Oyo State has planned to spend N502.8 billion, representing 56.7 per cent of the NN891,985,074,480.79 budget proposes for Year 2026 on capital projects.
This was contained in the spending plan presented to the state lawmakers for legislative review and approval by Governor, ‘Seyi Makinde,.
The proposed budget, which aimed at further growth of the state economy, is to improve on the several flagship projects and ongoing investments which have positioned Oyo State as a self-sufficient state that is ready for global market integration.
Breakdown of the 2026 budget proposal shows N389.1 billion or 43.3 per cent is proposed for recurrent expenditure.
Governor Seyi Makinde said nfrastructure would get N210.02 billion, which represents 23.55 per cent of the total budget estimate, while the education sector would get N155.2 billion, representing 17.40 per cent, which is above the UNESCO recommendation for education.
He added that the health sector would get a total of N70.8 billion, representing 7.94 per cent, while agriculture will get N19.9 billion, which represents 2.24 per cent of the total budget.
The budget is to be funded by the state’s internally generated revenue, which the Governor said had improved but silent on the amount to plough into the budget.
He explained that the Internally Generated Revenue (IGR) of the state had increased without increasing the tax burden on people, noting that this was made possible through the 2025 budget, which according to him, stabilised the economy for the growth of the state.
“Mr Speaker, Honourable members of the Oyo State House of Assembly, today I stand before you to present the penultimate budget proposal by our administration, which we have tagged the ‘Budget of Economic Expansion.’
“Under our 2025 Budget of Economic Stabilisation, we consolidated on the economic gains from previous budgets.
“And so, for 2026, it is only logical that we press on further growth of the state’s economy.
“Mr. Speaker, several flagship projects and ongoing investments now position our state for a production-led economy. One of these is the Africa Continental Free Trade Area initiative. This will enable local producers to access the continent’s integrated markets. The next one is the Oluyole Free Trade Zone. This is designed to attract manufacturing, assembly plants, and export-oriented industries. Another one is the Special Agro-Processing Zones, SAPZ. This will transform primary agricultural outputs into higher-value products and boost agro-industrialisation.
“We also have the dry pot and logistics hub — this is strengthening Oyo’s competitiveness in trade and enhancing supply chain efficiency. And the upgrading of Samuel Ladoke Akintola Airport to international standards is positioning the state as a regional logistics and investment hub.
“There is also the 110-kilometre Rashidi-Ladoja Circular Road and its development corridor – This is strengthening regional connectivity and catalyzing economic growth by linking key transport and commercial hubs. This project represents a decisive policy shift toward industrial productivity, export competitiveness, and global market integration, justifying the theme of economic expansion.
“Mr. SpeakerHonourablele members of the House, less than two weeks ago, we commissioned the now-completed Ibadan Central Bus Terminus 1 and 2 at Iwo Road and New Ife Road. So, Ibadan can now boast of four modern bus terminals supported by a state-backed transport system. And these buses, we have been subsidising them since 2023. They have made mobility easier for workers, for traders, and for students, not to talk of our elderly people, our people that are challenged. They all benefit from that subsidy.
“In September, we also completed Phase 1 of the Ibadan International Airport Upgrade Project. Today, Oyo State can receive wide-bodied aircraft. This is an achievement that opens our economy to global logistics, tourism, and investment opportunities.
“We have welcomed new investors, and we have broken ground for the Oyo State Agribusiness Industrial Hub, Ijaye, building on the success of the Fasola model. Our 2025 performance strengthened fiscal resilience.
“We improved internally generated revenue through automation and efficiency without overburdening citizens with new taxes. I promised when I was campaigning in 2018-2019 that there would be no new taxes in Oyo State. I am happy to report that we have improved our internally generated revenue with no new taxes. Businesses thrived. Workers were paid promptly. The promise I made on May 29, 2019, that on the 25th of every month, workers will receive their salaries, has been kept. Social services have continued without disruption.
“These achievements, made possible by the 2025 budget, have stabilised our economy, created jobs, and expanded our base for sustainable growth.
“We stand at the threshold of a new chapter. The 2026 Budget of Economic Expansion, totaling N891,985,074,480.79 builds on the foundation of stability to drive productivity and inclusive growth. N502,846,477,812,985 is dedicated to capital expenditure while N389,138,596,667.94 will go to recurrent expenditure.”
Governor Makinde also pointed out that Oyo State will mark its 50th anniversary in February 2026, stating that the event will be a celebration of the creativity and the uniqueness of the people of Oyo State and also become a platform to write the story of the state for future generations.
Speaker of the House of Assembly, Adebo Ogundoyin, commended the remarkable strides made under the 2025 “Budget of Economic Stabilisation.”
He noted that the balanced distribution of the budget across the sectors demonstrated a commitment to strategic priorities, inclusive growth, and long-term sustainability, in line with the state’s Medium-Term Expenditure Framework (MTEF 2026–2028).
While promising continuous collaboration with the Executive and other arms of government to implement policies and programmes that uplift the people and transform the state, the Speaker equally assured of judicious implementation of the budget and accountability of all projects to deliver measurable impact in the state. [InsideBusinessNG]
Stay ahead with the latest updates! Join The ConclaveNG on WhatsApp and Telegram for real-time news alerts, breaking stories, and exclusive content delivered straight to your phone. Don’t miss a headline — subscribe now!
