Governor Peter Mbah of Enugu State has proposed a record-breaking N971.8 billion budget for the 2025 fiscal year.
This proposal, titled “Budget of Exponential Growth and Inclusive Prosperity,” allocates N837.9 billion for capital expenditure, representing 86% of the budget; and N133.1 billion for recurrent expenditure, representing 14%.
Presenting the budget appropriation on Tuesday before the Enugu State House of Assembly, Governor Mbah said that this proposed budget surpasses the previous record of N521.5 billion set in 2024.
The education sector is once again a top priority, receiving N320.6 billion, which accounts for over 33% of the total budget. This allocation is consistent with Governor Mbah’s goal of poverty eradication and inclusive development.
The governor also announced a significant increase in the state’s Internally Generated Revenue (IGR), from N37.4 billion in 2023 to N144.7 billion in September 2024, representing a 286.2% growth. This increase is attributed to the administration’s efforts to reduce reliance on FAAC allocations.
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.”
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 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,” 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.
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.
*2024 Budget Performance*
Giving a breakdown of the state’s IGR and overall performance of the 2024 budget, the governor noted a remarkable increase in the state’s IGR since the inception of this administration, explaining that while the state’s IGR stood at N26.8bn in 2022, the administration it by 39 per cent to N37.4bn at the end of 2023.
However, as at September 2024, the state’s IGR had drastically increased to ₦144.7bn, representing a 286.2 per cent increase, expressing confidence that ti would surpass 200billion by the end of the year.
“In terms of budgetary performance, the total revenue realised in the state as at October 2024 came to N459,851,309,396.47, which comes to a budget performance of 88%. Of this amount, N178,354,494,502.47 related to Statutory Receipts, while N136,700,000,000.00 related to Capital Receipts and N144,796,814,894.00 to Internally Generated Revenue.
“As at October, these inflows had been applied to Expenditure with N382,427,929,564.00 as Capital Expenditure and N76,546,090,116.18 as Recurrent Expenditure. These translated to a budget performance of 88%. Additional revenues and Expenditure are still expected before the end of the year, with IGR envisaged to surpass the N200 billion mark.
“While we may make bold to say that our progress in this past year is commendable given the odds that were arraigned against the state economy, we are not yet ready to rest on our oars,” Mbah said.
Meanwhile, the Speaker of the State Assembly, Hon. Uchenna Ugwu, has promised early passage of the budget by the House to sustain the governor’s development strides.
“He exhibited his leadership mantra, tomorrow is here.
“Because you have demonstrated enormous capacity; because you have exhibited enormous potential of the very fabric of our state’s economy, I want to assure you that the House of Assembly shall expeditiously consider this and give you the legal framework to continue flying high,” Hon. Ugwu stated.
