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At the Imo State Economic Summit, which was held in Owerri from December 4 to December 5, 2025, Senator Hope Uzodimma, the governor of Imo state, announced that the Orashi Electricity Company Limited was ready to drive energy self-sufficiency for the state and also to power the 27 local government areas of the state. In fact, he declared that the headquarters of the 27 local governments will soon be linked to the Orashi power grid. This was in furtherance of a pact between the state and Orashi, signed in August 2025, to “generate, transmit and distribute electricity to the 27 local government areas.” It was, therefore, not a surprise to most Imo people when Governor Uzodimma presented an appropriation bill for 2026, with a total budget size of N1,439,573,590,405.04, to the State House of Assembly, with about N1.201 trillion, or 83.4% allocated for capital expenditure, while about N238.5 billion, representing about 16.6% was allocated for recurrent expenditure.
The huge allocation to capital expenditure aligns with consistent views of Ngozi Okonjo-Iweala, an international development expert and current Director-General of the World Trade Organization (WTO), among many other development experts, who had advised that for Nigerian states to develop, more funds must be allocated for capital expenditure against recurrent expenditure.
Tagged the “Budget of Economic Breakthrough,” it marks a significant milestone in the state’s fiscal planning and underscores the commitment of the Uzodimma administration to transforming Imo into an economic powerhouse. With a heavy focus on capital projects, which are the cornerstone of development, the budget aims to leverage improved federal allocations and internally generated revenue for sustainable growth.
A breakdown of the capital expenditure saw allocation to key sectors of the state’s economy like health hitting ₦698.163 billion, power and electrification, N190.451 billion, works and infrastructure, N87.727 billion, education, N60.623 billion, and agriculture N20.506 billion. These allocations, which are substantial boosts, also reflect the governor’s mindset on a holistic approach to development. The infrastructure-centric design of the budget, especially its boost to power generation and distribution, aligns with Governor Uzodimma’s programme of Light-Up Imo.
The budget enhances Imo government’s aim to reduce dependence on the national grid and foster industrial growth through energy self-sufficiency. It also builds on Governor Uzodimma’s 3R mantra, which is focused on rehabilitation, reconstruction, and recovery. Driven by this, the state has already delivered over 130 completed roads, including major arteries like the Owerri-Okigwe, Owerri-Orlu, and Owerri-Umuahia dual carriageway and the Assumpta flyover. The N87.727 billion earmarked for works and infrastructure will no doubt accelerate ongoing projects, enhance connectivity, and boost trade within the state and beyond. The budget’s infrastructure impact extends to healthcare and education, where funds will rehabilitate facilities and improve access, indirectly supporting human capital development essential for sustainable growth.
For instance, the massive N698.163 billion for health will fund hospital upgrades and equipment procurement, reduce medical tourism, and free up household incomes for other investments. Similarly, education’s N60.623 billion allocation aims to modernise schools, potentially incorporating digital infrastructure to align with the state’s emerging tech ecosystem. Agriculturally, the ₦20.506 billion investment promises to establish agro-industrial processing zones in three local government areas and link rural infrastructure with urban markets.
This could involve road expansions and irrigation systems, transforming Imo from a subsistence farming state into an agribusiness hub. The expansion of Sam Mbakwe International Cargo Airport through public-private partnerships is another highlight, which positions Imo as a logistics center and attracts foreign direct investment. Critically, the budget’s infrastructure thrust addresses longstanding challenges like insecurity and unemployment by creating jobs through construction and related industries. Governor Uzodimma has pledged no abandoned projects, ensuring continuity and maximising returns on investment.
However, the Orashi Power Plant and the associated Energy City represent the budget’s most transformative infrastructure elements. With the power sector receiving N190.451 billion, which is a statement of priority, the focus of most Imolites is on how the 2026 budget will impact the Light-Up Imo programme. The 380 MW Orashi Power Plant is part of a broader energy strategy that aims to generate, transmit, and distribute electricity across Imo’s 27 local government areas (LGAs). This will drastically reduce reliance on generators and the national grid.
The budget will impact the development of additional power infrastructure, including the 7.5 MVA substations, gas pipelines, and grid expansions, which will enhance the development of the Orashi Special Energy Free Zone, Petrochemical clusters, and manufacturing hubs. As projected, the free zone will leverage Imo’s natural gas reserves and incorporate assets like the 338 MW Egbema power plant and others to create a sustainable energy ecosystem. Environmentally, the shift to gas-powered generation aligns with global sustainability goals, potentially reducing carbon emissions compared to diesel generators.
This could deliver 24/7 power to industries and communities, slash operational costs for businesses by up to 50% and stimulate manufacturing. The Energy City, as a free trade zone, is expected to attract investors in renewables and petrochemicals, creating thousands of jobs and boosting the state’s IGR through exports. If successful, the Orashi energy could position Imo as the Southeast’s energy leader as well as foster regional integration and economic self-sufficiency. It also has the potential to power new roads, airports, and agro-zones, which will ensure a holistic development of the state as envisioned by Governor Uzodimma, who had declared his readiness to eradicate “generator-powered economy” and usher in a new era of industrial expansion.
Illuminating Imo, through the Light-Up Imo programme, will enhance security and economic activities across the state. The programme targets a stable electricity supply across all 27 LGAs, focusing on street lighting, rural electrification, and grid stabilization. According to details of the programme, initial approvals under the Ministry of Power and Electrification include solar-powered streetlights and substation upgrades, with a defined timeframe for completion to ensure quality. However, the programme has faced controversies, including allegations of sabotage by Enugu Electricity Distribution Company (EEDC). There are allegations that the company may contest the right of the state to engage in the distribution of electricity across Imo, despite the unbundling of the law governing the generation and distribution of electricity, which empowered several state governments to venture into the field. Despite this, Governor Uzodimma is determined to ensure the distribution of reliable power across Imo for industries, communities, and households.
The people of Imo state expect that enhanced night-time security, occasioned by a lit environment, would reduce crime, while consistent power would boost small businesses as well as extend the operational business hours and increasing productivity through a regeneration of night-time economy across the state. For rural areas, it means better access to education and healthcare, as lit communities will facilitate evening activities.
In essence, the Imo 2026 budget’s impact on the Light-Up Imo programme will lead to enhanced funding for energy infrastructure to enable the distribution of power generated by Orashi Electricity Company Limited. This will be a massive boost for the economy of Imo state, leading to heightened security and economic activities, including the regeneration of a night economy in the state. This indicates that Governor Uzodimma’s budget focuses on infrastructure development through the over N1.201 trillion capital expenditure, which is a strategic step toward economic autonomy for Imo state. If implemented effectively, with Orashi and Light Up Imo as pivotal enablers, Imo State could emerge as a model for infrastructure-led development in Nigeria.
