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From Boniface Okoro in Umuahia
Abia State Governor, Dr. Alex Otti, has presented the draft of the State’s 2026 appropriation bill of N1,016,228,072,651.99 to the state legislature for consideration.
Governor Otti laid the bill christened “Budget of Acceleration and New Possibilities” representing a 13 percent increase from that of 2025, before the state lawmakers on Tuesday, November 25, 2025.
In the 2026 estimates, the sum of N811,813,769,862.24 (80 percent of the draft bill) has been proposed for Capital Expenditure, while the sum of N204,414,302,789.75 (20 percent of the budget) is for Recurrent Expenditure
“A total outlay of N811.8 billion for capital projects represents a 32% jump from our 2025 proposal which stood at N726.4billion. Conversely, the size of the envelope for recurrent expenditure has been raised by 33% from last year’s figure which stood at N136 billion. The increase is to enable us support critical day-to-day administrative functions and effectively meet our obligations to personnel, especially with the addition of thousands of new employees to the payroll,” the Governor said.
As has been the standing practice of the Otti administration, 20 percent of the total budget, amounting to N203.2 billion, was allocated to the education sector for the 2026 fiscal year.
Of this sum, N150.4 billion would be committed to offsetting recurrent expenditures like paying the salaries of about 15,000 teachers working primary and secondary schools and in the execution of capital projects.
“We have made provisions for the building of 17 model primary and secondary schools as well as three technical colleges for vocational training programmes.
“Also noteworthy is the fact that provisions have been made for the building of staff quarters and ICT labs in more than 100 public schools around the State.
“In the same vein, we have also earmarked N52.8 billion for recurrent and capital projects in the tertiary education sub-sector. This sum, in addition to catering for the welfare of the staff of the Abia State University, Ogbonnaya Onu Polytechnic and Abia State College of Education Technical, Arochukwu, shall also be channelled into the renovation and construction of hostels for male and female students, lecture theatres and support for general development programmes within these institutions, Otti explained.
The Governor also maintained the culture of allocating 15 percent of the proposed budget, representing N149.7 billion to the health sector. He said the money will cover programmes and activities connected to healthcare delivery services in the 2026 fiscal year.
“Some of the very notable capital projects we shall be driving in the New Year include the supply of life-saving equipment to the Abia State University Teaching Hospital and across 23 other public health facilities around the State. Provisions have also been made for the reconstruction or renovation of 7 General Hospitals and similar physical development activities across the public-owned health institutions to support effective manpower development in the sector,” he said.
To continue with its aggressive road infrastructure development programme in 2026, the Governor said the sum of N169.3 billion, representing 16.7 percent of the total envelope has been budgeted for road construction, reconstruction, rehabilitation and maintenance through the Ministry of Works.
“In line with our vision of transforming the public transport system, we have proposed to commit N11.1 billion to the sector in the new financial year.
“Of this sum, N6 billion shall be committed to the acquisition of 80 additional units of 40-seater electric-powered buses for urban mass transit. We have also made provisions for the completion of the inter-modular transport terminals; junction improvement works and bus shelters which we estimate would come into operations by the second quarter of 2026. As you may be aware, the first set of 20 customised electric buses has been delivered and shall begin operations shortly,” he added.
He said the budget would be funded with receipts from the federation account, Valued Added Tax and Internally –Generated Revenue, all of which were expected to yield 60 percent of the total envelop. As result, he announced that state’s IGR portfolio for 2026 has been increased to N223.4 billion, up from N120 billion in 2025.
On other receipts, he said: “In the New Year, we estimate that the State would earn N83.2 billion through the Federation Accounts Allocation Committee (FAAC), N67.1 billion from VAT collections, N26.5 billion from grants and aids and N168 billion from other federal revenue channels and accruals. Our combined revenue projection from internal and external sources for 2026 is N607.2 billion leaving us a balance of N409 billion. The deficit, 40% of the entire outlay, shall be sourced from the loan markets at concessionary rates.”
He said the state recorded impressive progress in the implementation of the 2025 budget and hopes to do better in 2026.
Responding, the Speaker of Abia State House of Assembly, Rt. Hon. Emmanuel Emereuwa, promised that the bill would be given accelerated consideration.
