In a move poised to redefine Enugu State’s economic landscape, Governor Peter Mbah has proposed a historic N971 billion budget for the 2025 fiscal year. This ambitious plan, which aims to spur exponential growth and inclusive prosperity, is built on the pillars of extensive capital expenditure, impressive gains in internally generated revenue, and a clear vision to eradicate poverty in the state.
The proposed budget, entitled the “Budget of Exponential Growth and Inclusive Prosperity,” was presented by Governor Mbah to the Enugu State House of Assembly on Tuesday. The budget aims to invest significantly in education, infrastructure, healthcare, agriculture, and other key sectors, with a focus on transforming Enugu into one of the top three states by GDP in Nigeria.
Breakdown of the N971 Billion Budget Proposal
Governor Peter Mbah’s budget for the 2025 fiscal year stands as the largest in Enugu State’s history, totaling N971 billion. The budget is divided into two main components: N837.9 billion allocated for capital expenditure and N133.1 billion for recurrent expenditure. The allocation to capital expenditure represents 86% of the total budget, highlighting the administration’s commitment to long-term growth and development.
This marks a significant increase from the previous year’s N521.5 billion budget, which was comprised of N414.3 billion for capital expenditure and N107.2 billion for recurrent expenditure. The new budget represents an 86.4% increase over the 2024 budget, which already broke previous records in terms of scale and scope.
In his presentation, Governor Mbah emphasized that the budget is designed to elevate Enugu State’s economy, create job opportunities, and ensure an inclusive model of development. The education sector is a key beneficiary of this budget, receiving N320.6 billion—over 33% of the total allocation—underscoring the administration’s goal of building a knowledge-driven economy and lifting citizens out of poverty.
Focus on Education, Infrastructure, and Health
The emphasis on education in the 2025 budget is evident, with the sector receiving the highest allocation for two consecutive years. Governor Mbah stated, “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.” With an allocation of N320.6 billion, the government aims to provide quality education infrastructure, train more teachers, and improve learning outcomes, ensuring that no citizen is left behind.
Healthcare also remains a top priority for the state government, with N45.8 billion allocated to improving access to quality healthcare for all residents. Governor Mbah noted that healthcare is crucial to the state’s economic growth, explaining that investments in health would help create a healthier and more productive workforce.
In addition, N213.1 billion has been allocated to road infrastructure, which will be used to build and refurbish critical roads across the state. Governor Mbah’s vision for Enugu includes the modernization of transport systems to ease movement and facilitate trade, both within and outside the state. The transport sector is set to receive N41.1 billion, part of which will be invested in expanding Enugu Air and floating a new taxi scheme in collaboration with the private sector.
Impressive Growth in Internally Generated Revenue (IGR)
One of the most impressive aspects of the budget proposal is the growth in Enugu State’s Internally Generated Revenue (IGR). Governor Mbah reported that the state’s IGR increased from N37.4 billion at the end of 2023 to N144.7 billion as of September 2024—a staggering 286.2% increase. This growth is in line with the administration’s deliberate effort to reduce reliance on federal allocations and build a self-sustaining economy.
The governor attributed this remarkable growth in IGR to a series of strategic initiatives that have enhanced tax collection efficiency and encouraged private investment in the state. The focus has been on creating an enabling environment for businesses to thrive, which in turn boosts the state’s revenue.
Budget Allocation for Key Sectors
The 2025 budget also outlines substantial investments in other sectors of the economy. The economic sector received the highest allocation, with N462 billion earmarked for projects that aim to drive economic growth, representing 55.1% of the capital expenditure. The social sector, which includes education, healthcare, and social welfare programs, received N345.7 billion, representing 41.2% of capital expenditure.
In agriculture, Governor Mbah’s administration has allocated N82.3 billion to boost food production and reduce inflation caused by high food prices. He noted that food inflation is a major driver of core inflation in Nigeria, and increasing food production is essential for moderating the current high inflation levels.
The governor also announced N213.1 billion for the construction and refurbishment of roads and other infrastructure, aimed at enhancing the state’s connectivity and accessibility. “We will continue our relentless advance towards our target to build or refurbish all key roads across the state by 2031,” said Governor Mbah.
2024 Budget Performance: A Prelude to 2025 Success
Governor Mbah shared insights into the performance of the 2024 budget, which he described as commendable despite challenging economic conditions. As of October 2024, the state’s total revenue stood at N459.9 billion, representing an 88% budget performance. Of this revenue, N144.8 billion came from IGR, N178.3 billion from statutory receipts, and N136.7 billion from capital receipts.
Capital expenditure for 2024 was N382.4 billion, while recurrent expenditure was N76.5 billion. Governor Mbah expressed optimism that the state’s IGR would surpass N200 billion by the end of 2024, thereby creating a strong foundation for the 2025 fiscal year.
“Our progress this past year is commendable given the odds that were arraigned against the state economy. However, we are not yet ready to rest on our oars,” Mbah said, signaling his administration’s commitment to continuous improvement.
Assembly Promises Early Passage of the Budget
The Speaker of the Enugu State House of Assembly, Hon. Uchenna Ugwu, promised a swift passage of the budget, highlighting the importance of the proposed investments to the state’s growth. Hon. Ugwu praised Governor Mbah for his visionary leadership and commitment to transforming Enugu into a top-performing state in the country.
“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,” Hon. Ugwu stated.
Conclusion
Governor Peter Mbah’s N971 billion budget for the 2025 fiscal year is a testament to his administration’s determination to achieve exponential growth and inclusive prosperity in Enugu State. The budget’s focus on education, healthcare, infrastructure, and internally generated revenue demonstrates a commitment to laying a strong foundation for sustainable development. If successfully implemented, this budget has the potential to make Enugu State a model for other states in Nigeria and a beacon of hope for its citizens.
