Gov Mbah presents N1.62 trillion 2026 budget of ‘Renewed Momentum’

Peter Mbah, Governor of Enugu State, on Tuesday presented a record N1.62 trillion budget estimate for 2026 to the Enugu State House of Assembly, describing it as a transition from laying foundations to scaling transformation across all sectors.

The proposed figure represents a 66.5 per cent increase over the N971 billion revised 2025 budget. Dubbed the Budget of Renewed Momentum, Governor Mbah said the plan allocates N1.296 trillion (80 per cent) to Capital Expenditure, while N321.3 billion (20 per cent) is earmarked for Recurrent Expenditure, totaling N1.617 trillion.

The governor outlined the budget’s funding sources: a projected N870 billion from Internally Generated Revenue (IGR), N387 billion from the Federal Account Allocation Committee (FAAC), and N329 billion expected from Capital Receipts.

A sectoral breakdown shows the Economic Sector receiving N825.9 billion (51 per cent) of the total budget, followed by the Social Sector with N644.7 billion (40.1 per cent). The Administration, Justice, and Regional sectors were allocated N128 billion, N15.8 billion, and N2 billion, respectively.

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“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,” Governor Mbah said.

Economic Sector Highlights include the construction of 1,200 urban roads and a significant number of rural roads, completion of 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.

In transportation, the state plans to expand Enugu Air’s fleet to 20 aircraft, with three additional planes arriving before the end of 2025, and construct five new transport terminals in Emene, Udi, Awgu, Four-Corners (Ozalla), and Oboloafor.

Governor Mbah also earmarked 15 per cent of the budget for 15,000 mass housing units and infrastructure development in the New Enugu City. In agriculture, the administration aims to construct 20-hectare farm estates in all 260 wards of the state, some of which are already underway.

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Social Sector allocations prioritise education, receiving 32.27 per cent of the total budget, consistent with previous budgets. With 260 Smart Green Schools completed or nearing completion, the administration plans to focus on Smart Secondary Schools and Technical and Vocational Education Training (TVET) Colleges across the state in 2026.

“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,” the governor said.

The administration also set aside N20 billion to clear longstanding gratuities inherited from previous administrations, stating: “Our workers should not wait years to receive benefits they have earned.”

Additionally, N11 billion is allocated to the second phase of the state’s security surveillance system, while health receives 10 per cent of the total budget.

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2025 Budget Performance

Reflecting on 2025, Governor Mbah said the administration spent about N806 billion, representing 97.5 per cent of available funds and achieving 83 per cent of the total budget implementation against the revised N871 billion budget.

He also highlighted revenue growth: “Our internally generated revenue is set to exceed ₦400 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% increase over 2024.”

Governor Mbah praised President Bola Tinubu’s economic policies for boosting FAAC allocations: “Our FAAC inflow did not just meet expectations – it exceeded them by more than half. We projected about ₦150 billion but we received ₦230 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, the exchange rate has stabilised, and our foreign reserves recently hit the $46 billion mark.”