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• Crashes recurrent to 14% at N133.1bn, capital expenditure rises to N837.9bn
Governor of Enugu State, Dr. Peter Mbah, has proposed a record N971 billion budget Bill for the 2025 fiscal year to the Enugu State House of Assembly.
Presenting the estimates entitled “Budget of exponential growth and inclusive prosperity” at the floor of the House, yesterday, Mbah said the proposed estimates comprised N837.9 billion capital expenditure, representing 86 percent of the budget estimates and a recurrent expenditure component of N133.1 billion, representing only14 percent of the budget.
This surpases the2024 budget figure of N521.5 billion, consisting of N414.3 billion capital expenditure, representing 79 per cent of the total budget and N107.2 billion recurrent expenditure, representing about 21 percent.
However, like the 2024 budget, the 2025 budget proposal emphasises huge investment in education as well as basic but critical infrastructure and amenities like roads and bridges, water supply, transport services, energy, modernisation and digitisation of public services and associated processes, with the education sector getting a lion-share of N320.6 billion, representing over 33 percent of the total budget for two consecutive years.
Mbah said this was in line with his administration’s target of poverty eradication and an inclusive development model, which ensures that no one or segment of the society is left behind.
The governor equally announced a growth in the state’s Internally Generated Revenue (IGR) from N37.4 billion at the end of 2023 to N144.7 billion in September 2024, representing a radical 286.2 per cent increase in line with the administration’s deliberate effort to wean the state off reliance on Federal Account Allocation Committee (FAAC) allocations.
Addressing the House, Mbah said: “In crafting this budget, we have sought 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.
“This represents an 86.4 per cent increase from the 2024 revised budget.
“The budget is broken down as follows: N133,140,000,000 as recurrent expenditure and N837,944,000,000 as capital expenditure.”
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.
“The recurrent revenues for 2025 are broken down as follows: opening balance – N32,000,000,000, 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, this translates to a net recurrent revenue of N559,039,000,000, which is thus transferred to the Capital Development Fund.
“The total capital expenditure for the year 2025 is projected at N837,944,000,000 as against N414,334,120,000 for the 2024 revised budget. The current capital expenditure estimate will be funded from the sum of N559,039,000,000 to be transferred from the Consolidated Revenue Fund, and the capital receipts of N278,905,000,000 to be realised 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.”
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In terms of broad sectors, the economic sector got the lion’s share of N462 billion, representing 55.1 percent of the capital expenditure, followed by the social sector with N345.7 billion, representing 41.2 percent.
In terms of specific sectors, education got 33.2 percent, 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 for that sector…”
This represents 78 percent of the social sector of the budget and 33.2 percent of capital expenditure this year.”
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 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 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.
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 N37.4 billion at the end of 2023.
However, as at September 2024, the state’s IGR had drastically increased to ₦144.7 billion, representing a 286.2 per cent increase, expressing confidence that it would surpass N200 billion 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 percent. Of this amount, N178,354,494,502.47 related to statutory receipts, while N136,700,000,000 related to capital receipts and N144,796,814,894 to IGR.
“As at October, these inflows had been applied to expenditure with N382,427,929,564 as capital expenditure and N76,546,090,116.18 as recurrent expenditure. These translated to a budget performance of 88 percent. 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, 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,” he stated.
