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Gov Mbah Presents N971bn 2025 Budget to Enugu House of Assembly
Governor of Enugu State, Dr. Peter Mbah, has proposed a record N971bn budget bill for the 2025 fiscal year to the Enugu State House of Assembly.
Presenting the estimates entitled “Budget of Exponential Growth and Inclusive Prosperity” at the floor of the House on Tuesday, Mbah said the proposed estimates comprised N837.9bn Capital Expenditure, representing 86 per cent of the budget estimates, and a Recurrent Expenditure component of N133.1bn, representing only 14 per cent of the budget.
This topples the record-holding 2024 budget of N521.5bn, consisting of N414.3bn Capital Expenditure, representing 79 per cent of the total budget and N107.2bn Recurrent Expenditure, representing about 21 per cent.
However, like the 2024 budget, the 2025 budget proposal emphasizes huge investment in education as well as basic but critical infrastructure and amenities like roads and bridges, water supply, transport services, energy, modernization and digitization of public services and associated processes, with the Education sector getting a lion-share of N320.6bn, representing over 33 per cent of the total budget for two consecutive years.
Mbah said that this was in line with his administration target of poverty eradication and an inclusive development model, which ensures that no one or segment of the society is left behind.
The governor equally announced a growth in the state’s Internally Generated Revenue, IGR, from N37.4bn at the end of 2023 to N144.7bn in September 2024, representing a radical 286.2 per cent increase in line with the administration’s deliberate effort to wean the state off reliance on FAAC allocations.
Addressing the House, Mbah said, “In crafting this budget, we have sort to continue to lay the right foundation in Enugu to enhance the economy and attract even more private investment.
“In spite of the dreary economic environment across the country, for us here in Enugu, we have elected to remain bullish in our aspirations, and to double down on our commitment to elevate our state to top three status in terms of GDP nationally, and eradicate poverty from our midst.
“Indeed, we see this as a vindication of our previously espoused view that sustainable national growth can really only be driven from the sub-national units to the federal levels, and not the other way round as we have attempted to do to date.
“It is on account of this that we are proposing to the House of Assembly today, a budget with a total envelope of N971,084,000,000.00 as against the budget for 2024 fiscal year which totaled N521,561,386,000.00.
“This represents an 86.4 per cent increase from the 2024 revised budget.
“The budget is broken down as follows: N133,140,000,000.00 as Recurrent Expenditure and N837,944,000,000.00 as Capital Expenditure,” he said.
On sources of revenue, he said, “In the area of our revenues, we estimated that total Recurrent revenues during 2025 will amount to N692,179,000,000 as against the approved revised provision for 2024 of N383,789,000,000.00.
“The Recurrent revenues for 2025 are broken down as follows: opening balance – N32,000,000,000; Internally Generated Revenue, IGR – N509,947,000,000; statutory revenue – N48,749,000,000; exchange rate differential – N26,559,000,000; and Value Added Tax, VAT – N74,924,000,000.
“With the total Recurrent Expenditure at N133,140,000,000.00, this translates to a Net Recurrent Revenue of N559,039,000,000.00, which is thus transferred to the Capital Development Fund.
“The total Capital Expenditure for the year 2025 is projected at N837,944,000,000.00 as against N414,334,120,000.00 for the 2024 Revised Budget. The Current Capital Expenditure estimate will be funded from the sum of N559,039,000,000.00 to be transferred from the Consolidated Revenue Fund, and the Capital receipts of N278,905,000,000.00 to be realized as follows: External and Internal Aids and Grants – N15,000,000,000; other receipts – N80,202,000,000; Domestic Loans/Borrowings receipts – N55,000,000,000; and International Loans/Borrowings – N128,503,000,000.”
Meanwhile, in terms of broad sectors, the Economic Sector got a lion share of N462bn, representing 55.1 per cent of the Capital Expenditure, followed by the Social Sector with N345.7bn, representing 41.2 per cent.
In terms of specific sectors, Education got 33.2 per cent, the largest chunk, in sync with Mbah’s effort to eradicate poverty and graduate the state to a knowledge-based economy.
“As we must all know by now, Education is both our ‘sword’ and ‘shield’ in this battle to achieve economic growth in our state and banish poverty and want among our population. Consequently, we are maintaining the ambitious direction we charted in 2024 by voting a total of N320,609,059,000,00 for that sector. This represents 78% of the social sector of the budget and 33.2% of our Capital Expenditure this year,” he stated.
The governor explained that the 2025 budget would also focus greatly on health, road infrastructure, transport, agriculture, and water sectors, among others.
“There can be no economic growth without quality healthcare. This is why we are spending N45,830,896,000.00 on the sector this year.
