Governor Peter Mbah has laid before the State House of Assembly a record-breaking ₦971 billion budget proposal for the 2025 fiscal year. The budget, aptly titled “Budget of Exponential Growth and Inclusive Prosperity,” represents a dramatic 86.4 percent increase from the 2024 revised budget and showcases a bold vision for transforming the state’s economic landscape.
The proposed budget demonstrates a strong emphasis on capital development, with ₦837.9 billion allocated to capital expenditure, constituting an impressive 86 percent of the total budget. The remaining ₦133.1 billion is designated for recurrent expenditure, reflecting the administration’s commitment to investing in long-term development projects while maintaining lean operational costs.
Perhaps most striking in the governor’s presentation is the remarkable turnaround in the state’s Internally Generated Revenue (IGR), which has surged from ₦37.4 billion at the end of 2023 to ₦144.7 billion by September 2024. This extraordinary 286.2 percent increase in IGR signals a successful shift away from dependence on federal allocations and demonstrates the effectiveness of the administration’s revenue generation strategies.
Education emerges as a cornerstone of the administration’s development agenda, securing the largest sectoral allocation of ₦320.6 billion, representing over 33 percent of the total budget. This substantial investment in education for the second consecutive year underscores the government’s commitment to transforming Enugu into a knowledge-based economy while addressing poverty through human capital development.
The budget’s financing structure reveals a sophisticated approach to resource mobilization. The government projects total recurrent revenues of ₦692.17 billion for 2025, a significant increase from the 2024 revised provision of ₦383.78 billion. This revenue projection includes an ambitious IGR target of ₦509.94 billion, alongside statutory revenue, exchange rate differential, and Value Added Tax contributions.
To bridge the funding gap, the administration has outlined a comprehensive capital receipts strategy totaling ₦278.9 billion. This includes ₦15 billion from external and internal aids and grants, ₦80.2 billion from other receipts, ₦55 billion from domestic borrowing, and ₦128.5 billion from international loans and borrowings.
In his address to the House, Governor Mbah emphasized the administration’s determination to elevate Enugu State to one of the top three states nationally in terms of GDP. This ambitious goal comes despite challenging economic conditions across the country, reflecting what the governor describes as a “bullish” approach to state development.
The Economic Sector receives substantial attention in the budget, with an allocation of ₦462 billion, representing 55.1 percent of capital expenditure. This is followed by the Social Sector, which receives ₦345.7 billion, accounting for 41.2 percent of capital spending. This distribution reflects a balanced approach to development, combining economic growth initiatives with social welfare programs.
Governor Mbah’s vision extends beyond mere financial allocations, presenting education as both a “sword” and “shield” in the state’s battle against poverty. The substantial education budget allocation demonstrates a strategic approach to poverty eradication through human capital development and the transition to a knowledge-based economy.
The 2025 budget proposal also emphasizes investments in other critical sectors, including health, road infrastructure, transport, agriculture, and water supply. This comprehensive approach suggests a holistic development strategy aimed at improving both economic indicators and quality of life for residents.
The governor’s presentation challenged conventional wisdom about national development, arguing that sustainable growth should be driven from sub-national units rather than through top-down federal initiatives. This perspective positions Enugu’s ambitious budget as a potential model for state-led development in Nigeria.
As the budget moves through the legislative process, its successful implementation will depend on the state’s ability to meet its ambitious revenue targets and effectively manage its borrowing strategy. The unprecedented scale of the budget and its heavy emphasis on capital projects signals a transformative period for Enugu State, with potential implications for regional development patterns in Nigeria.
The 2025 budget proposal represents not just a financial document but a comprehensive vision for state transformation, combining aggressive revenue generation with strategic investments in human capital and infrastructure. Its success could establish new benchmarks for sub-national development in Nigeria and provide a template for other states seeking to reduce dependence on federal allocations while pursuing ambitious development goals.
