Umuahia, Abia – Governor Alex C. Otti, OFR, on Tuesday laid before the Abia State House of Assembly a proposed ₦1.016 trillion budget for the 2026 fiscal year, dubbed the "Budget of Acceleration and New Possibilities."

This ambitious plan, presented on November 25, 2025, represents a 13% increase from the 2025 appropriation of ₦750.28 billion and underscores the administration's drive to fast-track infrastructure renewal, human capital development, and economic diversification in the state.

In his address, Governor Otti emphasized the budget's alignment with the New Abia project, allocating 80% (₦811.8 billion) to capital expenditure focusing on transformative projects and 20% (₦204.4 billion) to recurrent costs.

This capital-heavy approach, a hallmark since Otti's 2023 inauguration, aims to consolidate gains from the outgoing year while addressing fiscal realities like revenue shortfalls and unforeseen contingencies.

The budget prioritizes education, health, and infrastructure as pillars of sustainable growth, with over 35% of the total outlay dedicated to these areas:

– Education (20% – ₦203.2 billion): The largest allocation supports recurrent needs for 15,000 teachers and capital initiatives like constructing 17 model primary/secondary schools, three technical colleges, staff quarters, and ICT labs in over 100 public schools.

Tertiary institutions, including Abia State University Uturu, Ogbonnaya Onu Polytechnic Aba, and Abia State College of Education Technical Arochukwu, receive ₦52.8 billion for hostels, lecture theaters, and staff welfare. This builds on 2025's teacher recruitment (5,394 hired, 4,000 more ongoing) and doubled enrollment under free basic education.

– Health (15% – ₦149.7 billion): Funds will equip 23 facilities with life-saving equipment, renovate seven general hospitals, and advance manpower training. Key 2025 achievements include retrofitting 200 primary healthcare centers, reviving Aba and Arochukwu General Hospitals, and launching the Abia Health Workers Salary Scale (ASHWOSS) for 771 new recruits. Enrollment in the formal health insurance scheme hit 120,000, earning Abia top ranking for health emergency preparedness.

– Infrastructure and Works (16.7% – ₦169.3 billion): A major push for road networks includes the Umuahia-Ikot Ekpene Road, Ahiaeke-Okwuta-Bende Road, and others like Nkata-Amaeke and Agbo-Umueze Roads. This extends 2025's completion of over 600 km of roads, including Port Harcourt Road and the 45 km Umuahia-Uzuakoli-Abariba stretch, leveraging the Ministry of Works' engineering corps to cut costs.

– Transport (₦11.1 billion): ₦6 billion for 80 electric-powered 40-seater buses, plus inter-modal terminals and bus shelters, following the delivery of the first 20 units.

Other sectors, including agriculture (data-driven farmer support for 2,000+ smallholders), energy (advancing the Abia Electricity Law and regulatory agency), youth empowerment, and environmental protection, receive over ₦229 billion collectively. The budget targets poverty reduction through job creation, enterprise growth, and reviving dormant assets like rubber and palm plantations.

Otti projected total revenue of ₦607.2 billion, with internally generated revenue (IGR) surging to ₦223.4 billion—up from ₦20 billion pre-2023—driven by infrastructure boosts and tech-enabled collections.

Federal allocations (FAAC: ₦83.2 billion; VAT: ₦67.1 billion) and grants (₦26.5 billion) fill the rest, leaving a ₦409 billion deficit to be bridged via concessional loans strictly for capital projects. Recurrent spending will be fully IGR-funded, ensuring no borrowing for salaries or overheads.

Otti reiterated, "We shall borrow only when absolutely necessary... for projects that will ultimately liquidate the loans."

In his speech, Otti reflected on 2025 progress: enhanced security enabling safe travel statewide; over 600 km of roads restored; tertiary care advancements at Abia State University Teaching Hospital; and rising civil service productivity with cleared pension arrears. Challenges like unmet projections were acknowledged, with a full 2025 performance report due by quarter's end.

"Development is about the sequence of progress," Otti stated, vowing to "unleash the genius of this land."