By Ihechinyere Chigemeri-Uwom
Umuahia, Nov. 25 ,2025
Gov. Alex Otti of Abia on Tuesday presented a N1.016 trillion appropriation bill for the 2026 fiscal year to the State House of Assembly.
Presenting the budget christened “Budget of Acceleration and New Possibilities” to the Assembly, in Umuahia, Otti said that the budget proposal represents a 13 per cent rise from the 2025 appropriation, which was N750.28 billion.
Otti said that the budget had been designed to fast-track infrastructure expansion, boost social services and deepen ongoing reforms across the state.
He allocated N811.8 billion, representing 80 per cent of the total outlay, to capital projects, while recurrent expenditure would take N204.4 billion, or 20 per cent of the budget.
The governor said that the capital vote rose by 32 per cent from N726.4 billion in 2025 and the recurrent spending increased by 33 per cent to support daily operations and new personnel.
Otti said that the 20 per cent of the budget, totalling N203.2 billion, has been earmarked for education.
He also said that the N150.4 billion would fund salaries of about 15,000 teachers and new school infrastructure.
Otti announced plans to build 17 model primary and secondary schools, three technical colleges, staff quarters and more than 100 ICT laboratories,while tertiary institutions would receive N52.8 billion for salaries and new facilities.
The governor proposed N149.7 billion for the health sector, representing 15 per cent of the total budget.
He said that the funds would be spent on things like acquisition of new equipment for Abia State University Teaching Hospital and 23 facilities, the renovation of seven general hospitals,among others.
Otti allocated N169.3 billion, or 16.7 per cent of the budget, to road construction and rehabilitation, and named the Umuahia-Ikot Ekpene, Ahiaeke-Okwuta-Bende and Umuahia-Umueze-Agwu roads among the priority projects.
He said that N11.1 billion would be allocated to the transport sector, adding that N6 billion would be used to fund 80 additional electric buses and complete transport terminals and bus shelters.
Otti said that over N229 billion had been 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 to hit N223.4 billion in 2026, compared to about N100 billion expected in 2025.
He said all recurrent expenses would be funded from internally generated revenue.
Otti forecasted N83.2 billion from FAAC, N67.1 billion from VAT, N26.5 billion from grants and N168 billion from other federal sources making the total revenue projection to stand at N607.2 billion.
He put the deficit at N409 billion, or 40 per cent of the budget, and said it would be funded through concessionary loans strictly for capital projects.
Otti assured that his administration would borrow only when necessary and would not use loans to fund recurrent expenditure.
He urged the Assembly to consider and pass the draft budget, describing it as critical to sustaining the state’s development trajectory.
Responding, the Speaker of the House of Assembly, Mr. Emmanuel Emeruwa, said that the state had inherited a deep fiscal hole in 2023 but the present administration was steadily restoring stability.
Emeruwa said that the 2026 budget size reflected growing responsibilities and expanding development needs of the state.
He noted that government revenue projection stood at over N600 billion, with no deficit or record of new borrowing s.
Emeruwa commended the Governor for prudent fiscal management and urged continued discipline in budget execution.
The Speaker assured that the House would thoroughly review the estimates and support measures that benefit the state.
