Uzodimma presents ₦1.44trn ‘Budget of Economic Breakthrough’ to Imo Assembly

Imo State Governor, Senator Hope Uzodimma, has presented a ₦1.44 trillion budget proposal for the 2026 fiscal year to the Imo State House of Assembly, describing it as the “Budget of Economic Breakthrough.”

The governor said the proposed budget represents a 78 per cent increase over the ₦807 billion approved for the 2025 fiscal year.

Uzodimma attributed the significant rise to improved allocations from the Federation Accounts Allocation Committee (FAAC), enhanced internally generated revenue (IGR), and the administration’s drive to transition Imo State from a generator-dependent power system while delivering world-class infrastructure.

Recurrent Expenditure

The proposal earmarks ₦238.5 billion, representing 16.6 per cent of the total budget, for recurrent expenditure. This covers personnel costs, overheads, and statutory subventions.

Capital Expenditure

A total of ₦1.20 trillion, equivalent to 83.4 per cent of the budget, is allocated to capital expenditure. Uzodimma said the heavy capital component underscores the government’s commitment to infrastructure development, industrial expansion, and economic growth.

Macroeconomic Assumptions

The 2026 budget is anchored on the Federal Government’s Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). The key assumptions include:

GDP growth rate: 3.24 per cent

Inflation rate: 18.02 per cent

Exchange rate: ₦1,512 to the US dollar

Benchmark oil price: $64.30 per barrel

Oil production: 1.84 million barrels per day

The governor acknowledged prevailing economic headwinds, including a high debt service-to-revenue ratio, infrastructural gaps in power and transportation, rising unemployment and poverty, as well as security challenges.

He also noted that global developments such as the Russia–Ukraine war and the Gaza conflict have further strained economic stability.

Uzodimma said the proposed budget is designed to accelerate economic growth, improve productivity, and enhance the standard of living of Imo residents.