“In the area of Works and Infrastructure, we will continue our relentless advance towards our target to build or refurbish all key roads across the state by 2031. In line with this, we will spend a total of N213,120,267,000.00 in 2025.
“Food inflation is a major component of core inflation in Nigeria. Consequently, food production is critical to moderation of the currently high levels of inflation in the Country. As a result, we will be spending up to N82,300,761,000.00 in the agricultural and agro-industrialisation sector this year.
In the area of Transport, we will be spending a total of N41,132,463,000.00 to expand Enugu Air with the acquisition of 4 additional aircraft. In addition, we will be consummating the concessioning of the Akanu Ibiam international airport as well as the construction of an international cargo terminal. We will also be floating a new taxi scheme in collaboration with the private sector to modernize urban and inter-urban transportation for Ndi Enugu.
*2024 Budget Performance*
Giving a breakdown of the state’s IGR and overall performance of the 2024 budget, the governor noted a remarkable increase in the state’s IGR since the inception of this administration, explaining that while the state’s IGR stood at N26.8bn in 2022, the administration it by 39 per cent to N37.4bn at the end of 2023.
However, as at September 2024, the state’s IGR had drastically increased to ₦144.7bn, representing a 286.2 per cent increase, expressing confidence that ti would surpass 200billion by the end of the year.
“In terms of budgetary performance, the total revenue realised in the state as at October 2024 came to N459,851,309,396.47, which comes to a budget performance of 88%. Of this amount, N178,354,494,502.47 related to Statutory Receipts, while N136,700,000,000.00 related to Capital Receipts and N144,796,814,894.00 to Internally Generated Revenue.
“As at October, these inflows had been applied to Expenditure with N382,427,929,564.00 as Capital Expenditure and N76,546,090,116.18 as Recurrent Expenditure. These translated to a budget performance of 88%. Additional revenues and Expenditure are still expected before the end of the year, with IGR envisaged to surpass the N200 billion mark.
“While we may make bold to say that our progress in this past year is commendable given the odds that were arraigned against the state economy, we are not yet ready to rest on our oars,” Mbah said.
Meanwhile, the Speaker of the State Assembly, Hon. Uchenna Ugwu, has promised early passage of the budget by the House to sustain the governor’s development strides.
“He exhibited his leadership mantra, tomorrow is here.
“Because you have demonstrated enormous capacity; because you have exhibited enormous potential of the very fabric of our state’s economy, I want to assure you that the House of Assembly shall expeditiously consider this and give you the legal framework to continue flying high,” Hon. Ugwu stated.
The Alaigbo Development Foundation has issued a stern warning against any attempt to deny Rivers State its constitutional right to produce the next President-General of Ohanaeze Ndigbo in the January 2025 elections.
In a statement on Wednesday, signed by its President, Nze Coleman Chukwudelunzu, the ADF described those seeking to undermine the Ohanaeze Constitution as the “number one enemies of the Igbo nation.”
Chukwudelunzu stressed the importance of adhering to constitutional principles and maintaining fairness in Ohanaeze Ndigbo’s leadership.
“Whoever wants to deny our brothers in Rivers State their right to produce the President-General of Ohanaeze Ndigbo is an enemy of Ndigbo and the Igbo nation. We must resist them,” he said.
The ADF leader identified two major challenges undermining Ohanaeze Ndigbo: external forces attempting to control Igbo affairs and internal actors seeking federal appointments at the expense of Igbo unity.
Chukwudelunzu alleged that powerful individuals from other ethnic groups had, in the past, influenced the selection of Ohanaeze President-Generals and criticised some Igbo governors for prioritising personal gains over regional interests.
“Tragically, some so-called Ohanaeze chieftains act as errand boys to governors and ministers instead of speaking truth to power as great leaders like Akanu Ibiam and Z.C. Obi once did,” he lamented.
Despite these challenges, Chukwudelunzu expressed gratitude for the resilience of patriotic Igbo leaders within the ADF, emphasising the need for Ohanaeze Ndigbo to remain a vital socio-cultural institution for Igbo unity and progress.
Reflecting on historical moments of Igbo unity, Chukwudelunzu recalled the efforts of Igbo delegates during the 1994-1995 Abuja National Constitutional Conference.
Leaders such as Okogbule Wanodi, Peter Odili, and Emeka Ojukwu stood together to defend Igbo interests against divisive agendas like the Justice Mamman Nasir Committee’s state creation plans.
“At that conference, Igbo delegates showcased an unbreakable bond of unity that Justice Mamman Nasir himself could not ignore,” Chukwudelunzu reminisced, calling for similar unity as the January elections approach.
