Otu presents ₦987.8 billion budget for 2027 and allocates ₦708.43 billion for capital projects

Otu presents ₦987.8 billion budget for 2027 and allocates ₦708.43 billion for capital projects

Goodness Ekpang

Calabar (Core Reporters) – Cross River State Governor, Senator Bassey Edet Otu, on Wednesday presented a ₦987.8 billion budget proposal for the fiscal year 2027 in the state House of Assembly, christening it the Budget of Consolidation and Renewed Hope.

The governor reaffirmed his administration’s commitment to sustainable development, fiscal discipline and inclusive economic growth, with capital expenditures accounting for 71.72 percent of the proposed budget.

Presenting the estimates in Calabar, Otu described the budget as more than an aggregation of figures, calling it “a solemn and sacred covenant charged with the trust, expectations and aspiration of the people for the improvement of their livelihoods”.

He said successful implementation will depend on prudent resource management, accountability and disciplined public spending, underlining his administration’s determination to translate the social contract with people into tangible improvements in their living conditions.

The proposed budget, valued at ₦987,808,089,235.92, represents an increase of approximately 2.57% over the 2026 budget.

Capital expenditure stands at ₦708.43 billion, which is 71.72% of the total estimates, while recurring expenditure is pegged at ₦279.38 billion, or 28.28%.

According to the governor, the large capital allocation reflects the administration’s desire to prioritize infrastructure, human capital development and productive investments that stimulate economic activity across the state.

Otu explained that the 2027-2029 medium-term expenditure framework and fiscal strategy document provided the basis for the estimates, adding that the budget will support ongoing programs while creating new opportunities for investment, job creation and improved public service delivery.

“The imperative of this exercise underlines our collective resolve to chart a sustainable path for the growth and development of our dear state,” he said.

No new loans from 2023

Addressing concerns about the state’s debt profile, Otu argued that his administration has not obtained any new internal or external borrowings since he assumed office in 2023.

Citing data from the National Bureau of Statistics and the Debt Management Office, he said Cross River remained among the states that did not take out new loans during the period.

He attributed the burden of existing debt to obligations inherited from previous administrations, explaining that debt servicing limited resources available for development projects.

The governor also clarified that the naira value of the state’s external debt has been affected by currency devaluation and foreign exchange liberalization.

“I cannot and will never mortgage the future of our children with unaffordable loans,” he declared.

He pledged to strengthen domestically generated revenues, maximize federal appropriations, and attract development assistance and private sector investment to finance the State’s development priorities.

The budget for 2026 rises to ₦963.07 billion

Reviewing the performance of the 2026 budget, Otu recognized the challenges posed by exchange rate volatility, rising operating costs, supply chain disruptions and inherited debt obligations.

He disclosed that his administration worked with the legislature to enact a supplementary budget, increasing the spending framework to ₦963.07 billion to address urgent interventions and counter-financing requirements.

Among the achievements highlighted is the delivery of more than 608 kilometers of interconnected road projects across the three senatorial districts.

The projects include the Nsan–Oban road in Akamkpa, the Adiabo–Ikoneto road in Odukpani and the Yahe–Ebo–Wanakade road in Yala.

He also reported progress in rural electrification through the installation of solar street lights, mini-grids and the rehabilitation of electricity grids.

According to him, the interventions are designed to reopen economic corridors, improve mobility and restore commercial activities in disadvantaged communities.

Agriculture gets ₦28.2 billion

Agriculture figured prominently in the governor’s briefing on the administration’s economic transformation agenda.

Otu revealed that more than 20,000 bags of fertilizer have been distributed to 8,000 farmers, while over one million improved seedlings of oil palm, cowpea and cocoa have been supplied to farmers across the state.

He also highlighted the establishment of a 50,000-hectare rice project and support for more than 5,300 livestock farmers, as well as the provision of loans, grants and agricultural machinery to smallholders and large-scale producers.

According to him, an offtake agreement of ₦18 billion had helped advance the state’s agricultural initiatives, while the cash crop revolution was strengthening the productive capacity of farmers.

