Enugu State Governor, Dr Peter Mbah, has unveiled a proposed budget of ₦971 billion for the 2025 fiscal year. The budget, described as the largest in the state’s history, was presented to the Enugu State House of Assembly on Tuesday and titled "Budget of Exponential Growth and Inclusive Prosperity."
The proposed estimates allocate ₦837.9 billion to capital projects, accounting for 86% of the budget, while ₦133.1 billion is set aside for recurrent expenditure, representing 14%. This marks a substantial 86.4% increase from the 2024 budget of ₦521.5 billion, which allocated ₦414.3 billion to capital expenditure and ₦107.2 billion to recurrent spending.
Focus on Education and Infrastructure
Education remains a top priority, with ₦320.6 billion—33.2% of the budget—earmarked for the sector, maintaining its dominant share for the second consecutive year. Governor Mbah explained that this allocation aligns with his administration's goal of poverty eradication and building a knowledge-driven 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,” he stated.
In addition to education, other major allocations include ₦213.1 billion for road infrastructure, ₦82.3 billion for agriculture, ₦45.8 billion for healthcare, and ₦41.1 billion for transport. The transport sector will see investments in expanding Enugu Air with four new aircraft and the construction of an international cargo terminal.
Revenue Projections and Growth in IGR
Governor Mbah highlighted an impressive increase in the state’s Internally Generated Revenue (IGR), which rose from ₦37.4 billion in 2023 to ₦144.7 billion as of September 2024—a 286.2% surge. He expressed confidence that the IGR would surpass ₦200 billion by the end of 2024, further reducing reliance on federal allocations.
“For 2025, we estimate total recurrent revenues of ₦692.2 billion, which include ₦509.9 billion from IGR, ₦74.9 billion from VAT, and other sources,” Mbah detailed.
Capital expenditure will be funded through ₦559 billion transferred from recurrent revenues and ₦278.9 billion in capital receipts, including loans and grants.
Economic and Social Sector Priorities
The economic sector leads the budget allocation with ₦462 billion, representing 55.1% of capital expenditure, followed by the social sector with ₦345.7 billion, or 41.2%.
Governor Mbah reaffirmed his administration’s commitment to modernising public services, building critical infrastructure, and boosting food production to address inflation. “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,” he remarked.
2024 Budget Performance
Providing an update on the 2024 budget, Mbah noted a budget performance rate of 88% as of October 2024, with ₦459.9 billion in total revenue realised. Capital expenditure accounted for ₦382.4 billion, while recurrent expenditure stood at ₦76.5 billion.
He commended the state’s economic progress despite challenging national conditions, stating, “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.”
Legislative Support
In response, the Speaker of the State Assembly, Hon Uchenna Ugwu, assured the governor of the legislature’s swift consideration and approval of the budget. “Because you have demonstrated enormous capacity and potential for 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,” Ugwu stated.