Amanze Chinonye
Enugu State Governor Peter Mbah has presented a record ₦1.617 trillion budget for the 2026 fiscal year, describing it as a blueprint for “full-scale impact” across critical sectors after two years of foundation-building reforms.
Tagged the Budget of Renewed Momentum, the proposal represents a 66.5 per cent rise from the 2025 budget of ₦971 billion.
According to the spending plan, capital expenditure dominates with ₦1.296 trillion 80 per cent of the budget while recurrent expenditure stands at ₦321 billion, or 20 per cent. The administration projects total revenue of ₦1.586 trillion for 2026, driven primarily by aggressive internal revenue generation targets.
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Internally Generated Revenue (IGR) is expected to contribute ₦870 billion, representing 54 per cent of projected earnings, while FAAC receipts are pegged at ₦387 billion and capital receipts at ₦329 billion.
Strong 2025 Performance Sets Tone
Governor Mbah said the bold 2026 plan is grounded in Enugu’s performance in 2025, during which the state achieved 83 per cent budget implementation. Total spending for 2025 closed at ₦806 billion 82.9 per cent of the approved budget while revenue utilisation hit 97.5 per cent.
The year also saw a historic surge in IGR (Internally Generated Revenue), which surpassed ₦400 billion an increase of more than 221 per cent compared with 2024. FAAC receipts rose to ₦230 billion, outpacing the projected ₦150 billion by 53 per cent. Total inflow reached ₦826 billion, representing 85 per cent of the 2025 projection.
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Education Tops 2026 Allocations
The 2026 budget strongly favours human capital development, with the education sector receiving the largest share 32.27 per cent for the second consecutive year.
The government plans to build on its completed 260 Smart Primary Schools by rolling out Smart Secondary Schools and modernising technical colleges as part of its skilled workforce strategy.
Health receives 10 per cent of the budget, focusing on completing 260 primary healthcare centres, upgrading 51 secondary health facilities, and finalising the 300-bed Enugu International Hospital.
The economic sector receives the highest sectoral allocation ₦825.9 billion (51 per cent) followed by the social sector with ₦644.7 billion (40.1 per cent).
Transport, Housing, Infrastructure Push
Governor Mbah’s 2026 plan also places major emphasis on transport and infrastructure. The government is set to construct five new transport terminals in Emene, Udi, Awgu, 4-Corners and Obollo Afor. The state also plans to deploy 2,000 new city taxis and expand Enugu Air’s fleet to 20 aircraft with the addition of 14 new planes.
The administration targets the construction of 1,200 urban roads and substantial rural road upgrades in 2026. Major dual carriageway Owo–Ubahu–Ikem, Abakpa–Ugwogo–Opi and the Enugu–Abakaliki Expressway are billed for completion.
Housing receives more than 15 per cent of the budget, with plans to deliver 15,000 mass housing units in the first phase of a 30,000-unit scheme and complete the new Enugu Smart City. The government projects ₦300 billion in housing-related revenue next year.
Agriculture, Security and Social Welfare
In agriculture, the state plans to complete 260 farm estates each spanning 200 hectares along with expanded mechanisation and processing facilities.
Security spending includes ₦11 billion for the second phase of Enugu’s AI-powered surveillance network, following what the governor described as an 80 per cent reduction in violent crime.
For social welfare, the budget makes provisions for clearing ₦20 billion in outstanding gratuities, salary upgrades for traditional rulers, and settlement of former councillors’ severance benefits.
Long-Term Growth Engines
The government identifies several transformational projects including new bus terminals, the International Conference Centre, the revitalised Hotel Presidential, revived industrial assets and the expansive New Enugu City as new economic engines. Reforms such as the state’s digitised land system (ENGIS) and tourism upgrades at Awhum, Ngwo, Okpatu, Nsude, Akwuke Sand Beach and the state’s upcoming zipline attraction are expected to boost non-oil revenue.
Governor Mbah said the state’s GDP trajectory remains on course toward a $30 billion target, driven by broad-based expansion and a deliberate push to reduce reliance on federal allocations.
Describing the 2026 plan as a “responsible reach,” Mbah said the budget is ambitious but grounded in revenue growth trends and strengthened governance systems. “This is the year Enugu moves from laying foundations to delivering system-wide transformation,” he said.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
