Governor Mbah Budgets To Spend ₦‎971bn In 2025

Governor Mbah Budgets To Spend ₦‎971bn In 2025
Spread the love

Loading

The Enugu State House of Assembly has been presented with a record N971 billion budget bill for the fiscal year 2025 by Governor Dr. Peter Mbah.
Mbah presented the “Budget of Exponential Growth and Inclusive Prosperity” estimates on Tuesday on the House floor. He stated that the proposed estimates included N837.9 billion in capital expenditures, which accounted for 86% of the budget estimates, and N133.1 billion in recurring expenditures, which accounted for only 14% of the budget.
This surpasses the record-holding 2024 budget of N521.5 billion, which was made up of N107.2 billion in recurring expenditures, or roughly 21% of the total budget, and N414.3 billion in capital expenditures, or 79% of the total budget.

But just like the 2024 budget, the 2025 budget proposal places a strong emphasis on investing heavily in education as well as basic but essential infrastructure and amenities like roads, bridges, water supply, transportation services, energy, and the modernization and digitization of public services and related processes. For two years in a row, the education sector received the largest portion of the budget—N320.6 billion, or more than 33% of the total.
According to Mbah, this was consistent with his administration’s goal of ending poverty and implementing an inclusive development model that guarantees that no individual or group within society is left behind.

Addressing the House, Mbah said, “In crafting this budget, we have sort to continue to lay the right foundation in Enugu to enhance the economy and attract even more private investment.

“In spite of the dreary economic environment across the country, for us here in Enugu, we have elected to remain bullish in our aspirations, and to double down on our commitment to elevate our state to top three status in terms of GDP nationally, and eradicate poverty from our midst.

“Indeed, we see this as a vindication of our previously espoused view that sustainable national growth can really only be driven from the sub-national units to the federal levels, and not the other way round as we have attempted to do to date.

“It is on account of this that we are proposing to the House of Assembly today, a budget with a total envelope of N971,084,000,000.00 as against the budget for 2024 fiscal year which totaled N521,561,386,000.00.

“This represents an 86.4 per cent increase from the 2024 revised budget.

“The budget is broken down as follows: N133,140,000,000.00 as Recurrent Expenditure and N837,944,000,000.00 as Capital Expenditure,” he said.

On sources of revenue, he said, “In the area of our revenues, we estimated that total Recurrent revenues during 2025 will amount to N692,179,000,000 as against the approved revised provision for 2024 of N383,789,000,000.00.

“The Recurrent revenues for 2025 are broken down as follows: opening balance – N32,000,000,000; Internally Generated Revenue, IGR – N509,947,000,000; statutory revenue – N48,749,000,000; exchange rate differential – N26,559,000,000; and Value Added Tax, VAT – N74,924,000,000.

“With the total Recurrent Expenditure at N133,140,000,000.00, this translates to a Net Recurrent Revenue of N559,039,000,000.00, which is thus transferred to the Capital Development Fund.

“The total Capital Expenditure for the year 2025 is projected at N837,944,000,000.00 as against N414,334,120,000.00 for the 2024 Revised Budget. The Current Capital Expenditure estimate will be funded from the sum of N559,039,000,000.00 to be transferred from the Consolidated Revenue Fund, and the Capital receipts of N278,905,000,000.00 to be realized as follows: External and Internal Aids and Grants – N15,000,000,000; other receipts – N80,202,000,000; Domestic Loans/Borrowings receipts – N55,000,000,000; and International Loans/Borrowings – N128,503,000,000.”

Regarding broad sectors, the Economic Sector received the largest share of capital expenditures (N462 billion, or 55.1%), followed by the Social Sector (N345.7 billion, or 41.2%).
In line with Mbah’s efforts to end poverty and transition the state to a knowledge-based economy, education received the largest share of all sectors (33.2%).

“As we must all know by now, Education is both our ‘sword’ and ‘shield’ in this battle to achieve economic growth in our state and banish poverty and want among our population. Consequently, we are maintaining the ambitious direction we charted in 2024 by voting a total of N320,609,059,000,00 for that sector. This represents 78% of the social sector of the budget and 33.2% of our Capital Expenditure this year,” he stated.

The governor explained that the 2025 budget would also focus greatly on health, road infrastructure, transport, agriculture, and water sectors, among others.

“There can be no economic growth without quality healthcare. This is why we are spending N45,830,896,000.00 on the sector this year.

“In the area of Works and Infrastructure, we will continue our relentless advance towards our target to build or refurbish all key roads across the state by 2031. In line with this, we will spend a total of N213,120,267,000.00 in 2025.

“Food inflation is a major component of core inflation in Nigeria. Consequently, food production is critical to moderation of the currently high levels of inflation in the Country. As a result, we will be spending up to N82,300,761,000.00 in the agricultural and agro-industrialisation sector this year.

To expand Enugu Air by purchasing four more aircraft, we will be spending a total of N41,132,463,000.00 in the transportation sector. We will also complete the construction of an international cargo terminal and the concessioning of the Akanu Ibiam international airport. In order to modernize urban and inter-urban transportation for Ndi Enugu, we will also be launching a new taxi scheme in partnership with the private sector.

Editor

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!