Cross River Proposes N987.8bn 2027 Budget, Allocates 72% to Capital Projects

Cross River State Governor, Bassey Otu, on Wednesday presented a proposed N987.8 billion budget for the 2027 fiscal year to the State House of Assembly, with 71.72 per cent of the total expenditure earmarked for capital projects aimed at accelerating infrastructure development, agricultural productivity and economic growth.

The proposed appropriation, christened the “Budget of Consolidation and Renewed Hope,” represents an increase of 2.57 per cent over the 2026 budget of N963.07 billion, following supplementary adjustments.

Under the proposal, capital expenditure stands at N708.43 billion, representing 71.72 per cent of the total budget, while recurrent expenditure is pegged at N279.38 billion, or 28.28 per cent.

The allocation reflects the state government's emphasis on infrastructure expansion, economic development and job creation, while seeking to maintain fiscal discipline amid prevailing economic challenges.

Presenting the estimates in Calabar, Otu described the budget as a commitment to the aspirations of the people, stressing that its implementation would be guided by the need to sustain ongoing projects, open new investment opportunities and improve livelihoods across the state.

“This is more than an aggregation of figures. It is a solemn and sacred pact laden with the trust and aspiration of our people,” the governor said.

He explained that the budget was anchored on the 2027–2029 Medium Term Expenditure Framework and Fiscal Strategy Paper, which provides the policy and fiscal direction for the state's spending priorities over the medium term.

According to him, the proposed expenditure framework is designed to consolidate existing achievements while creating opportunities for further investment, employment and economic diversification.

Governor Pledges Fiscal Discipline

Otu also used the budget presentation to reaffirm his administration's commitment to prudent borrowing, declaring that the state had not contracted any fresh domestic or external loans since he assumed office in 2023.

He said the existing debt stock was largely inherited and had been affected by the depreciation of the naira and foreign exchange liberalisation, which increased the naira equivalent of external debt obligations and placed additional pressure on resources available for development.

The governor said his administration would prioritise improved internally generated revenue, effective utilisation of federal allocations, private-sector investment and donor funding to finance its development programmes.

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

His position comes amid continuing fiscal pressures on subnational governments, many of which face rising project costs, increased operating expenditure and debt-servicing obligations.

Otu said strengthening the state's revenue base remained central to the administration's strategy for funding infrastructure and social development without accumulating unsustainable liabilities.

Over 608 Kilometres Of Roads Delivered

Reviewing the implementation of the 2026 budget, the governor said the state recorded progress in infrastructure development despite exchange-rate volatility, high operating costs and supply-chain disruptions.

He disclosed that more than 608 kilometres of roads had been delivered across the three senatorial districts, improving connectivity between communities and supporting economic activities.

Among the projects highlighted were the Nsan–Oban road in Akamkpa Local Government Area, the Adiabo–Ikoneto road in Odukpani and the Yahe–Ebo–Wanakade road in Yala.

According to the governor, the projects were part of efforts to improve access to markets, facilitate the movement of agricultural produce and strengthen links between rural communities and urban centres.

He also cited interventions in rural electrification, including the installation of solar streetlights, development of mini-grids and rehabilitation of electricity networks.

The administration believes improved road infrastructure and electricity supply will help stimulate commercial activities, encourage private investment and expand economic opportunities in underserved communities.

The high capital allocation in the 2027 proposal is expected to sustain this infrastructure drive, although the ultimate impact will depend on revenue performance, procurement efficiency and the timely completion of projects.

Agriculture Takes Centre Stage

Agriculture is another major pillar of the administration's development agenda, with the governor highlighting interventions designed to increase food production, support farmers and strengthen agro-processing.

Otu disclosed that more than 20,000 bags of fertiliser had been distributed to 8,000 farmers, alongside the provision of over one million improved seedlings of oil palm, cocoa and cowpea.

He said the state was also pursuing a 50,000-hectare rice project, providing support to 5,300 livestock farmers and implementing an N18 billion produce offtake arrangement intended to reduce market risks for farmers and attract investment into agricultural value chains.

The offtake arrangement is particularly significant because guaranteed or structured markets can help farmers plan production, reduce the risk of unsold produce and encourage investment in improved farming methods.

For Cross River, the strategy also offers an opportunity to connect agricultural production with processing, storage, transportation and distribution, potentially creating jobs beyond primary farming.

“There is no food security without agriculture,” Otu said.

He added that the state was working towards becoming Nigeria's leading producer of cocoa and oil palm, commodities with significant potential for domestic processing, export earnings and rural employment.

Achieving that ambition, however, will require sustained investment in farm inputs, extension services, rural roads, storage facilities, processing plants and access to affordable financing.

Private Capital And Job Creation

The governor said the 2027–2029 fiscal framework would also seek to attract private capital and development-partner funding to complement government expenditure.

The proposed budget's emphasis on capital projects suggests that infrastructure, agriculture and other productive sectors will remain central to the state's development strategy.

Beyond the construction of roads and other public assets, the effectiveness of the spending plan will depend on its ability to stimulate productive economic activities, expand employment and improve the operating environment for businesses.

For agricultural communities, improved transport infrastructure and reliable electricity could reduce production and distribution costs. For investors, consistent policies, transparent project implementation and predictable government payments would be important considerations in committing capital to the state.

The proposed N987.8 billion budget will therefore be judged not only by the amount appropriated for development but also by the quality of projects executed and the benefits delivered to residents.

Implementation Will Be Key

With capital expenditure accounting for nearly three-quarters of the proposed budget, Cross River is signalling a strong preference for infrastructure and investment-led development.

However, the modest 2.57 per cent increase over the adjusted 2026 budget also underscores the importance of effective resource mobilisation and expenditure management in achieving the state's ambitions.

The government will need to ensure that projected revenues are realistic, that funds are released promptly for priority projects and that expenditure is monitored to prevent waste and delays.

Agricultural initiatives will similarly require transparent implementation and measurable results, particularly in ensuring that fertiliser, improved seedlings and other forms of support reach intended beneficiaries.

The N18 billion agricultural offtake arrangement and the proposed expansion of rice, cocoa and oil palm production could provide opportunities to strengthen the state's agricultural economy if supported by adequate infrastructure and reliable market access.

As the proposal moves through the State House of Assembly, legislative scrutiny will provide an opportunity to examine the assumptions underpinning the estimates, assess the distribution of resources among sectors and ensure that spending priorities align with the needs of the people.

Ultimately, the success of the Budget of Consolidation and Renewed Hope will depend on whether its substantial capital allocation translates into completed projects, stronger agricultural value chains, increased private investment and improved living standards across Cross River State.