Enugu’s exemplary N1.62trn 2026 budget: A renewed momentum towards $30bn economy

When the Enugu State Government unveiled its 2026 Appropriation Bill, the headline figure, ₦1.62 trillion, immediately commanded attention. Yet, beyond the size of the budget lies a deeper story: one of policy consistency, disciplined execution, and a long-term economic vision anchored on transforming Enugu from a largely a civil service and consumption-driven subnational economy into a competitive production, investment, tourism, and living destination. The 2026 budget does not emerge in isolation. It is deliberately built on the relative successes, lessons, and momentum of the 2025 fiscal year, scaling up reforms and investments that have already begun to reshape the state’s economic trajectory.

With a 66.5 percent increase over the 2025 budget, the 2026 fiscal plan represents a conscious acceleration rather than a fiscal gamble. It reflects confidence derived from improved revenue performance, stronger institutional capacity, and early wins across infrastructure, education, healthcare, security, and economic reforms. More importantly, it aligns squarely with the administration’s overarching ambition: to grow Enugu’s economy from an estimated $4.4 billion as of 2023 to a $30 billion economy within the eight-year lifespan of Governor Peter Ndubuisi Mbah’s administration.

At the core of the 2026 budget is a development-first philosophy. Of the ₦1.62 trillion proposed, a remarkable ₦1.3 trillion, representing 80 percent, is allocated to capital expenditure, while recurrent expenditure is held at ₦321 billion, or just 20 percent. In 2025, ratio was even 86 percent capital to 14 percent recurrent. This structure is unusual by Nigerian standards, where recurrent spending often crowds out investment in infrastructure and key economic enablers. In Enugu’s case, however, the reverse is true. The budget is designed to build assets, unlock productivity, and create the enabling environment for private sector-led growth.

This capital-heavy approach in 2026 is not theoretical. It builds directly on the 2025 budget, which prioritised foundational infrastructure, institutional reforms, and sectoral pilots. Roads commenced in 2025 are being extended and completed in 2026. Revenue reforms initiated last year are now yielding stronger internally generated revenue (IGR) projections. Social sector investments in education and healthcare that began as upgrades in 2025 are being scaled into system-wide transformations in 2026. In essence, the 2025 budget laid the groundwork; the 2026 budget is about visible impact at scale.

Revenue projections for 2026 reflect this growing confidence. Total revenue is projected at ₦1.62 trillion, with IGR contributing ₦870 billion, or 53.6 percent of the total. This represents a dramatic 221.6 percent increase over 2024 performance and builds on the improved collections recorded in 2025. The surge in IGR is a product of deliberate reforms: digitisation of land administration, automation of business registration, enhanced tax intelligence, and the elimination of leakages that historically undermined state finances. These reforms are gradually changing the fiscal culture of the state, shifting Enugu away from overdependence on federal allocations.

FAAC receipts are estimated at ₦387 billion, providing a stable but no longer dominant revenue stream. Capital receipts of ₦329 billion, accounting for 20.3 percent of revenue, are expected largely from asset sales and leases, particularly within the New Enugu Smart City. This reflects a shift toward asset optimisation rather than asset accumulation, ensuring that public assets actively contribute to economic growth and fiscal sustainability.

On the expenditure side, personnel costs are pegged at ₦149.995 billion, representing 9.3 percent of the total budget, while overhead costs stand at ₦120.36 billion, or 7.5 percent. Together, recurrent expenditure totals ₦321.305 billion. This disciplined approach mirrors the 2025 framework, where cost containment created fiscal space for investment. The message is consistent: governance efficiency is a prerequisite for development ambition.

Sectoral allocations in the 2026 budget further reveal the administration’s priorities and long-term thinking. The economic sector takes the largest share: ₦825.95 billion, or 51 percent of the budget. This allocation reflects a deliberate push to reposition Enugu as a productive economy rather than a civil service enclave.

Agriculture remains central to this strategy. Massive investments are channelled toward the completion of 260 farm estates across the state. These estates are designed not merely as farming clusters, but as integrated agro-industrial hubs with access roads, power, water, storage, and processing facilities. By scaling agricultural production and value addition, the state aims to boost food security, generate jobs, and expand export potential.

Transport infrastructure is another major pillar of the economic sector. In 2026, ₦1.2 billion is allocated for the construction of modern transport terminals in strategic locations such as Emene, Awgu, and Obollo Afor. These terminals are expected to improve logistics, reduce congestion, and support commerce. Additionally, the procurement of 2,000 city taxis will modernise urban transportation, enhance mobility, and create employment opportunities. Enugu Air, one of the state’s most ambitious projects, is set for significant expansion, with plans to grow its fleet to 20 aircraft, this adding additional 14 aircraft in 2026. This is not an isolated decision. Improved air connectivity is central to positioning Enugu as a hub for business travel, tourism, and investment.