“There is no food security without agriculture,” he said, adding that the government intends to position Cross River as Nigeria’s leading cocoa and oil palm producing state through the expansion of cultivation, mechanization, agriculture-related industries and partnerships with the private sector.

The 2027 budget allocates ₦28.2 billion for agriculture.

Health and education receive significant allocations

On public sector health, education and welfare, Otu outlined interventions aimed at improving access, strengthening institutions and improving service delivery.

He cited the renovation and rehabilitation of hospitals as well as the establishment of medical oxygen plants in Calabar and Ogoja in collaboration with UNICEF.

The governor also highlighted strengthening the state’s nursing and midwifery schools to meet accreditation standards, along with 95% routine vaccination coverage.

Other interventions include implementing the consolidated medical salary structure for healthcare workers and increasing the retirement age of healthcare workers from 60 to 65 years.

The proposed budget allocates ₦85.4 billion for health.

In the field of education, Otu said the state has allocated more than ₦17 billion in Universal Basic Education Commission intervention funds to support educational development.

He added that government supported the construction and rehabilitation of classrooms, paid West African Examinations Council (WAEC) examination fees for 43,694 indigenous people in Cross River and approved the promotion of over 14,000 teaching and non-teaching staff.

The administration, he said, aims to increase the state’s literacy rate from an estimated 80.7% to 98%, while strengthening technical and vocational education to provide young people with employment and entrepreneurial skills.

Education receives ₦99.6 billion in the proposed 2027 budget.

Otu also reaffirmed his administration’s commitment to free and compulsory education from primary to lower secondary school, along with the payment of WAEC examination fees for public school students.

₦246.1 billion for infrastructure

Infrastructure has the largest explicitly listed sector allocation, with ₦246.1 billion allocated to the sector.

Other allocations include ₦21.8 billion for aviation, ₦20.2 billion for the House of Assembly, ₦19.1 billion for the judiciary, ₦16.6 billion for energy and ₦11.3 billion for tourism.

The governor said the estimates will align with the United Nations Sustainable Development Goals, ensure continuity of uncompleted projects and direct resources toward the state’s strategic priorities.

He also promised continued investments in forest conservation, green economy, justice infrastructure, security and youth empowerment.

Regarding the judicial sector, Otu promised adequate funding for ongoing judicial projects and further improvements in the working conditions of judicial officers.

He urged the institution to pursue reforms that would strengthen public confidence in the administration of justice.

Aviation, transport, maritime development

The governor identified aviation, transportation, maritime development and tourism as important components of the state’s economic diversification strategy.

He revealed that a new Bombardier CRJ regional jet has been integrated into the state’s aviation assets, bringing the fleet to five aircraft.

He also reported accelerated construction works at the Obudu International Passenger and Cargo Airport.

In the transportation sector, Otu highlighted the acquisition of 730 electric vehicles, including intercity and subway buses, tricycles and motorcycles, to reduce commuting costs and promote cleaner transportation.

The budget allocates ₦21.8 billion for aviation.

Regarding marine development, the governor said the Bakassi Deep Seaport has obtained federal government approval and a certificate of compliance and is awaiting the start of construction.

He estimated the expected private sector investment in the project at about $3.5 billion.

Otu also cited the formal reaccreditation of Cross River as a littoral state by the federal government, describing the development as strategic to the state’s maritime ambitions.

“Our overall goal in this industry is to transform our aviation business model into a highly profitable, self-sustaining revenue resource for the state,” he said.

Otu seeks Assembly support

Concluding his presentation, the governor pledged to support a responsive administration that remains prudent in its management of public resources and accountable to the electorate.

He underlined the importance of harmonious relations between the executive, legislature and judiciary, describing institutional cooperation as indispensable for peace, stability and shared prosperity.

Otu formally called for the Assembly’s consideration and timely approval of the ₦987.8 billion appropriation bill, expressing confidence that its implementation would accelerate economic growth and improve the well-being of Cross River residents.

“My administration will continue to be sensitive to the wishes of citizens, prudent in the management of state resources and responsible to the people,” he assured.

He later presented the estimates under the slogan Shared Prosperity Budget, calling on legislators and other stakeholders to work collectively to build a more prosperous, inclusive and economically resilient Cross River State.