Governor Alex Otti Presents Budget Estimates of N750 Billion For 2025 Fiscal Year to Abia Assembly.

By Emma Nwokonna On Dec 10, 2024

SUSTAINING THE MOMENTUM

Being the Text of the 2025 Budget Presentation Speech by Governor Alex C. Otti, OFR, on the Floor of the Abia State House of Assembly in Umuahia on Tuesday, December 10, 2024

Protocols

Mr Speaker, Honourable Members of the Abia State House of Assembly, fellow Abians, it is my privilege to return to the hallowed chambers of the State House of Assembly to present a draft of the 2025 Budget of the Abia State Government for consideration and other relevant legislative processes by the elected representatives of Ndi Abia from the 24 State Constituencies. Let me begin on a note of gratitude to Mr Speaker and his honourable colleagues seated here for their patriotic service to the close to 5 million individuals who live in this great state called Abia. Thank you for rising above the differences in political party affiliations in the understanding that before we became politicians and joined different political groups, we were all Abians and no matter how far and fast we travel in pursuit of our individual political aspirations, we shall remain Ndi Abia. This Administration has achieved great milestones on major development frontiers in the last 18 months because of the excellent working relationship we have cultivated with Mr Speaker and the Honourable Members of this house. You are part of the New Abia story and with your continuing support; we shall do much more for our people who have trusted us with the sacred responsibility of being their leaders and representatives.
Beyond the opportunity to present the budget proposal for the 2025 fiscal year for consideration by Mr Speaker and his honourable colleagues, occasions like this are also a great time to say a word of gratitude to Ndi Abia, for their growing support and goodwill. The making of a New Abia, the changing of our social narratives and the new level of governance expectations are the products of your trust and faith in the promises we made while we traversed communities selling our manifesto and soliciting for votes.
On the testimony of millions of objective Abians in rural and urban communities, we are reasonably on track to meet the expectations of the people on several development metrics especially with the restoration and expansion of public infrastructure, prompt and regular payment of salaries and pensions, security of lives and property, improved environmental status of our major urban centres and responsiveness to matters of public interest. By refocusing governance priorities to reflect the collective aspirations of the people, we have been able to drastically cut down the obstacles to the general productivity of our population.
The gains of our people-first agenda are expressed in the fact that over the last 12 months, Abia rose to become one of the top 3 destinations for foreign investments in the country, just behind Lagos and Abuja. The State’s indebtedness to contractors has also shrunk to zero even as we continue to repay debts owed by previous administrations. I am glad to say that we are not just running with a very efficient governance template, we have also shown great discipline in the management of resources, spending only on projects with high social and economic returns such as Port Harcourt, MCC-Old Express, Cemetery and Omuma Roads all in Aba. The reconstruction of the Umuahia-Uzuakoli-Akara-Abiriba- Ohafia-Arochukwu road will ease the age-old nightmare that frustrated many travellers; just as a new ray of light has emerged for residents and businesses along the Obohia and Ohanku Roads where we are creating new possibilities after years of neglect and abandonment.
The Aguiyi Ironsi Boulevard, Umuahia, which we commissioned in May this year, speaks to our determination to raise the value and appeal of the stock of public infrastructure in the State. In the last 2 weeks, we have flagged off new road projects and commissioned several completed ones as we intend to finish the year as strongly as we started.
Our extensive scope in the conception and execution of public infrastructure projects has led to the remodelling and re-purposing of several dilapidated public buildings and the construction of new ones. The two Secretariat Complexes located not very far from this place, JAAC Building, and Ministries of Agriculture, and Budget and Planning are looking totally different today because we want the civil servants in the State to work from a very conducive environment so they can effectively contribute to the New Abia agenda.
