Enugu State Governor, Peter Mbah, has unveiled a historic ₦971 billion budget proposal for the 2025 fiscal year, a significant increase from the ₦521.5 billion budget for 2024.
The budget, titled the “Budget of Exponential Growth and Inclusive Prosperity,” is aimed at fostering political, economic, and social development, with a strong focus on infrastructure, education, and key sectors such as agriculture, health, security, and energy transition.
Presenting the budget to the Enugu State House of Assembly on Tuesday, Mbah outlined that ₦837.9 billion (86%) of the total budget is earmarked for capital expenditure, while ₦133.1 billion (14%) will be allocated for recurrent spending. This represents a marked shift towards capital investment, with a sharp increase in infrastructure development aimed at supporting economic growth and creating new opportunities for private investment.
In line with his administration’s focus on inclusive development, Governor Mbah emphasized the importance of education, which continues to receive the largest share of the budget. The education sector has been allocated ₦320.6 billion, representing 33.2% of the total capital expenditure and over 33% of the entire budget for the second consecutive year. Mbah described education as the “sword and shield” in the fight against poverty, aiming to transform Enugu into a knowledge-based economy.
“Education is central to our development agenda,” Mbah said. “By investing in education, we are not only securing the future of our youth but also positioning Enugu as a leader in innovation and human capital development.”
The 2025 budget also reflects significant progress in the state’s financial independence. Governor Mbah reported a remarkable increase in Enugu’s Internally Generated Revenue (IGR), which surged from ₦37.4 billion in 2023 to ₦144.7 billion by September 2024—an impressive 286% increase. This growth aligns with the state’s ongoing efforts to reduce dependence on federal allocations and strengthen its fiscal autonomy.
The proposed budget also prioritizes the economic sector, with ₦462 billion (55.1%) allocated for infrastructure projects, including roads, bridges, and energy. The social sector, which includes health, water, and transport services, will receive ₦345.7 billion (41.2%) of the capital expenditure.
Further breakdown of the revenue sources includes ₦509.9 billion from IGR, ₦48.7 billion in statutory revenue, and ₦74.9 billion from Value Added Tax (VAT). The governor also outlined the financing of the capital expenditure, which will be funded through a combination of recurrent revenues, domestic loans, international loans, and grants.
“We are determined to position Enugu as one of the top three states in terms of GDP nationally and to eradicate poverty in our state,” Mbah declared. “Despite the challenging economic environment, we are confident that this ambitious budget will lay the foundation for exponential growth and prosperity for all.”
The governor further explained that the 2025 budget will also address key issues in the health, agriculture, and transport sectors, ensuring that Enugu continues to make progress in critical areas while fostering sustainable economic growth.
