… earmarks N837.9bn for capital expenditure, N133.1bn recurrent
… projects N144.7bn IGR, up from N37.4bn
Governor Peter Mbah of Enugu State has presented N971billion budget proposal for the 2025 fiscal year to the Enugu State House of Assembly.
Presenting the estimates entitled ‘Budget of Exponential Growth and Inclusive Prosperity’ at the floor of the House on Tuesday, Mbah gave a breakdown of the proposed budget as N837.9bn Capital Expenditure, representing 86 per cent of the budget, and a Recurrent Expenditure of N133.1bn, representing only 14 percent of the budget.
This topples the 2024 budget of N521.5bn, consisting of N414.3bn Capital Expenditure, representing 79 per cent of the total budget and N107.2bn 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.
Mbah said that this was 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.
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The governor equally announced a growth in the state’s Internally Generated Revenue (IGR) from N37.4bn at the end of 2023 to N144.7bn in September 2024, representing 286.2 percent increase in line with the administration’s deliberate effort to wean the state of reliance on FAAC allocations.
Addressing the House, Mbah said, “in crafting this budget, we have sought 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.”
Continuing, he said, 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 totalled 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.”
Meanwhile, in terms of broad sectors, the Economic Sector got a lion share of N462bn, representing 55.1 per cent of the Capital Expenditure, followed by the Social Sector with N345.7bn, representing 41.2 per cent.
In terms of specific sectors, Education got 33.2 per cent, the largest chunk, in sync with Mbah’s effort to eradicate poverty and graduate the state from ignorance to a knowledge-based economy.
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“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 percent 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. He added that there could 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, Mbah said that they would continue their relentless advance towards their target to build or refurbish all key roads across the state by 2031. In line with this, they 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, the state will be spending up to N82,300,761,000.00 in the agricultural and agro-industrialisation sector this year.
In the area of Transport, the governor said the state will be spending a total of N41,132,463,000.00 to expand Enugu Air with the acquisition of 4 additional aircraft. In addition, they 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,” he said.
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