Adopting a motion to that effect, sponsored by Senator AbdulFatai Buhari (APC Oyo North) during plenary, the Red Chamber particularly charged its Committee on Aviation to unravel the circumstances behind the incessant flight delays and cancellations to find lasting solutions to the problem.
The PUNCH exclusively reported on Wednesday that about 2,000 air passengers lost 19,274 pieces of luggage between January and June this year, according to data from the Federal.
The report stated that data obtained from the half-year report of the Nigerian Civil Aviation Authority, an agency of the Federal Government that regulates civil aviation, further indicated that 19,250 passengers were delayed for long hours during the review period.
Senator Buhari, while presenting the motion, said the problem which he noted had been on the increase in recent times, is all over the media.
“This development is worrisome as air travel is one of the most reliable, dependable, and quicker means of transportation, often undertaken for business/official purposes and to keep other scheduled appointments, which are usually time-bo,” he said.
Buhari pointed out that “the quest for economic diversification and foreign direct investment, which are parts of the current administration’s policy thrust, will remain an illusion if the country’s aviation industry falls short of the acceptable best practices across the globe.”
“Part 19 of the Nigerian Civil Aviation Authority Regulations of 2023, makes provisions for consumer protection in the civil aviation industry in Nigeria.”
He added, “However, enforcement has been an issue as most Nigerians are not even aware that they are entitled to compensation for time lost due to unnecessary delay, hence the need for the NCAA to activate this aspect of its regulation so that airline operators will sit up and be alive to their responsibilities.”
The Senate further instructed its Committee on Finance to stay action on the public hearing pending the time the agitation in the public space was addressed.
It further constituted a special committee to meet with the executive arm and work with the Federal Government to resolve the issues surrounding the Tax Reform Bills.
This was made known by the Deputy Senate President, Jibrin Barau, who presided during plenary on Wednesday.
There has been controversy over the Tax Reform Bills since its introduction to the National Assembly.
The bills are Tax Reform Bills comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024 and Nigeria Tax Bill, 2024.
The northern Governors rejected the bills outright, describing them as anti-democracy.
Following this, the National Economic Council, Nigeria’s highest economic advisory body, requested that the tax reforms bill be withdrawn from the NASS for more consultations.
Oyo State Governor, Seyi Makinde, announced the council’s position after its 144th meeting chaired by Vice President Kashim Shettima at the State House, Abuja.
Makinde said council members agreed that the bill be withdrawn as some sections of the country are uncomfortable with some of its sections. He said this would allow for consensus building and understanding.
Following the various controversies that greeted the bills, the Senate on Wednesday invited the president’s Economic team led by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, alongside the Chairman of the Federal Inland Revenue Tax, Zacchaeus Adedeji, Director General of the Budget Office, Tanimu Yakubu, into plenary to explain the Tax Reform bills in detail to lawmakers.
After the interaction with the President’s economic team, the Senate passed the bill for a second reading and transmitted it to the Senate Committee on Finance.
After the passage of the bill, the Borno State Governor, Prof Babagana Zulum, accused Oyedele’s team of rushing the enactment of the tax reforms, alleging that the bills are accompanied by misconceptions that require deeper consultations.
“On this tax issue, there are a lot of misconceptions. We felt that the VAT provision in the tax law, based on the calculations we did, would only benefit Lagos and Rivers States. We did our research and concluded that we would lose,” Zulum said.
“Why are we in a rush? We advised the Federal Government to take a pause and expunge some of the clauses that are inimical to Northern Nigeria. What we are saying is, give more time, let us do a deeper consultation to understand the nitty-gritty of this tax regime before passing it into law,” Zulum added during an interview on Channels Television.
Amidst the controversy, Senator Shehu Buba (APC, Bauchi South), in an interview with the British Broadcasting Service Hausa Service said northern Senators agreed to recall the Tax Reforms Bills.
He said, “These bills are complex and require thorough review by tax policy experts.”
He claimed that northern lawmakers strongly oppose the proposed “derivation” formula in the value-added tax distribution system, arguing that northern states would be unfairly impacted.
Also on Tuesday, the President instructed the judiciary to liaise with the legislative arm of government.
Speaking on the controversies, the Deputy Senate President noted that the delegation would meet on Thursday at the National Assembly to resolve all the issues that had caused the uproar.
Barau said, “On the tax reform bills currently before us, we acknowledge that the Senate remains the highest legislative assembly in this country.
“The Senate comprises men and women of wisdom and experience, entrusted to legislate for the peace, stability, and development of the nation.
