Mbah Presents N1.62 Trillion 2026 ‘Budget of Renewed Momentum’

•Projects N1.3trn capital expenditure, N321bn recurrent expenditure

•Education gets 32.27% of total budget

•Economic, social sectors lead sectoral allocations with N825.9bn, N644.7bn, respectively

•Lauds Tinubu’s policies as Enugu exceeds projected FAAC inflow

Gideon Arinze in Enugu

Governor of Enugu State, Dr. Peter Mbah, on Tuesday, presented a record N1.62 trillion budget estimate for the 2026 fiscal year to the House of Assembly, saying the administration is moving from laying foundation to scaling transformation across every sector.

The figure represented a 66.5 per cent increase over the N971 billion revised 2025 budget.

Dubbed “Budget of Renewed Momentum”, Mbah said the budget comprised a capital expenditure of N1,296,092,465,000, representing 80 per cent of the total budget, and recurrent component of N321,305,000,000, being 20 per cent of the budget.

Mbah said the budget would be funded through a projected N870 billion Internally Generated Revenue (IGR), while N387 billion would come from federal allocation, and N329 billion from capital receipts.

A sectoral breakdown of the budget showed that the economic sector got N825.9 billion, representing N51 per cent of the total budget, followed by the social sector (N644.7 billion, representing 40.1 per cent of the budget), while administration, justice, and regional sectors got N128 billion, N15.8 billion, and N2 billion, respectively.

Mbah explained, “Allocating N825.9 billion to the economic sector is strategic and deliberate. When we invest in agriculture, industry, and trade, we create jobs, reduce poverty, and generate revenue that strengthens the entire economy.

“The performance of this sector remains central to our vision of achieving a seven-fold GDP growth in Enugu State.”

Highlights of the economic sector include roads/infrastructure, where the governor plans to construct 1,200 urban roads and a significant number of rural roads, while also completing the ongoing 40-kilometre Owo-Ubahu-Amankanu-Neke-Ikem dual carriageway, dualisation of the Abakpa Nike – Ugwogo Nike – Ekwegbe – Opi-Nsukka Road, and the 21.65-kilometre Enugu-Abakaliki Expressway.

Concerning transportation, Mbah announced that the state would acquire 14 additional aircraft to bring Enugu Air’s fleet to 20, stating that three additional planes would arrive before the end of 2025.

He said the administration planned to build five more transport terminals in Emene, Udi, Awgu, Four-Corners (Ozalla), and Obollo-Afor. It equally set aside 15 per cent of the budget for the provision of 15,000 mass housing units, while ramping up infrastructural development at the New Enugu City.

In the agricultural sector, Mbah said the government would, among others, step up the construction of 20-hectare farm estates in the 260 wards of the state, with some already underway.

In the social sector, education got the lion’s share of 32.27 per cent of the entire budget, following patterns of the 2024 and 2025 budgets, where it also got over 30 per cent.

The governor said with the 260 Smart Green Schools already completed or nearing completion, the state would focus on the construction of Smart Secondary Schools and Technical and Vocational Education Training (TVET) Colleges across the state in 2026.

He stated, “There are some, who might look at what we spend on education and cringe. But what we spend currently on education is largely insignificant weighed against the future social cost of having a disproportionate population of out-of-school children.”

He said his administration budgeted N20 billion to clear longstanding gratuities inherited by the government, saying, “Our workers should not wait years to receive benefits they have earned.”

N11 billion was budgeted to, among others, fund the second phase of the administration’s security surveillance system, while the health sector got 10 per cent of the total budget.

2025 Budget Performance

On the 2025 budget performance, Mbah said the administration had so far spent about N806 billion.

He said, “This means that we utilized 97.5 per cent of all the money that came into the state and achieved 83 per cent of the total budget implementation as against the revised budget of N871 billion.”

The governor said regarding revenue performance, “The money coming into Enugu State has grown in ways we have never seen before.”

According to him “Our internally generated revenue is set to exceed N400 billion by the end of the year. It is not yet where we ultimately want to be, but it is already the highest IGR in the history of Enugu State – a 221.6 per cent increase over 2024.”

Mbah commended Tinubu’s economic policies, saying they have revved up federal allocations to Enugu State.

He stated, “Our FAAC inflow did not just meet expectations – it exceeded them by more than half. We projected about N150 billion but we received N230 billion – over 50 per cent above projection.

“This is not accidental. It reflects the impact of President Bola Ahmed Tinubu’s bold economic reforms.

“The removal of fuel subsidies, unification of foreign exchange rate and other fiscal measures have strengthened key macro indicators – inflation has declined and continues to trend downwardly, interest rates have eased, and the exchange rate has stabilised. And our foreign reserve has continued to be strengthened, and recently hit the $46 billion mark.”