Gov Mbah Presents N1.62trn ‘Budget of Renewed Momentum’ For 2026

Governor Peter Mbah on Tuesday laid before the Enugu State House of Assembly a landmark N1.62 trillion 2026 Appropriation Bill, signalling what he described as a shift from foundational reforms to accelerated, broad-based development.

The proposal tagged Budget of Renewed Momentum represents a 66.5% increase over the revised 2025 estimates. It allocates N1.296 trillion (80%) to capital expenditure and N321.3 billion (20%) to recurrent spending.

Mbah said the budget would be driven by an ambitious revenue framework comprising N870 billion in internally generated revenue, N387 billion FAAC inflow, and N329 billion in capital receipts.

Sectoral Allocations

A breakdown shows the Economic Sector receiving N825.9 billion (51%), followed by the Social Sector with N644.7 billion (40.1%). The Administration, Justice, and Regional Development sectors are allotted N128 billion, N15.8 billion, and N2 billion, respectively.

Mbah described the heavy investment in the Economic Sector as “strategic and deliberate,” stressing that agriculture, industry, and trade remain central to the state’s goal of achieving a seven-fold GDP expansion.

Infrastructure and Transportation

Key projects include the construction of 1,200 urban roads, extensive rural road networks, and completion of major dual carriageways such as:

Owo–Ubahu–Amankanu–Neke–Ikem Road

Abakpa Nike–Ugwogo Nike–Ekwegbe–Opi–Nsukka Road

Enugu–Abakaliki Expressway

The state will also expand Enugu Air’s fleet to 20 aircraft, with three additional planes expected before the end of 2025. Five new transport terminals are planned for Emene, Udi, Awgu, Four Corners (Ozalla) and Obollo-Afor.

Housing development will take up 15% of the budget, targeting 15,000 mass housing units and accelerated work at the New Enugu City.

Agriculture and Social Services

The budget advances the rollout of 20-hectare farm estates across all 260 wards, part of an aggressive agricultural expansion strategy.

Education retains the largest share of the Social Sector, taking 32.27% of the entire budget. The state will shift from Smart Primary Schools to establishing Smart Secondary Schools and TVET colleges in 2026.

Mbah defended the sustained investment in education, insisting that underfunding would impose “a far higher future social cost.”

Health receives 10% of the budget, while N20 billion is earmarked to clear longstanding gratuity arrears. The state will also commit N11 billion to the second phase of its security surveillance system.

2025 Fiscal Performance

Reviewing the 2025 fiscal year, Mbah said the state had spent N806 billion, representing 83% performance against the revised N871 billion budget and 97.5% utilisation of total receipts.

He noted that Enugu’s IGR is projected to surpass N400 billion—the highest in its history and a 221.6% rise over 2024.

FAAC Boost and National Economic Reforms

Mbah credited President Bola Tinubu’s economic reforms for an improved fiscal environment. Enugu received N230 billion in FAAC allocations, exceeding projections by over 50%.

He cited the impact of subsidy removal, exchange-rate unification, and fiscal tightening on inflation, interest rates, and currency stability, noting that Nigeria’s foreign reserves have climbed to $46 billion.