Industrial development continues to receive attention, building on revival efforts initiated in 2025. Strategic assets such as Nigergas, Sunrise Flour Mill, United Enugu Palm Products Limited are being revitalised to stimulate manufacturing, create jobs, and deepen the state’s industrial base. These investments are critical to increasing the state’s gross domestic product and attracting complementary private sector investments.

The social sector commands ₦644.73 billion, representing 40.1 percent of the total budget. Education alone receives 32.27 percent of the N1.62 trillion total expenditure, making it the single largest sectoral allocation for the third consecutive year at over 30 percent of the budget. This sustained emphasis reflects the administration’s conviction that human capital development is the most reliable driver of long-term economic growth. Building on reforms initiated in 2025, the 2026 budget expands investments in Smart Secondary Schools, digital learning infrastructure, teacher training, and Technical and Vocational Education and Training (TVET). The objective is clear: to produce a workforce equipped with relevant skills for a modern, technology-driven economy.

Healthcare is allocated ₦161.8 billion, accounting for 10 percent of the budget. The focus is on consolidating gains from 2025 while scaling up service delivery. The completion of 260 Type-2 Primary Healthcare Centres will significantly expand access to quality primary care, particularly in rural and underserved communities. Secondary healthcare facilities will be upgraded, while construction continues on the 300-bed Enugu International Hospital. This flagship project is expected to reduce medical tourism, attract regional patients, and position Enugu as a healthcare destination in the South-East and beyond.

Housing also features prominently, with ₦243.6 billion allocated, about 15 percent of the budget. The state plans to deliver 15,000 mass housing units in the first phase, addressing housing deficits while stimulating the construction sector. The New Enugu Smart City remains a central component of this strategy, combining residential, commercial, and industrial zones in a planned urban environment. Beyond improving quality of life, the Smart City is projected to generate significant revenue through leases, sales, and increased economic activity.

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Infrastructure and transport projects collectively account for 31.6 percent of the budget. Road infrastructure alone receives ₦120.7 billion, covering critical corridors such as the 40-kilometre Owo–Ubahu–Amankanu–Neke–Ikem Dual Carriageway, the Abakpa Nike–Ugwogo Nike–Ekwegbe–Opi–Nsukka Road, and the 21.65-kilometre Enugu–Abakaliki Expressway. These projects, many of which commenced or were designed in 2025, are essential for improving connectivity, reducing logistics costs, and integrating rural economies with urban markets.

Security, though allocated a modest 2.8 percent, remains strategically important. An ₦11 billion provision will fund the second phase of the state’s security surveillance system, expanding coverage and enhancing response capacity. Safety and stability are foundational to attracting investors, tourists, and residents, and the administration recognises that economic growth cannot thrive in an insecure environment. The 2026 budget also reflects a clear understanding of risks and challenges.

Execution capacity will be tested by the sheer scale of projects. To address this, the state plans to strengthen oversight mechanisms, expand technical manpower, and improve project management systems. External factors such as inflation, exchange rate volatility, and weather-related disruptions may affect costs and timelines, but the administration remains confident that these risks can be managed without undermining core objectives.

Crucially, the budget is framed within a long-term economic vision. The ambition to grow Enugu’s economy from approximately $4 billion to $30 billion within eight years is bold, but not unrealistic. The pathway lies in consistent capital investment, human capital development, institutional reforms, and private sector mobilisation.

By improving infrastructure, strengthening education and healthcare, modernising agriculture, and enhancing security and connectivity, Enugu is positioning itself as a prime destination for business, investment, tourism, and living.

The successes recorded under the 2025 budget: improved revenue performance, ongoing infrastructure projects, strengthened institutions, and renewed investor confidence, provide a strong foundation for the 2026 scale-up. Each kilometre of road completed, each school upgraded, each healthcare centre delivered, and each reform implemented contributes incrementally to a more competitive economy.

In simple terms, the 2026 Enugu State Budget marks a decisive transition. It is the bridge between preparation and performance, between aspiration and achievement. By sustaining fiscal discipline while dramatically expanding capital investment, the government is laying the groundwork for transformative growth. If effectively implemented, the budget will not only deliver tangible improvements in the lives of citizens in 2026, but also set Enugu firmly on the path toward becoming one of Nigeria’s most dynamic subnational economies—an investment destination of choice, a hub for tourism and innovation, and a place where people can live, work, and thrive.

Ultimately, ₦1.62 trillion is not just a figure. It is a statement of confidence in Enugu’s future, and a roadmap to getting there. Indeed, Tomorrow is Here for Ndi Enugu.

Dr. Ogbu is Senior Special Assistant (Strategic Communications) to Enugu State Governor_

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