The reconstruction and expansion of Michael Okpara Auditorium, rebuilding of the Secretariat Complex of the Office of the Secretary to the State Government and other strategic public building projects will be completed in the early part of 2025. In addition to creating working spaces that encourage productivity, we are committed to banishing the ghost of the old order which bears its marks in poor quality jobs, dilapidation and other terrible stamps of mediocrity plastered across several public buildings in the State before now.
Mr Speaker, you may recall that this Honourable House gave a nod to our proposal to channel 35% of the entire budgetary outlay for the 2024 fiscal year to the education and health sectors. I am glad to report that great strides have been recorded in these sectors through extensive investments in infrastructure development projects in our schools and healthcare facilities, capacity building programmes for personnel, payment of staff emoluments, and other initiatives that have led to improved service delivery in our education and health institutions.
May I also bring to the attention of Mr Speaker and this Honourable House that we are currently working hard to complete the renovation and remodelling of 200 primary healthcare facilities. These projects, I am quite happy to report, are happening simultaneously across the 184 wards so as to guarantee spread and ensure that no community is left out in the efforts to improve access to basic healthcare delivery services in all parts of the State.
Mr Speaker, we have also taken steps to reshape the agricultural landscape to reflect the realities of the times. While most governments harp on the importance of giving agriculture greater attention, we have taken the bull by the horn in our approach. Earlier in the year, we sponsored over 300 individuals drawn from different communities to a world class agro-incubation facility in Nasarawa State to learn new skills for success in different agricultural ventures.
On returning to the State after weeks of intensive, hands-on practical training, we earmarked N600 million for disbursement to the trainees to enable them start and expand their individual agro-ventures and ultimately contribute to the volume of agricultural output from the State. Also within the year, we took steps to recover several State-owned agricultural assets that had either been appropriated by private entities without any returns to the State or entirely abandoned. Efforts are presently in place to revive these farm holdings and turn them into centres of excellence in agro practices.
Our footprint in Agriculture is equally visible in the construction and reconstruction of several rural roads across the State’s agricultural belt. The Arochukwu-Ndi Okereke- Ozuabam, Nkpa and Nunya Roads are worthy of mention in this regard. On completion, these roads will increase the value of the State’s agricultural output by more than 300% through new investments, access to urban markets and drastic reduction in post-harvest losses. With the flag off of the Ntigha-Nbawsi-Umuala Road and the Umuopara Ring Road in the last two weeks, one cannot but predict a very bright future for the State’s agro-industry by the time these roads are completed in the next 12 months.
Mr Speaker, Honourable House Members, may I equally use this auspicious occasion to inform Ndi Abia that major investors in the global agro value chain have taken note of our potential and just recently, the State signed a Memorandum of Understanding with a consortium that proposes to invest 120 million US dollars in the production, processing and export of palm produce from the State. This investment is projected to employ an estimated 1, 000 individuals directly and another 10, 000 indirectly over the next five years.
Mr Speaker, our elected representatives, we understand that nothing can work in an atmosphere of insecurity. This awareness explains why we made security of lives and property in all parts of the State our number one priority from the very minute we took the oath of office. While there had been a few unfortunate developments over the past

