… Pledges full recurrent spending from internal revenue
Abia State Governor, Dr. Alex Otti, on Tuesday presented the 2026 budget, titled “Acceleration and New Possibilities”, to the State House of Assembly, proposing a N1.016 trillion fiscal plan with a strong focus on infrastructure, social services, and economic growth.
At the session, Otti highlighted the State’s impressive progress across health, education, agriculture, energy, and urban development in the past 11 months, stressing that the government’s strategic investments had significantly expanded economic activity and investors’ confidence.
“Our cities and towns now rank among the cleanest urban destinations in the country, while productivity in the civil service is rising due to improved welfare and capacity-building programmes,” he said.
“Our grand plan for the youth is to provide them the extensive support they need to build and sustain themselves through consistent value creation.”
Healthcare and Human Capital Development:
The governor announced that health workers in Abia enjoy parity with their federal counterparts, and that 771 new health professionals had been recruited to bolster service delivery across the State.
Since the rollout of the formal sector health insurance programme in April, about 120,000 persons have been enrolled, guaranteeing access to quality healthcare services at partner facilities. Otti noted that Abia was recently ranked the most prepared state for health emergency responses nationwide.
Education: Abia’s Biggest Industry:
Education, described as the State’s largest sector, continues to receive the largest budget allocation, with 20% of the 2026 budget earmarked for education. The government has already recruited 5,394 teachers for primary and secondary schools, with another 4,000 in progress, while over 100 schools are being remodeled and retrofitted with smart learning infrastructure.
“Enrolment has doubled in the last nine months, especially following the rollout of the free and compulsory basic education policy,” the governor said.
Financial and structural support is also being extended to tertiary institutions, including Abia State University, Ogbonnaya Onu Polytechnic, and Abia State College of Education Technical.
Agriculture and Food Security
Otti emphasized a data-driven approach to agriculture, creating a comprehensive database to map farmers, farmlands, and assets. In the last farming season, over 2,000 small-holder farmers received targeted support. Dormant State-owned agricultural assets, including rubber and palm oil plantations, have been surveyed and digitized to guide investor engagement.
Energy Milestones:
Abia’s push for energy independence has seen the passage of the Abia State Electricity Law and the establishment of the Abia State Electricity Regulatory Agency (ASERA). The government has successfully negotiated the acquisition of electricity distribution assets outside the Aba corridor, advancing its goal of controlling the electricity value chain statewide.
Budget Overview: N1.016 Trillion for 2026
The proposed budget for 2026 totals N1,016,228,072,651.99, a 13% increase over the 2025 budget. 80% of the budget (N811.8 billion) is earmarked for capital projects, including road construction, ICT, health facilities, schools, and urban development, while 20% (N204.4 billion) will fund recurrent expenditure, including salaries and day-to-day administration.
Key allocations include:
Education: N203.2 billion (17 model schools, 3 technical colleges, ICT labs, staff quarters, and tertiary institutions).
Health:*mN149.7 billion (life-saving equipment, 23 public health facilities, and 7 general hospitals).
Roads:N169.3 billion (Umuahia-Ikot Ekpene Road, Ahiaeke-Okwuta-Bende Road, Umuahia-Umueze-Agwu-Mbom Road, and others).
Public Transport: N11.1 billion (80 additional electric buses, transport terminals, junction improvement works, and bus shelters).
Entrepreneurship, Agriculture, Youth, Women, Vulnerable Groups: Over N229 billion earmarked for inclusive growth, job creation, and resuscitation of dormant economic assets.
Fiscal Prudence and Revenue Projections:
The governor projected Abia’s IGR at N223.4 billion in 2026, up from about N100 billion in 2025, stressing that all recurrent expenditures will be funded from internal revenue, while external sources will finance capital projects.
Revenue projections include:
FAAC: N83.2 billion
VAT collections:N67.1 billion
Grants and aids: N26.5 billion
Other federal accruals: N168 billion
Total revenue is estimated at N607.2 billion, leaving a deficit of N409 billion, which will be financed through concessional loans exclusively for capital projects.
“Not a penny shall be borrowed to finance recurrent expenditures,” Otti affirmed.
“We shall borrow only when absolutely necessary and only for projects capable of liquidating the loans in the medium to long term.”
Otti thanked the Speaker and Assembly members for their collaboration and formally laid the draft budget before the House for careful consideration and passage.
“This budget is a reflection of our commitment to accelerated development, fiscal prudence, and inclusive growth. I urge the House to consider it judiciously in the interest of all Ndi Abia,”* the governor concluded.
Picture: Governor Alex Chioma Otti
