Governor allocates 80% to capital projects, raises education and health spending, targets N223bn in IGR
Abia State Governor, Alex Otti, has presented a N1.016 trillion budget proposal for the 2026 fiscal year to the Abia State House of Assembly. The spending plan, described as the “Budget of Acceleration and New Possibilities,” marks a 13% increase from the state’s 2025 budget.
The presentation was made on Wednesday, according to a statement issued by the Governor’s Chief Press Secretary, Ukoha Njoku Ukoha.
Major Allocations
Of the total estimate, N811.8 billion representing 80%, is earmarked for capital expenditure, while N204.4 billion (20%) is assigned to recurrent spending. The capital vote reflects a 32% rise from the 2025 proposal, underscoring the administration’s continued emphasis on infrastructure and development.
Recurrent expenditure also grew by 33% from last year’s N136 billion. Otti explained that the upward adjustment was necessary to support administrative operations and accommodate the thousands of new employees recently added to the state’s workforce.
The statement quoted the governor as saying:
“This figure represents a 13% increase from the 2025 appropriation numbers and captures the scale of our ambition to drive rapid socioeconomic growth and sustained development through investments in infrastructural projects, social services, security and similar outlays at the heart of the State’s transformation.”
He added that the capital allocation “represents a 32% jump from our 2025 proposal, which stood at N726.4 billion.”
Sectoral Priorities
Education and health emerged among the biggest beneficiaries, receiving 20% and 15% of the proposed budget respectively, amounting to a combined 35% allocation for human-capital development.
The statement also revealed that N169.3 billion has been dedicated to road construction, reconstruction, rehabilitation, and maintenance across the state in 2026.
Revenue Assumptions and Funding Strategy
According to the governor, the 2026 budget was developed using conservative revenue assumptions aligned with the economic environment of 2025. Abia projects N223.4 billion in internally generated revenue for the upcoming year.
Otti noted that the state plans to fund all recurrent expenditures from internally generated revenue, while any borrowing undertaken during the fiscal year would be strictly channelled toward infrastructure development.
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