The Governor of Enugu State, Dr. Peter Mbah, has presented a proposed record ₦971 billion budget bill to the state’s House of Assembly for the 2025 fiscal year.
The Senior Special Assistant on Media to the Governor, Mr. Dan Nwomeh made this known in a statement issued on Tuesday, November 26, 2024.
According to the statement, Mr. Mbah while presenting the estimates titled “Budget of Exponential Growth and Inclusive Prosperity” at the floor of the House, said the proposed estimates comprised ₦837.9 billion capital expenditure, representing 86 per cent of the budget estimates, and a recurrent expenditure component of ₦133.1 billion, representing only 14 per cent of the budget.
“This topples the record-holding 2024 budget of ₦521.5bn, consisting of ₦414.3bn Capital Expenditure, representing 79 per cent of the total budget and ₦107.2bn Recurrent Expenditure, representing about 21 per cent.
“However, like the 2024 budget, the 2025 budget proposal emphasizes huge investment in education as well as basic but critical infrastructure and amenities like roads and bridges, water supply, transport services, energy, modernization and digitization of public services and associated processes, with the Education sector getting a lion-share of N320.6bn, representing over 33 per cent of the total budget for two consecutive years,” he stated.
Governor Mbah explained that the 2025 proposed budget is in line with his administration’s target of poverty eradication, and an inclusive development model, which ensures that no one or segment of the society is left behind.
He also announced a growth in the state’s Internally Generated Revenue (IGR) from ₦37.4bn at the end of 2023 to ₦144.7bn in September 2024, representing a radical 286.2 per cent increase in line with the administration’s deliberate effort to wean the state off reliance on Federal Account Allocation Committee (FAAC) appropriations.
“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, the governor explained, “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.”
Similarly, he mentioned that in terms of broad sectors, the economic sector got a lion share of ₦462 billion, representing 55.1 per cent of the capital expenditure, followed by the social sector with ₦345.7 billion, representing 41.2 per cent.
In terms of specific sectors, Governor Mbah pointed out that education got 33.2 per cent, the largest chunk, in sync with his government’s effort to eradicate poverty and graduate the state to a knowledge-based economy.
“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.”
The governor noted that the 2025 budget would also focus greatly on health, road infrastructure, transport, agriculture, and water sectors, among others.
He added: “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.
“In the area of Transport, we will be spending a total of N41,132,463,000.00 to expand Enugu Air with the acquisition of 4 additional aircraft. In addition, we will be consummating the concessioning of the Akanu Ibiam international airport as well as the construction of an international cargo terminal. We will also be floating a new taxi scheme in collaboration with the private sector to modernize urban and inter-urban transportation for Ndi Enugu.”
