pic.twitter.com/NueUrMGAv1
The governor announced plans for significant infrastructure improvements in Enugu State. “We aim to build or refurbish all key roads by 2031,” he stated. In 2025, the government will invest ₦120 billion in road projects and ₦82 billion in agriculture to combat food inflation.
The Transport Sector will also receive ₦41 billion to expand Enugu Air with four new aircraft. The governor also mentioned plans to concession the Akanu Ibiam International Airport and build a new cargo terminal.
“Our 2024 budget performance reached 88% as of October.”
The state’s internally generated revenue (IGR) showed remarkable growth, increasing from ₦26.8 billion in 2022 to ₦37.4 billion by the end of 2023. By September 2024, the IGR soared to ₦144.7 billion, a 286% increase.
“Our budget performance reached 88% as of October,” he added, and he expects further revenue growth by year-end.
Applause For Lawmakers
After receiving a standing ovation from an impressed Assembly, the Speaker of the State Assembly, Hon. Uchenna Ugwu, promised the governor swift budget passage to support his initiatives.
“Because you have demonstrated enormous capacity; because you have exhibited enormous potential of the very fabric of our state’s economy, I want to assure you that the House of Assembly shall expeditiously consider this and give you the legal framework to continue flying high,” the Speaker said.
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