12 months headlined by the painful loss of our gallant security personnel and other innocent citizens, I can, however, say that we continue to respond very effectively to all forms of security threats and disturbances in the State.

The message has since been sent that Abia is a no-go-area for anyone who finds it difficult to operate within the provisions of the Constitution of the Federal Republic of Nigeria. On a happy note, Mr Speaker, I can authoritatively report that we have actively restored order to several communities that were once under the control of non-state actors. People are now free to go about their legitimate businesses in all parts of the State without fear of harassment or attacks by anyone or group.
Mr Speaker, I am delighted to announce that while we have not achieved 100% of our target in the 2024 fiscal year because of a combination of factors, mostly external, we achieved very impressive outcomes on all our key governance priorities. More fundamentally, we have also noted a few internal factors that may have limited our drive to reach 100% of our targets. We have since taken steps to address them as we hope to move faster and stronger on all fronts in the coming year.
Our development framework for the restoration of Aba as a prime destination for commerce and industry in the West African region is gaining momentum. Those visiting the city or even passing by can see at first glance that something fundamental has shifted in the socioeconomic foundations of the great Enyimba City. Beyond the improved stock of social infrastructure, especially road networks, there is also a remarkable difference in the environmental outlook.
In addition to the giant strides that have been recorded in Aba since the beginning of the year, Mr Speaker, it is also my privilege to announce to this Honourable Assembly that we are changing the urban landscape of Umuahia through massive investments in social infrastructure and public sector support for local businesses. Our goal is to transform the city into a major urban destination for the ICT, industrial manufacturing, education and healthcare delivery ecosystems.
The New Abia development framework is holistic because we do not want to leave any part of the State behind. This explains why we came to this Honourable House earlier in the year with the Greater Ohafia Development Authority (GODA) Bill. Just like the Greater Aba Development Authority Bill which this House passed into law one year ago, GODA is structured to stimulate the socioeconomic transformation of the northern district of the State by driving public and private sector investments to the region. Mr Speaker, I am happy to inform this hallowed Assembly that following the passage of the bill and my subsequent assent, the Management Board of GODA has since been constituted. We expect to see wholesome competition and cooperation as may be relevant amongst the 3 development vehicles for Aba, Umuahia and Ohafia.
To promote justice delivery in all parts of the State, the State Government is working closely with the Judiciary in building 17 new modern court complexes in all the LGAs. These court buildings shall be equipped with autonomous power and water supply systems, digital infrastructure and all other features that will support the speedy dispensation of justice by our courageous and conscientious judicial officers.
As you would agree with me Mr Speaker, we have clearly not left any sector behind in the push to build a State that works for all. We have not only addressed the injustice of non-payment of salaries and pensions, we have gone a step further to turn things around by creating a system that makes Abia workers and retirees amongst the earliest to be consistently paid their entitlements in the entire federation on a monthly basis. It does not matter whether you are a teacher or an agricultural extension service worker, or perhaps a retiree, we have consistently paid anyone and everyone who is actively working or retired from the employ of the State Government on or before the 28th of every month. Like we did in December 2023, I have since directed that salaries and pension for December 2024 be paid by the 20th of this month, in addition to a 13th month salary package. I have to admit that it has not been easy for our workers considering the spiralling rate of inflation and other economic headwinds which affect their purchasing power but we have also been quite responsive in ameliorating these difficulties; firstly by the introduction of special incentives for the workers at regular intervals and the implementation of the new N70, 000 minimum wage as we promised.
Mr Speaker, we have returned to this Honourable House as we begin to look ahead to the 2025 fiscal year. Having noted the decent progress we recorded with the budgetary outlay of N523 billion which this House approved for the 2024 financial year, I hereby present for the consideration of Mr Speaker and the Honourable Members, a total budget proposal of seven hundred and fifty billion, two hundred and eighty two million, two hundred thousand naira only (N750, 282, 200, 000.00) for the 2025 financial year. This figure represents about 30% increase in the 2024 figures and indicates the scope of our progressive aspirations. We have taken into account, major economic headwinds such as inflation and exchange rate instability — two complex subjects that have dealt very harsh blows to our fiscal plans and proposals. At any rate, we remain optimistic that the economic environment will be more stable in the new year even as we work hard to control the variables that are within our powers.
In the 2025 financial year, N611.7 billion, representing 82% of the entire budget outlay, will be channelled into capital projects to continue to drive the long-term socioeconomic transformation of the State, building on the momentum that had already been recorded in the last 18 months since we assumed office. Furthermore, N138.6 billion representing 18% of the total envelope, shall be channelled into recurrent expenditures to cover personnel cost, social benefits, overhead costs and debt servicing. Looking at the figures for 2024, we are raising the size of the proposed capital expenditure for 2025 by 29% while the outlay for recurrent spend is raised by about 34%.
Mr Speaker, we have set out to make another bold statement of our intent to climb to the top of socioeconomic development ladder with some of the most important capital projects that had been captured for execution in the 2025 budget. We have earmarked N13 billion for the setting up of agro-industrial processing zones in 3 local government areas of the State namely — Bende, Ukwa and Umunneochi. These projects shall signpost our game plan for the agricultural sector and the commitment to leverage agriculture to drive important economic outcomes such as job creation, wealth generation and foreign currency denominated receipts.