“The Senate of the Federal Republic of Nigeria, like similar bodies globally, serves as a stabilising force in times of difficulty or disagreement. Through dialogue and consensus, the Senate has consistently provided solutions to national challenges since 1999.”
He added, “In this regard, we have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills.
“In collaboration with the Executive Arm of Government, we agreed to establish a forum to identify and address contentious areas to ensure national unity and progress.
“Before the introduction of these bills, we faced numerous challenges, including insecurity and economic issues.
“The President has been working to address these problems, and we are committed to supporting these efforts while tackling global economic challenges. We also agreed that no other issues should aggravate the country’s current difficulties.”
On Tuesday, following the controversy emanating from the bills, President Tinubu directed the Ministry of Justice to work closely with the National Assembly to address “grey areas” concerning the bill with the legislature.
The Minister of Information and National Orientation, Mohammed Idris, stated this in a statement titled ‘President Tinubu committed to accountability on tax bills, directs Ministry of Justice to work with NASS on concerns.’
Mohammed said, “In line with the established legislative procedure, the Federal Government welcomes meaningful inputs that can address whatever grey areas there may be in the bill.
“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.”
Barau confirmed that the Senate committee would meet with the Attorney-General of the Federation on Thursday (today).
“It has been mutually decided between the Executive and the Senate to engage the Judiciary to sort out these matters.
“The Attorney-General of the Federation will be involved in discussions to identify and resolve areas of disagreement for the nation’s benefit.
“Tomorrow (today), the committee established by the Senate, along with its leadership, will meet with the Attorney-General to address these issues.”
Barau added, “Consequently, the Senate Committee on Finance has been directed to pause further actions on public hearings and other matters related to the tax reform bills until the issues are resolved.”
However, there are indications that the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), may not be present to attend the meeting on the tax reform bill slated for today.
A senior official at the Ministry of Justice confirmed to our correspondent that the AGF was out of the country and billed to return today.
The source said, “The AGF is not in the country at the moment but he will return tomorrow (today).”
The Organised Labour in Enugu State has refuted the media reports that the new minimum wage was yet to be paid in the state, saying that the implementation of the N80,000 minimum wage, which is above the N70,000 national minimum wage, commenced in November 2024.
The workers also said that they had no plan to go on strike since. They said that observed discrepancies in consequential adjustment in the implementation of the N80,000 minimum wage had already been conveyed to Governor Peter Mbah and nursed no doubts that it would be addressed subsequently, as he had already earned workers’ trust by his commitment to their welfare since his assumption of office.
This was made known in a joint statement in the state capital on Tuesday by the Chairman, Nigeria Labour Congress, NLC, Enugu State Council, Comrade Fabian Nwigbo; Chairman of the Trade Union Congress, TUC, Comrade Ben Asogwa; and the Chairman of the state’s Joint Public Service Negotiating Council, JNC, Comrade Ezekiel Omeh.
The statement read, “The Orgaised Labour in Enugu State wishes to make clarifications in several media reports, which wrongly project Enugu among the states that are yet to pay the national minimum wage.
“We want to acknowledge the fact that the Enugu State Government paid the N80,000 minimum wage approved by the governor in the November 2024 salary.
“However, the minimum wage paid did not reflect the consequential adjustments inherent in minimum wage implementation.
“As labour leaders, we have already communicated to His Excellency the observed discrepancies and in his usual magnanimity to the welfare of workers, we strongly believe that he will address this subsequently.
“Our confidence in the governor remains intact, considering his usual dispositions to the wellbeing of workers.
“It is worthy of note that he continued to pay wage award of N25,000 he approved for workers from December 2023 till October 2024 when the new minimum wage of N80,000 was approved and consequently reflected in the November salary.
“We also recall his good faith in ensuring that local government employees were included from the onset in the new minimum wage of N80,000, having earlier upgraded them to full N30,000 minimum wage upon assumption of office after several years of waiting.
“Likewise, he approved the payment of the N1.9bn four-year accumulated leave allowances owed to teachers of public primary schools in the state and eight-month salary arrears valued at over N467m, which were also owed the academic, non-academic, and casual staff of the Enugu State College of Education Technical, ESCET, Enugu, before his assumption of office.
“Consequently, in the same culture, we trust him to address all the concerns regarding consequential adjustments in the implementation of N80,000 minimum wage.
“So, we have not gone on strike. We do not also contemplate or foresee any strike in the near future because there is no need for that yet.”
The NLC had given directives to workers whose state governments did not implement the new minimum wage to embark on strike.
But Nwifuru, in a live broadcast on Monday, kicked against the industrial action, vowing he would withhold the salaries of the striking workers and also replace any of them who failed to report to office in the next 72 hours.
