Governor Peter Mbah has presented a ₦1.62 trillion appropriation bill to the Enugu State House of Assembly for the 2026 fiscal year, marking the state’s most ambitious budget yet and signalling his administration’s determination to scale up development gains recorded over the past two years. The budget proposal, themed “Budget of Renewed Momentum,” reflects a 66.5% increase from the ₦971 billion budget for 2025, underscoring a strategic push to deepen reforms and infrastructure expansion across the state.
While addressing lawmakers in Enugu on Tuesday, Mbah said the stepped-up fiscal proposal was essential for sustaining the pace of transformation already visible across key sectors. According to him, the substantial increase demonstrates the government’s resolve to invest heavily in human capital development, modern infrastructure, productive sectors of the economy, and governance systems capable of supporting long-term growth.
Capital Expenditure Dominates 2026 Spending Plan
A major highlight of the 2026 proposal is the allocation structure, which overwhelmingly favours capital investment. Governor Mbah disclosed that ₦321 billion—representing 20% of the entire budget—has been set aside for recurrent expenditure, covering personnel, overheads, and general administration.
In contrast, a significantly larger ₦1.29 trillion is dedicated to capital expenditure, reaffirming the administration’s commitment to transformative, long-term projects. Mbah explained that the budget is anchored on four core pillars that shape his administration’s development philosophy:
-
Empowerment and Education
-
Inclusive and People-Centred Development
-
Good Governance
-
Economic Transformation
“These pillars form the bedrock of our development agenda and will guide how every naira in this budget is deployed,” the governor told the Assembly, noting that the strategy is designed to accelerate economic expansion, reduce poverty, and enhance overall quality of life.
Funding Structure and Revenue Projections
The government anticipates a robust revenue outlook in 2026, anchored on improved efficiency in internal revenue collection and ongoing federal allocations. To fund the ₦1.62 trillion package, the administration projects:
-
₦870 billion from Internally Generated Revenue (IGR)
-
₦387 billion from Federal Allocation
-
₦329 billion from capital receipts, including loans, grants, and investment inflows
Mbah expressed confidence that ongoing reforms in revenue automation, digital governance, and private-sector partnerships will strengthen the state’s capacity to meet these targets.
Sectoral Allocations Prioritise Infrastructure and Social Development
According to the governor, the economic sector received the largest share of the budget, with an allocation of ₦825 billion. This funding will support critical infrastructure projects, agricultural development programmes, industrial parks, transportation networks, and initiatives to promote investment.
The social sector—covering education, healthcare, social welfare, and other human capital programmes—received ₦644 billion, reflecting the administration’s emphasis on building a skilled and healthy population capable of driving the state’s transformation agenda.
Other allocations include:
-
Administration: ₦128 billion
-
Law and Justice: ₦15 billion
-
Regional Sector: ₦2 billion
2025 Budget Performance Reaches 83%
Governor Mbah also gave an update on the implementation of the 2025 budget, revealing a performance level of 83%. He noted that as the year wraps up, this figure is expected to rise further as ongoing projects approach completion.
Assembly Pledges Full Support
Responding to the presentation, the Speaker of the Enugu State House of Assembly, Chief Uche Ugwu, praised the governor for what he described as an impressive track record of achievements in just two years. He assured the executive of the legislature’s cooperation and promised accelerated consideration of the 2026 appropriation bill.
“We remain committed to giving this budget the priority attention it deserves so that the developmental objectives of this administration can be realised,” Ugwu stated.
Strategic Economic Moves Ahead
This budget presentation comes months after the state government signed a landmark Memorandum of Understanding (MoU) with Lion Business Park Limited to establish a modern industrial and commercial hub within the Enugu Industrial Park Free Trade Zone. The initiative aims to raise the state’s GDP dramatically—from $4.4 billion to $30 billion—by stimulating innovation, industrial growth, employment, and regional competitiveness.
Governor Mbah reiterated that the 2026 budget is crafted to sustain this growth trajectory, foster shared prosperity, and entrench Enugu State as an emerging economic powerhouse in the South-East and Nigeria at large.
