Enugu State’s Governor, Dr. Peter Mbah, presented an unprecedented N1.62 trillion budget estimate for the 2026 fiscal year to the State House of Assembly on Tuesday. Declaring that his administration is transitioning from laying the foundation to actively scaling up transformation across all sectors, the Governor’s proposal marks a significant 66.5 per cent increase over the revised N971 billion budget for 2025.
The budget, appropriately christened the “Budget of Renewed Momentum,” features a heavy inclination towards capital development, allocating N1,296,092,465,000 a robust 80 per cent of the total spending plan to capital expenditure. The remaining N321,305,000,000, or 20 per cent, is earmarked for recurrent expenditure.
Governor Mbah detailed the funding sources for this ambitious proposal, projecting an Internally Generated Revenue (IGR) of N870 billion. Further funding is expected from N387 billion in federal allocation and N329 billion from capital receipts.
Analyzing the sectoral distribution reveals a clear strategic focus: the economic sector secured the largest share with N825.9 billion, representing 51 per cent of the total budget. This is followed by the social sector, which received N644.7 billion (40.1 per cent). The administration, justice, and regional sectors were allocated N128 billion, N15.8 billion, and N2 billion, respectively.
Mbah underscored the rationale behind prioritizing the economic sector. He 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.” He affirmed that the sector’s performance remains absolutely central to the administration’s vision of achieving a seven-fold growth in Enugu State’s Gross Domestic Product (GDP).
Major highlights within the economic blueprint include substantial investment in roads and infrastructure. The Governor intends to construct 1,200 urban roads and a significant number of rural roads. Key ongoing projects, such as the 40-kilometre Owo, Ubahu, Amankanu, Neke-Ikem dual carriageway, the dualization of the Abakpa Nike, Ugwogo Nike, Ekwegbe, Opi, Nsukka Road, and the 21.65-kilometre Enugu-Abakaliki Expressway, are set for completion.
In the area of transportation, Governor Mbah announced plans to expand the Enugu Air fleet by acquiring 14 additional aircraft, bringing the total fleet size to 20, with three new planes expected before the close of 2025. Furthermore, the administration will establish five new transport terminals in strategic locations: Emene, Udi, Awgu, Four-Corners (Ozalla), and Obollo-Afor. A substantial 15 per cent of the budget has been set aside for the provision of 15,000 mass housing units, alongside ramping up infrastructural development at the New Enugu City.
Agriculture is also receiving a dedicated boost, with plans to accelerate the construction of 20-hectare farm estates in all 260 wards of the state, some of which are already in progress.
Within the social sector, education, consistent with the patterns of the 2024 and 2025 budgets, received the lion’s share, taking 32.27 per cent of the entire fiscal plan. With the 260 Smart Green Schools either completed or nearing completion, the focus for 2026 will shift to constructing Smart Secondary Schools and Technical and Vocational Education Training (TVET) Colleges across the state.
Addressing potential concerns about the high expenditure on education, the Governor 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.”
In a move aimed at worker welfare, the administration has budgeted N20 billion to clear long-standing, inherited gratuities. Mbah asserted that workers should not have to wait years to receive the benefits they have rightfully earned. Additionally, N11 billion has been set aside to fund the second phase of the state’s security surveillance system, while the health sector received 10 per cent of the overall budget.
Governor Mbah also took time to review the performance of the 2025 budget, stating that the administration has so far spent approximately N806 billion. He highlighted a high utilization rate, noting, “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.”
Regarding revenue generation, the Governor expressed satisfaction, noting that “The money coming into Enugu State has grown in ways we have never seen before.” He projected that the state’s internally generated revenue is on track to exceed N400 billion by the end of the year. While acknowledging that this is not yet the ultimate target, he pointed out that it represents the highest IGR in Enugu State’s history—a staggering 221.6 per cent increase over the 2024 figure.
The Governor also commended the economic policies of the national government, attributing the increased federal allocations to Enugu State to their impact. He revealed that the state’s Federation Account Allocation Committee (FAAC) inflow significantly surpassed projections. “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,” he stated.
Mbah credited this positive outcome to President Bola Ahmed Tinubu’s “bold economic reforms,” mentioning the removal of fuel subsidies, the unification of the foreign exchange rate, and other fiscal measures. He noted that these actions have resulted in a decline in inflation, easing interest rates, and stabilizing the exchange rate, alongside the strengthening of foreign reserves, which recently hit the $46 billion mark.
