From Lateef Taiwo with Correspondent Reports

Gov. Peter Mbah of Enugu State, on Tuesday, presented a proposed record-breaking N971 billion budget estimate bill for the 2025 Fiscal Year to the Enugu State House of Assembly.

Presenting the budget estimate bill entitled: “Budget of Exponential Growth and Inclusive Prosperity”, Mbah said the proposed estimates comprised N837.9 billion Capital Expenditure, representing 86 per cent of the budget estimates, and a Recurrent Expenditure component of N133.1 billion, representing only 14 per cent of the budget.

It would be recalled the proposed estimate topples the record-holding 2024 budget estimate 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 per cent.

However, like the 2024 budget, the 2025 budget proposal emphasized huge investment in education as well as basic but critical infrastructure and amenities like roads and bridges, water supply, transport services, energy, modernization and digitization of public services and associated processes.

The Education sector is getting a lion-share of N320.6bn, representing over 33 per cent of the total budget for two consecutive years.

Mbah said that 2025 proposed budget estimate was in line with his administration 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.

Mbah said, “In crafting this budget, we have sort to continue to lay the right foundation in Enugu State 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 N971.1 billion as against the budget for 2024 fiscal year which totaled N521.6 billion.

“This represents an 86.4 per cent increase from the 2024 revised budget.

“The budget is broken down as follows: N133.1 billion as Recurrent Expenditure and N837.9 billion as Capital Expenditure.”

On sources of revenue, he said that the area of revenues, “we estimated that total Recurrent revenues during 2025 will amount to N692.2 billion as against the approved revised provision for 2024 of N383.8 billion.”

According to him, the Recurrent revenues for 2025 are broken down as follows: opening balance – N32 billion; Internally Generated Revenue (IGR) – N509.9 billion; statutory revenue – N48.7 billion exchange rate differential – N26.6 billion; and Value Added Tax (VAT) – N74.9 billion.

“With the total Recurrent Expenditure at N133.1 billion this translates to a Net Recurrent Revenue of N559 billion which is thus transferred to the Capital Development Fund.

“The total Capital Expenditure for the year 2025 is projected at N837.9 billion as against N414 billion for the 2024 Revised Budget.

“The Current Capital Expenditure estimate will be funded from the sum of N559 billion to be transferred from the Consolidated Revenue Fund, and the Capital receipts of N278.9 billion to be realized as follows: External and Internal Aids and Grants – N15 billion; other receipts – N80.2 billion; Domestic Loans/Borrowings receipts – N55 billion and International Loans/Borrowings – N128.5 billion.”

Meanwhile, in terms of broad sectors, the Economic Sector got a lion share of N462 billion, representing 55.1 per cent of the Capital Expenditure, followed by the Social Sector with N345.7 billion, representing 41.2 per cent.

Mbah said that in terms of specific sectors, Education got 33.2 per cent, the largest chunk, in sync with “my administration’s effort to eradicate poverty and graduate the state to a knowledge-based economy.”

The governor said, “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 N320.6 billion for that sector. This represents 78 per cent of the social sector of the budget and 33.2 per cent of our Capital Expenditure this year.”

Mbah explained that the 2025 budget would also focus greatly on health, road infrastructure, transport, agriculture, and water sectors, among others.

He said, “There can be no economic growth without quality healthcare. This is why we are spending N45.8 billion 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 N213.1 billion 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 N82.3 billion in the agricultural and agro-industrialisation sector this year.

“In the area of Transport, we will be spending a total of N41.1 billion to expand Enugu Air with the acquisition of four 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 (people of Enugu State).”

Giving a breakdown of the state’s IGR and overall performance of the 2024 budget, Mbah noted a remarkable increase in the state’s IGR since the inception of his administration, explaining that while the state’s IGR stood at N26.8 billion in 2022, the administration increased 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, and I am confident that it would surpass 200 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 N459.8 billion which comes to a budget performance of 88 per cent.

“Of this amount, N178.4 billion related to Statutory Receipts, while N136.7 billion related to Capital Receipts and N144.8 billion to Internally Generated Revenue.

“As at October, these inflows had been applied to Expenditure with N382.4 billion as Capital Expenditure and N76.5 billion as Recurrent Expenditure.

“These translated to a budget performance of 88 per cent. 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.

Receiving the budget estimate bill, the Speaker of Enugu State House of Assembly, Hon. Uchenna Ugwu, promised early passage of the budget by the House to sustain the governor’s development strides.

“Since you have demonstrated enormous capacity in 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 said.