A NEW BEGINNING: 16 Key Points Gov. Otti Made About 2024 & Budget Implementation

A NEW BEGINNING: 16 Key Points Gov. Otti Made About 2024 & Budget Implementation

Below are key points extracted from the budget speech presented by Governor Alex Otti to the Abia State House of Assembly. READ BELOW:

1. The 2024 budget proposal which we christened the “Budget of New Beginning” targets the expansion of our public infrastructure in line with our new development targets, scaling up access and quality service delivery in the social sector, with special focus on education and health where we are proposing to commit more than 20% and 15% of the aggregate budget spending respectively.

2. The State is proposing a total expenditure of Five Hundred and Sixty-Seven Billion, Two Hundred and Forty Million, Ninety-Five Thousand, Nine Hundred and Seventy-Two Naira (N567, 240, 095, 972. 00) in the 2024 fiscal year.

3. The above figure, in nominal terms, represents more than N400 billion rise from the 2023 estimate of N160.5 billion although when adjusted for inflation and fall in the value of the naira, the reality becomes starkly different.

4. The key distinction in the 2024 budget estimate, however, is in the direction of spending. While the 2023 projection allocated 53% of the entire budget for capital expenditure, our target in the 2024 fiscal year is to spend 84% of the total expenditure on capital projects and commit 16% to recurrent expenditure, as against 47% in the 2023 estimates.

5. Of the proposed figure, government’s estimated total revenue is N166,077,717,058 including earnings from our IGR channels, Federation Accounts Allocation Committee (FAAC), grants from multilateral organisations and income from other revenue sources that will be available to the state government over the course of the accounting year.

6. We plan to finance the deficit of N401, 162, 378, 914 partly by new borrowings estimated at N385, 271, 027, 214. 50% of this borrowing will be sourced externally, whilst the balance will be procured domestically.

7. It must at this point be stated that all borrowing in the 2024 fiscal year would be committed strictly to capital development projects with direct impact on the economy of the state, especially roads, schools and medical facilities. The projection is that the impact of these projects on the general economy in the medium to long term would generate the sufficient returns that would enable the state meet her obligation to the creditors smoothly and ultimately pay off the loans in due course.

8. In the 2024 fiscal year, the state proposes to commit 44.76% of the budget on the economic sector with the larger chunk of the resources going into works, (16.97%), land and housing (9.9%), agriculture (5.12%), and finance, (5.23%).

9. We shall be committing major resources in the 2024 financial year to the reconstruction and rehabilitation of some of the most important roads along the major economic corridors of the state. The budget has provided for completion of some of the projects we started in 2023 including Port Harcourt Road Aba, Ossah Road, Umuahia-Uzuakoli-Abariba-Ohafia Road, Ozuabam-Ndi Okereke- Arochukwu Road, the dualisation of Umuikaa-Umuene-Omoba Road, Dualisation of Owerrinta-Umuikaa Road, Nunya-Eluama-Isuikwuato Road, Onuimo-Abia Tower Road amongst others as well as the commencement of new road projects in parts of the state.

10. For housing, the state shall be partnering with reputable private developers to develop new mass housing projects in our major urban locations. We are not just looking to erect blocks of flats; our target is to develop sophisticated urban locations that answer to the housing needs of our upwardly mobile youth population, young families and diaspora population.

11. In agriculture, we are proposing to designate Bende, Ukwa and Umunneochi LGAs as Special Agro-Industrial Processing Zones (SAPZ). Our SAPZs will be structured to serve as major hubs for the production, aggregation, processing and distribution of major agro-commodities produced in these areas for improved value in the local and international markets.

12. including gas-solar powered energy plants, quality road infrastructure, optic fibre, water treatment facilities and ancillary support structures to drive the activities along these agro corridors.

13. In the same vein, 40.07% of the total budget is proposed to be committed to the social sector with the bulk of the resources going into education (20%), healthcare (15.04%), youth and sport development, (3.17%).

14. Items proposed in the social sector include the renovation of 300 public primary and secondary schools across the 17 LGAs of the state, infrastructure upgrade at the State College of Education, the retooling of 3 technical schools across the 3 senatorial districts, the procurement and installation of world class modern health facilities at 3 general hospitals across the 3 senatorial districts of the state, the construction of a standard medical village to stem the tide of medical tourism, the construction of the Nsulu Sports and Entertainment Complex, construction of community sports hubs in all the 17 LGAs of the state, construction of digital skills and innovation centres across the 3 senatorial districts and many, many more.

15. As I promised at a media briefing earlier in the month, we shall be implementing a pay rise for our civil servants to reflect the present economic realities in the country. This shall be implemented in the New Year and provision for that has been made in the 2024 budget. The government will continue to prioritise the welfare of its employees even as we expect to see greater commitment from our civil servants who are major stakeholders in the implementation of our governance agenda.

16. We shall continue to support the conventional security establishments to improve the security of life and property in all parts of the state. Let me repeat my earlier warning that criminality in whatever guise shall have no place in the New Abia. We are open for business and any threat to this goal shall be met with the full weight of the law.