Enugu Governor’s ₦971bn Budget for 2025 86% Higher than 2024, Despite Several Incomplete Projects

Confidence UbaniNovember 27, 20242 Mins read32

Image Credit: Gov. Peter Mbah via X

Governor Peter Mbah of Enugu State has presented a ₦971 billion budget proposal for 2025 to the State House of Assembly. The presentation was made on November 26, 2024, at the Enugu State House of Assembly. This proposal is an 86.2 per cent increase over the revised 2024 budget of ₦521.5 billion.

The 2025 budget, titled “Budget of Exponential Growth and Inclusive Prosperity,” allocated ₦837.94 billion for capital expenditure and ₦133.14 billion for recurrent expenditure. This makes it the largest budget in the history of Enugu State.

The education sector is set to receive ₦320.6 billion. This amount is intended to complete the 260 Smart Schools currently under construction across various wards and to improve tertiary and technical institutions. It will be recalled that this project was one of the major initiatives proposed in the 2024 budget. Out of the ₦134.59 billion allocated to education last year, ₦115.75 billion was earmarked for constructing the proposed Integrated Model Smart Schools. Despite the huge allocation, only one pilot Smart School is fully operational. Construction and technological installations at other sites have experienced delays.

The government has also proposed ₦213.1 billion for road infrastructure. The economic sector is set to receive ₦462 billion, while the social sector, which includes health, water, and transport, will get ₦345.7 billion.

The state plans to generate ₦692.18 billion through Internally Generated Revenue (IGR), Value Added Tax (VAT), and grants. IGR is expected to contribute ₦144.8 billion, while VAT is projected at ₦74.9 billion. However, these targets could simply be ambitious. In 2024, the state projected an IGR of ₦252.8 billion but had only realised ₦144.7 billion by September.

Governor Mbah said the 2025 budget deficit would be covered by borrowing and foreign loans. A notable project in the budget is the establishment of a state-owned airline, Enugu Air. The government plans to acquire four aircraft for ₦41.13 billion. Operations are expected to begin before the end of the year.

“Enugu Airline will be launched in a few weeks so that our brothers coming for Christmas will fly with our own airline,” Governor Mbah said.

Some have questioned the necessity of this project, given the existence of the federally operated Akanu Ibiam International Airport. The airport serves as the main international gateway for the South-East region. Critics also argue that similar ventures, such as Imo Air and Ibom Air, have yielded little to no profit for states, as such a state-owned airline may not be essential.

Other concerns remain about the execution of past projects. In 2024, the Ministry of Water Resources received ₦29.08 billion, but many water projects are still incomplete. Governor Mbah had promised to resolve water scarcity within 180 days of taking office. In November 2023, he inaugurated a water supply scheme meant to deliver 120 million litres of potable water daily to Enugu metropolis and its suburbs. Residents have reported that many water galleries installed under this scheme have been abandoned. Some have never functioned since installation.

Nonetheless, the 2025 budget proposal is awaiting reviewed and approved by the State House of Assembly.