Group calls for full domestication of Fiscal Responsibility Act in Abia 2026 Budget Implementation

Uchenna Johnson

Awka

 A civil rights group, the African Centre for Human Advancement and Resource Support, CHARS-Africa has expressed concerns over the bogus figure designated for capital expenditure in the 2026 Abia State Appropriation Bill.

Recall that in the draft estimate for the state’s income and expenditure presented the Abia State legislature earlier this week, the State Governor, Dr Alex Otti had budgeted over N800 billion for capital expenditure.

But, the CHARS-Africa fears that with the allocation to capital projects, the risk of inflated contracts, cost overruns, abandoned projects and procurement abuse cannot be ruled out.

In a review of the Budget Proposal titled “Budget of Acceleration and New Possibilities’, the CHARS-Africa Executive Director, Amaka Biachi harped on the need for the government to make all procurement processes under the 2026 budget open, competitive and transparent, adding that contract awards, project costs, timelines, contractors and funding sources must also be publicly disclosed.

She insisted that independent monitoring and social accountability mechanisms should be institutionalized to guarantee value for public money.

The group observed what it called a lack of demonstrable citizens’ participation in the formulation of the budget, warning the government against over-concentration on infrastructure at the expense of social services.

On the indication in the proposed 2026 budget, of a deficit of approximately ₦409 billion, to be financed through borrowing, the group expressed concern that borrowing at such scale, in the absence of disclosed loan terms and conditions; medium-term debt repayment plan; and public debt sustainability analysis, poses risks to future social spending and inter-generational equity.

CHARS-Africa, however, acknowledged some laudable policy directions and commitments in the budget proposal, including strong capital investment orientation, particularly in roads, public transport, energy, housing and urban renewal; sustained prioritisation of education and health; resuscitation of dormant economic assets, and improved revenue performance outlook.

These directions, it noted, if implemented transparently and equitably, have the potential to promote social development, economic inclusion and improved quality of life for the people of Abia State.

It urged the state government, before the final passage of the Appropriation Bill, to ensure immediate publication of the full 2025 Budget Performance Report, detailing expenditures, project status and supplementary spending.

“We also call for public disclosure of the borrowing framework for 2026, including loan terms, repayment schedules and debt sustainability safeguards.

“CHARS- Africa advocates the adoption of an open and accountable procurement regime, with public access to contract details and project monitoring data, as well as the protection and ring-fencing of social sector allocations, particularly education, healthcare, social welfare and environmental protection.

“We also call for the domestication and full implementation of the Fiscal Responsibility Act in Abia State, and proper implementation of its principles, including medium-term fiscal planning, debt limits, transparency obligations and independent oversight.

“The 2026 budget presents an opportunity to consolidate development gains and deepen democratic governance in Abia State. However, development without accountability will remain unsustainable, while fiscal ambition without transparency erodes public trust.

“CHARS-Africa calls on all concerned to monitor the budget process, engage stakeholders, and defend the rights of citizens to transparency, participation and responsible governance.

“Abia deserves a budget that is realistic, inclusive, accountable, transparent and lawful, not merely ambitious,” Biachi insisted.