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 proposed budget represents a significant 78 per cent increase over the 2025 budget size of ₦807 billion. Governor Uzodimma attributed the sharp rise to improved allocations from the Federation Accounts Allocation Committee (FAAC), increased Internally Generated Revenue (IGR), and his administration’s determination to drive large-scale infrastructure development and reduce dependence on generator-powered electricity.
According to the budget breakdown, ₦238.5 billion—about 16.6 per cent of the total estimate—has been allocated to recurrent expenditure. This covers personnel costs, overheads, and statutory subventions.
A substantial ₦1.20 trillion, representing 83.4 per cent of the total budget, is earmarked for capital expenditure. The governor said this heavy capital allocation underscores the state government’s commitment to infrastructure, economic expansion, and long-term development.
The 2026 budget is anchored on the Federal Government’s Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). Key macroeconomic assumptions include a projected Gross Domestic Product (GDP) growth rate of 3.24 per cent and an inflation rate of 18.02 per cent. Other projections include an exchange rate of ₦1,512 to the US dollar and a benchmark oil price of $64.30 per barrel, with production estimated at 1.84 million barrels per day.
Governor Uzodimma acknowledged existing economic headwinds, such as a high debt service-to-revenue ratio, infrastructure gaps in power and transportation, rising unemployment and poverty, and ongoing security challenges. He also noted that global crises, including the Russia–Ukraine war and the Gaza conflict, have contributed to economic instability.
He assured lawmakers that the proposed budget is aimed at accelerating economic growth, boosting productivity, and improving the living standards of Imo State residents.
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