Otti proposes N1.16trn for Abia 2026 budget, allocates 80% to capital projects

By Steve Oko

ABIA – Governor Alex Otti has presented a N1,016,228,072,652 budget proposal for the 2026 fiscal year to the Abia State House of Assembly, christened the “Budget of Acceleration and New Possibilities.” The proposal represents a 13% increase over the 2025 budget of N750.28 billion.

Highlighting the state’s development priorities, Otti said the budget reflects his administration’s commitment to rapid socio-economic growth through investments in infrastructure, social services, and security.

A breakdown of the proposed budget shows that N811.81 billion, or 80% of the total outlay, is allocated to capital expenditure, marking a 32% increase from the N726.4 billion earmarked for capital projects in 2025. Recurrent expenditure is projected at N204.41 billion (20%), a 33% rise from last year’s N136 billion, to support administrative functions and accommodate the addition of thousands of new employees to the payroll.

The education sector remains a priority, receiving 20% of the total budget, amounting to N203.2 billion. Of this, N150.4 billion will cover recurrent costs, including salaries for about 15,000 teachers, while the remaining allocation will fund the construction of 17 model primary and secondary schools and three technical colleges for vocational training programs.

Road construction will receive N169.3 billion, representing 16.7% of the capital expenditure.

On revenue, Otti projected N83.2 billion from the Federation Accounts Allocation Committee (FAAC), N67.1 billion from VAT collections, N26.5 billion from grants and aids, and N168 billion from other federal channels. Internally generated revenue is expected to contribute N223.4 billion, which will primarily service recurrent expenditure.

“The combined revenue projection from internal and external sources for 2026 is N607.2 billion, leaving a balance of N409 billion. The deficit, 40% of the total budget, will be financed through concessionary loans,” Otti explained. He assured that borrowing will be limited to capital expenditure and not for recurrent spending.

Speaker of the House, Rt. Hon. Emmanuel Emeruwa, commended the governor for his development strides and prudent financial management, assuring that the budget would be expeditiously considered and passed. The Deputy Governor, Engr. Ikechukwu Emetu, and members of the State Executive Council accompanied the governor to the Assembly.

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