Otu Presents ₦987.8bn 2027 Budget, Allocates ₦708.43bn to Capital Projects

Otu Presents ₦987.8bn 2027 Budget, Allocates ₦708.43bn to Capital Projects

By Goodness Ekpang

Calabar (Core Reporters) – Cross River State Governor, Senator Bassey Edet Otu, on Wednesday presented a proposed ₦987.8 billion budget for the 2027 fiscal year to 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 expenditure accounting for 71.72 per cent of the proposed budget.

Presenting the estimates in Calabar, Otu described the budget as more than an aggregation of figures, characterising it as “a solemn and sacred pact laden with the trust, expectation and aspiration of the people for their improved livelihoods.”

He said successful implementation would depend on prudent resource management, accountability and disciplined public expenditure, stressing his administration’s determination to translate its social contract with the 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 per cent over the 2026 budget.

Capital expenditure stands at ₦708.43 billion, representing 71.72 per cent of the total estimates, while recurrent expenditure is pegged at ₦279.38 billion, or 28.28 per cent.

According to the governor, the substantial capital allocation reflects the administration’s resolve to prioritise infrastructure, human capital development and productive investments capable of stimulating economic activities across the state.

Otu explained that the 2027–2029 Medium-Term Expenditure Framework and Fiscal Strategy Paper provided the foundation for the estimates, adding that the budget would sustain ongoing programmes while creating new opportunities for investment, employment generation and improved public service delivery.

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

No Fresh Loans Since 2023

Addressing concerns over the state’s debt profile, Otu maintained that his administration had not obtained fresh domestic or external loans since assuming 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 had not contracted new loans during the period.

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

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

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

He pledged to strengthen internally generated revenue, maximise federal allocations and attract development assistance and private-sector investment to finance the state’s development priorities.

2026 Budget Rises to ₦963.07bn

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

He disclosed that his administration had worked with the legislature to enact a supplementary budget, increasing the spending framework to ₦963.07 billion to accommodate urgent interventions and counterpart-funding requirements.

Among the achievements highlighted was the delivery of more than 608 kilometres 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 streetlights, mini-grids and the rehabilitation of electricity networks.

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

Agriculture Gets ₦28.2bn

Agriculture featured prominently in the governor’s account of the administration’s economic transformation agenda.

Otu disclosed that more than 20,000 bags of fertiliser had been distributed to 8,000 farmers, while over one million improved oil-palm, cowpea and cocoa seedlings had been provided 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, alongside the provision of loans, grants and agricultural machinery to smallholder and large-scale producers.

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

“There is no food security without agriculture,” he said, adding that the government intended to position Cross River as Nigeria’s leading cocoa and oil-palm-producing state through expanded cultivation, mechanisation, agro-allied industries and private-sector partnerships.

The 2027 budget allocates ₦28.2 billion to agriculture.

Health, Education Receive Major Allocations

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

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

The governor also highlighted the upgrading of state-owned Schools of Nursing and Midwifery to meet accreditation standards, alongside a reported 95 per cent routine immunisation coverage.

Other interventions include the implementation of the Consolidated Medical Salary Structure for medical workers and an increase in the retirement age of health workers from 60 to 65 years.

The proposed budget allocates ₦85.4 billion to health.

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

He added that the government had supported classroom construction and rehabilitation, paid West African Examinations Council (WAEC) examination fees for 43,694 Cross River indigenes and approved the promotion of more than 14,000 teaching and non-teaching staff.

The administration, he said, was targeting an increase in the state’s literacy rate from an estimated 80.7 per cent to 98 per cent, while strengthening technical and vocational education to equip young people with employable 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 junior secondary school, alongside the payment of WAEC examination fees for public-school students.

₦246.1bn for Infrastructure

Infrastructure has the largest explicitly listed sectoral allocation, with ₦246.1 billion earmarked for 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 power and ₦11.3 billion for tourism.

The governor said the estimates would align with the United Nations Sustainable Development Goals, ensure continuity in unfinished projects and direct resources towards the state’s strategic priorities.

He also pledged continued investment in forest conservation, the green economy, judicial infrastructure, security and youth empowerment.

On the judiciary, Otu promised adequate funding for ongoing court 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 disclosed that a new Bombardier CRJ regional jet had been integrated into the state’s aviation assets, bringing the fleet to five aircraft.

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

In the transportation sector, Otu highlighted the acquisition of 730 electric vehicles, comprising inter-city and metropolitan buses, tricycles and motorcycles, to reduce commuting costs and promote cleaner transportation.

The budget allocates ₦21.8 billion to aviation.

On maritime development, the governor said the Bakassi Deep Seaport had secured Federal Government approval and a Certificate of Compliance and was awaiting the commencement of construction.

He put the anticipated private-sector investment in the project at approximately $3.5 billion.

Otu also cited the Federal Government’s formal re-accreditation of Cross River as a littoral state, describing the development as strategic to the state’s maritime ambitions.

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

Otu Seeks Assembly’s Support

Concluding his presentation, the governor pledged to sustain a responsive administration that would remain prudent in managing public resources and accountable to the electorate.

He emphasised the importance of harmonious relations among the executive, legislature and judiciary, describing institutional cooperation as indispensable to peace, stability and shared prosperity.

Otu formally sought the Assembly’s consideration and timely passage of the proposed ₦987.8 billion Appropriation Bill, expressing confidence that its implementation would accelerate economic growth and improve the welfare of Cross River residents.

“My administration shall continue to be responsive to the yearnings of the citizenry, prudent in the management of the state’s resources and accountable to the people,” he assured.

He subsequently presented the estimates under the banner Budget of Shared Prosperity, calling on lawmakers and other stakeholders to work collectively towards building a more prosperous, inclusive and economically resilient Cross River State.