Otti unveils Abia Assembly’s N567.2b budget for 2024
Governor Alex Otti has submitted a budget proposal of N567,240,095,972.00 for the 2024 fiscal year to the Abia State House of Assembly. During the presentation of the Appropriation Bill titled “Budget of New Beginning,” Otti emphasized the intentional alignment of key budgetary items with the state’s priorities.
Additionally, Governor Otti disclosed a salary increase for Abia State workers, asserting that it has been incorporated into the estimated 2024 budget. Upon scrutinizing the budget, it became apparent that there is a significant N400 billion increment compared to the current budget of N160 billion.
Governor Otti clarified that while the nominal figure reflects a substantial increase from the 2023 estimate of N160.5 billion, considering inflation and the depreciation of the naira’s value, the actual impact is markedly different.
The Governor specified that a significant portion of the budget, amounting to over 84%, is earmarked for capital expenditure, while the remaining 16% is allocated for recurrent expenditure.
He highlighted a notable shift in spending direction for the 2024 budget, emphasizing an increase from the 2023 projection where 53% of the budget was designated for capital expenditure.
In the upcoming fiscal year, the aim is to allocate 84% of the total expenditure to capital projects, with 16% directed towards recurrent expenditure, contrasting with the 47% allocated in the 2023 estimates. Governor Otti also outlined specific targets, intending to allocate 20% and 15% of the aggregate budget spending to education and health, respectively.
Furthermore, the Governor provided an estimated revenue projection of N166 billion, explaining that the anticipated deficit will be covered through borrowing.
He detailed the proposed figure, stating that the government’s estimated total revenue amounts to N166,077,717,058. This includes income from various sources such as Internally Generated Revenue (IGR) channels, the Federation Accounts Allocation Committee (FAAC), grants from multilateral organizations, and other revenue streams available to the state government throughout the accounting year.
“We intend to cover the deficit of N401,162,378,914 through a combination of new borrowings, estimated at N385,271,027,214.
Approximately 50% of this borrowing will be obtained externally, while the remaining portion will be sourced domestically.” Governor Otti pledged a prudent utilization of every loan acquired by the government, emphasizing that such funds must be exclusively allocated to capital projects.
It is crucial to emphasize that all borrowing in the 2024 fiscal year will be strictly dedicated to capital development projects, particularly those with a direct impact on the state’s economy, such as infrastructure, educational institutions, and healthcare facilities.
The expectation is that these projects will yield substantial returns over the medium to long term, enabling the state to fulfill its obligations to creditors smoothly and ultimately repay the loans in due course.
Governor Otti assured the Speaker, Honorable members, and every resident of Abia that, during his tenure, no funds will be borrowed to finance recurrent expenditure.
He emphasized that any borrowing undertaken will be negotiated under terms that are favorable to the state.
He further clarified that the imperative to revitalize deteriorating infrastructure for economic recovery has compelled the state to seek external funding.
“The reconstruction of the state’s public infrastructure demands a targeted financial approach that is currently beyond our immediate capacity within the state. Therefore, borrowing is essential to finance projects that will jumpstart the economy and enhance our competitiveness globally.”
For the 2024 fiscal year, the state intends to allocate 44.76% of the budget to the economic sector, with a significant portion of resources allocated to works (16.97%), land and housing (9.9%), agriculture (5.12%), and finance (5.23%).
Governor Otti emphasized that substantial infrastructural development is anticipated in 2024, as outlined in the budget estimate. “In the upcoming financial year, we will allocate significant resources to the reconstruction and rehabilitation of key roads along the state’s major economic corridors.”
“The budget incorporates provisions for the completion of ongoing projects initiated in 2023, such as Port Harcourt Road in Aba, Ossah Road, Umuahia-Uzuakoli-Abariba-Ohafia Road, Ozuabam-Ndi Okereke-Arochukwu Road, the dualisation of Umuikaa-Umuene-Omoba Road, the Dualisation of Owerrinta-Umuikaa Road, Nunya-Eluama-Isuikwuato Road, Onuimo-Abia Tower Road, and others.
Additionally, it encompasses the initiation of new road projects in various parts of the state.” Otti pledged transparency in implementing the budget, urging lawmakers to promptly review and pass it for the state’s benefit.
“Crucially, citizens and stakeholders will have the opportunity to oversee fund utilization and assess the projects’ impact on their communities, ensuring transparency. As a responsive government, your input will always be valuable in our decision-making process.”
In response, the Speaker of the State House of Assembly commended the “robust budget,” anticipating positive impacts on the state’s economy.
He highlighted this as the first time Abia would have such a sizable budget and assured that lawmakers would thoroughly and expeditiously review the proposal to prevent any hindrance to the state’s progress.
Governor Otti was accompanied during the budget presentation by several National Assembly members from the state, including Hon. Obi Aguocha, Rep. Amobi Ogah, Rep. Ginger Onwusibe, Hon. Munachim Alozie, and Rep. Chris Nkwonta. Members of the State Executive Council and prominent government officials, including former Speaker of the House, Rt. Hon. Stanley Ohajuruka, also joined the Governor.