He said, “If you don’t go to work, not only that I will not pay you salary, I will replace you within 72 hours. As far as I am not guilty, I do not owe you. I am paying you what is supposed to be paid and according to the agreement and constitution, I do not owe you. If you don’t go to work within 72 hours, I will replace you.”
He added, “I have called the Chairman of the Civil Service Commission. I have directed all the commissioners to go to their offices. All the agencies and all the departments of government must be in their offices and record the people that come to work.
But Ajaero, in his reaction to Nwifuru’s outburst, noted that the strike action was preceded by failed conversations and notices to the governor on the need to implement the 2024 national minimum wage signed into law several months ago.
The labour leader, in a statement, said, “The law has provisions for enforcement by workers. Besides this, strike action is a lawful/legitimate tool in the hands of aggrieved workers. In light of this, we consider the threat by the governor as irresponsible and unhelpful.
“What a reasonable governor acting reasonably ought to have done was to invite the labour leaders in the state for dialogue for a speedy resolution of the facts in issue. But he thinks he is God. On our part, we want the world to know that Governor Nwifuru is the first to draw blood in a matter of which he is completely guilty.’’
“We also want the world to know that the right of response is available to us in pursuance of a just cause. Accordingly, the National Secretariat of the Congress has directed all the affiliates, including those in the private sector, to immediately join in the strike action.
“It similarly urged the workers already on strike to not yield to the threats of the governor. They are to sustain the momentum until the governor sees the need to not only behave properly but pay the minimum wage in compliance with the law. In the coming hours, further directives will be given as we deem fit,” Ajaero said.
Meanwhile, the Kaduna State chapter of the NLC has suspended its strike over the non-payment of the minimum wage to workers in the state.
The strike was suspended for seven days to give the state government time to revisit its payment template, which was rejected by the labour union due to certain inconsistencies.
The NLC chairman in Kaduna State, Ayuba Suleiman, disclosed this to journalists on Tuesday.
According to him, the decision to suspend the strike was taken after a Monday night meeting with government representatives.
“We rejected the payment because it exempted some workers, paid some less, and paid some more. We want a uniform payment template that reflects the new minimum wage,” he said.
Suleiman expressed gratitude to the workers for their support during the strike.
“We thank you for your compliance, and we assure you that your interests are our priority. You can now return to work tomorrow morning, and we will continue to fight for your rights,” he said, while commending the National Monitoring Committee for giving the union the go-ahead to suspend the strike.
“We contacted the NLC National Monitoring Committee, and they gave us the go-ahead to suspend the strike. We are confident that the state government will revisit its payment template and come up with a uniform payment structure that reflects the new minimum wage, ‘’ he explained.
However, Governor Uba Sani’s Chief Press Secretary, Ibraheem Musa, clarified that the issue was related to salary adjustments, not the minimum wage itself.
“The least paid worker in Kaduna State received N72,000 in November,” Musa said, adding, “The issue is not about the minimum wage but about the consequential adjustments. We urge patience, as the state’s limited revenue, which comprises an average monthly allocation of N8bn from the Federal Account Allocation Committee and N4bn in internally generated revenue, makes it difficult to implement the adjustments immediately.”
In a related development, civil servants in Akwa Ibom State have resolved to embark on strike from Wednesday (today) following the non-implementation of the national minimum wage in the state.
This was contained in a communique issued after an emergency meeting of the State Executive Council held at the NLC Secretariat, Uyo on Monday.
The meeting was attended by members of the State Administrative Council and State Executive Council.
The statement, signed by the chairman of SEC, Sunny James, and made available to our correspondent in Uyo, on Tuesday, read, “The Sec -in-session made the following resolutions: That His Excellency direct for the signing of the New National Minimum Wage Agreement, which shall state the effective date of implementation while the staff verification exercise shall continue;
“That if by midnight of Tuesday, December 3, 2024, the agreement mentioned in (1) above is not signed with the effective date and month of commencement for payment properly indicated. All workers in the state shall commence an indefinite strike action over the non-implementation of the new wage.
“That the SEC-in-Session hereby acknowledges the directives of the national leadership of the NLC and that of the presidents of the affiliate unions to commence action on December 1, 2024, but following the peculiar situation of the burial of the First Lady of our state, there was the need to shift our date by three days and hereby direct all the workers to proceed on strike on Wednesday, 4th December, 2024 if the agreement is not signed by that time.
“That workers are further directed to come out en-masse to the Akwa Ibom State Government House gate at Wellington Bassey Way, Uyo on Monday December 9, 2024 to massively protest for their new national minimum wage payment.”
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