By Chidi Nkwopara
Imo State Governor, Senator Hope Uzodimma, yesterday presented a N1.44 trillion budget proposal to members of the Imo State House of Assembly, branding it the “Budget of Economic Breakthrough.”
The governor noted that the proposed budget represents a 78 percent increase over the 2025 budget of N807 billion. He attributed the growth to improved FAAC allocations, increased internally generated revenue (IGR), and his administration’s ambition to transition from a generator-based power economy while delivering world-class infrastructure.
Recurrent Expenditure
The budget allocates N238.5 billion, representing 16.6 percent of the total, to recurrent expenditure. This covers personnel costs, overheads, and subventions.
Capital Expenditure
A total of N1.20 trillion, equivalent to 83.4 percent of the budget, is earmarked for capital projects. Governor Uzodimma described this allocation as a clear signal of the government’s commitment to infrastructural development and economic growth.
Macroeconomic Framework
The 2026 budget is anchored on the Federal Government’s Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). Key projections include:
Gross Domestic Product growth rate of 3.24%
Inflation rate of 18.02%
Exchange rate pegged at ₦1,512/USD
Benchmark oil price of $64.30 per barrel with a production volume of 1.84 million barrels per day
The governor acknowledged prevailing economic challenges, including a high debt service-to-revenue ratio, infrastructural deficits in power and transportation, high unemployment and poverty, as well as insecurity. He also noted that international crises, including the Ukrainian and Gaza conflicts, have further deepened economic instability.
Governor Uzodimma emphasized that the proposed budget is designed to accelerate economic growth, enhance productivity, and improve living standards for residents of Imo State.
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