We have strategically budgeted sums in excess of N55 billion for various on-going and new road projects in the 2025 financial year. The road projects will cut across the 17 LGAs. The combined outlay for the sector will be used to pay for the construction of bridges and new roads, and the reconstruction and maintenance of existing road infrastructure in the urban and rural communities, and similar project undertakings by the State Ministry of Works.
Some of the landmark road projects captured in the budget document to be laid before this Assembly at the conclusion of my address include the Umuikaa-Umune-Omoba Road, Owerrinta-Umuikaa Road, Ohanze Ntighauzo-Abala Ibeme Akirikaobu Road, Mbala-Umuaku-Ngodo Road, Omuma Road with spur to Old Express, amongst others. We have also made provision for the construction of 170 kilometres of rural roads across the 17 LGAs of the State, with a target of 10 kilometres per local government. In Umuahia, we have made provisions for the rehabilitation and reconstruction of several road projects including the Umueze-agwu-Mbom, Nkata-Amaeke, Ahiaekeokwuta-Bende, Agbo-Umueze, Umueze Mbom, Umuoji, Umuafai-Lodu-Ahiaeke, Amauzukwu-Mbom Roads, and others.
The New Year will also see to the completion of many of our signature road projects with the most prominent being Port Harcourt Road Aba. The project will be due for commissioning in the first quarter of 2025. Umuahia-Uzuakoli road, Ndi Okereke – Arochukwu Road and others will also be due for completion within the New Year.
Mr Speaker, Honourable Members, recall that a very important promise we made to Ndi Abia on the campaign trail was the provision of potable water to residential homes and communities in the State. Today, I am glad to report that we have captured a N4 billion outlay which will on approval by this Honourable House, be channelled into the revamping and reticulation of 47km pipeline for the Umuahia Regional Water Scheme.
Just like last year, health and education sectors will receive about 35% of the budgetary outlay with 15% of the entire envelope going to the health sector, basic and secondary education get 14.63% while tertiary education will receive 5.42%. The highlights of the projects to be executed with the passage of this budget as presented include the rehabilitation and supply of equipment to 4 general hospitals across the State for N13 billion, N9 billion will go into the purchase of medical equipment for various health facilities, N8.6 billion will be channelled into the construction of the permanent site of the Abia State College of Health Science and Management Technology Aba, N5 billion will be used for construction projects at the new College of Nursing Sciences at the Umunneato General Hospital while another N3 billion will go into the construction of classroom blocks at the School of Nursing and Midwifery Amachara.
As Mr Speaker may have heard me say severally, education is not just at the centre of our governance agenda; a robust education sector will be our greatest gift to future generations of Ndi Abia. Every child to us is a great treasure so we shall be investing massively in all frontiers of learning to make our children competitive and ready for the demands of the new world.
In keeping with the determination of the Administration to make the learning environment safe for the pupils and their teachers, we have earmarked N29.5 billion for the construction of perimeter fencing in 262 schools across the State, this will not just keep criminals and marauders away from the schools, it will also curb the menace of appropriation of school land by unscrupulous individuals.
Also captured in the 2025 draft budget is a proposal to spend N14. 6 billion on the construction of reading rooms and libraries across the 184 wards in the State. This initiative is projected to revive the reading culture and encourage our people to discover the treasure in books.
The draft of 2025 budget has been comprehensively put together to capture the most important development priorities of our people. It might interest Mr Speaker and the members of this august Assembly to know that this budget has been prepared with the active input of Abians who participated at the various citizens’ engagement sessions put together by the State Ministry of Budget and Planning to share their expectations as individuals and groups.
The elements of the draft budget are anchored on a set of slightly optimistic fundamentals, using 2024 figures as our base. We project an increase in the State’s internally generated revenue (IGR) collection by 213% to N100.6 billion, a 96% rise in statutory allocation to N183.4 billion, 55% increase in grants to N25.5 billion and 35% rise in VAT to N55.1 billion. We shall finance the balance of N364.1 billion, representing about 51% of the total envelope through borrowing from domestic and multilateral channels. I may have to add at this point, as I did last year, that we shall not borrow a penny to finance recurrent expenditures. All borrowing shall happen only when absolutely necessary and shall be deployed for the execution of projects that will ultimately repay the loans. Mr Speaker, I am pleased to report that for the 2024 fiscal year, no funds has been borrowed till date but instead, we have taken steps to pay off old debts, while maintaining zero indebtedness to contractors.
Mr Speaker, let me conclude by informing this Honourable House that we have titled the document I shall lay before you, a “Budget of Sustained Momentum” because the key variables have been aggregated to keep us on the right trajectory as we continue the trans-generational race to the summit of the development ladder. I would appeal to our people to keep believing in the potential and promises of this great State.
Our governance framework is set up to run as a robust partnership model where the Government does its part by creating and sustaining the enabling social and economic superstructures to accelerate social prosperity while the residents and businesses pay their taxes and other statutory fees and levies to the Government as and when due as its share of the prosperity it has helped to create.
This Administration, as I had earlier mentioned, has shown great discipline in the management of our collective resources. We shall do better in the coming year to create an all-inclusive growth model. In this regard, a total of N18.9 billion has been earmarked for social benefits in the 2025 fiscal year. We shall use this sum to cater for the most economically vulnerable groups in our communities, providing structured support to individuals and families in great need as we work to build a society where no one or group is left behind.
Mr Speaker, I thank you once again for this great opportunity to talk to our people from this podium. I will now proceed to lay the draft of the 2025 Budget of the Abia State Government before this Honourable House for meticulous evaluation and speedy passage by the elected representatives of the millions of residents of Abia across the 24 State constituencies.
Thank you for your attention and may God bless Abia State.

Dr Alex C. Otti, OFR,
10/12/2024