The Oyo State Government, through Commissioner for Budget and Economic Planning, Prof. Musibau Babatunde, on Tuesday reaffirmed its commitment to lifting residents from poverty to prosperity as outlined in the Oyo State Roadmap to Sustainable Development (2023‑2027). Presenting the 2026 budget proposal of ₦891.98 billion, Prof Babatunde highlighted that the budget is designed to expand the state’s economy, with capital expenditure accounting for 56.7 % (₦502.8 billion) and recurrent spending at 43.3 % (₦389.1 billion). He emphasized that the budget reflects the core needs of citizens across all zones, was built through broad stakeholder collaboration, and will be reviewed flexibly each quarter to ensure effective implementation.
Professor Babatunde noted that the 2026 Budget proposal of ₦891.98 billion would make a massive impact on expanding the economy of the state and bettering the lives of residents.
Speaking at the budget breakdown session, an annual event where the Commissioner for Budget and Economic Planning breaks down the budget proposal while also giving insights into the performance of the previous budget, Babatunde said the total capital expenditure accounts for ₦502.8 billion, representing 56.7 per cent, while the recurrent expenditure stands at ₦389.1 billion, representing 43.3 per cent.
The Commissioner explained that the proposal reflects the core needs of citizens across all zones of the state, describing the budget as a guide that will continue to evolve rather than a rigid document.
He recalled how the Makinde administration reduced the budget it inherited in 2019 by 25 per cent, because the state didn’t have the capacity to sustain the budget.
Babatunde maintained that the decision of the administration shaped a long-term principle that budgets must remain flexible and open to review.
He added that the 2026 budget proposal was designed through a broad collaboration involving the Ministry of Budget and Economic Planning, the Ministry of Finance, peer finance bodies, and other critical stakeholders.
He said: “We take everything together at the end of every quarter and share the performance openly. The second quarter review has already been concluded, with subsequent reviews to follow in the same manner,” Prof. Babatunde explained.
He maintained that the decision of the government to engage the citizenry in budget planning allows citizens to raise concerns across education, security, agriculture, and health, noting that ministries and agencies are now required to state the exact location of each project, the target communities, and the facilities involved.
“This level of specificity helps prevent vague proposals and reduces the risk of abandoned projects,” he added.
Speaking on how such engagements have helped to enhance budget performance, Prof Babatunde noted that the state achieved over 70 per cent budget performance in the outgoing 2025 fiscal year on the average in terms of projections on revenue and expected expenditure.
The Commissioner pointed out that the state’s ongoing investment in improving the security architecture has helped to prevent major incidents despite the state’s proximity to high-risk areas.
On infrastructure, he maintained that the government has recorded massive achievements, adding that road rehabilitations and constructions are also part of the broader plans embedded in the 2026 budget, as residents often judge an administration by the roads it has built or rehabilitated.
Speaking further on the breakdown of the budget, he said: “The 2026 budget distributes a total of ₦891.98 billion across key sectors in the state. ₦155.21 billion, representing 17.40 per cent of the entire provision has been earmarked for the education sector, while agriculture will receive ₦19.99 billion, amounting to 2.24 per cent.
“The health sector is proposed to receive ₦70.85 billion, which accounts for 7.94 per cent, while infrastructure attracts one of the largest portions with ₦210.03 billion, reflecting 23.55 per cent.
“The remaining sectors grouped as others collectively took ₦435.91 billion, making up 48.87 per cent of the total budget.”
Speaking on the revenue projections for the 2026 fiscal year, Babatunde said ₦140.08 billion is projected to come from statutory allocation; ₦199.72 billion from Value Added Tax; ₦51.18 billion from other FAAC distributions; ₦322.54 billion from capital receipts and loans and ₦4.73 billion from grants.
He added that internally generated revenue will account for ₦73.35 billion, while special BIR revenue stands at ₦20.19 billion.
The Budget Commissioner linked these projections to ongoing flagship projects aimed at repositioning Oyo State for regional and global competitiveness, saying the Oluyole Free Trade Zone, Special Agro-Processing Zones, the dry port and logistics hub, the upgrade of the Samuel Ladoke Akintola Airport, and the 110-kilometer Rashidi Ladoja Circular Road are parts of such flagship projects.
He noted that the state has increased its revenue without raising taxes, crediting automation and improved efficiency for the gains, adding that the Oyo State 2026 Budget was prepared against the backdrop of continuing global and national economic challenges.
“Oyo State is expected to sustain its growth momentum, provided that the broader macroeconomic headwinds, such as inflation, exchange rate volatility, and high energy and input costs, remain contained.
“Hence, the need for a strategic shift from consumption-led growth to a robust production-oriented economy, with strong emphasis on agriculture, manufacturing, the digital economy, human capital development, and the creative industries.
“The Budget of Economic Expansion reflects our commitment to deepening the state’s economic base, strengthening local enterprise, improving human capital outcomes, expanding critical infrastructure, and reinforcing social protection systems that support resilience,” the Commissioner added.
He maintained that the flagship projects mentioned earlier and ongoing investments will position the state as a production-led economy, stating that initiatives such as the African Continental Free Trade Area (AFCFTA) will enable local producers to access the continent’s integrated markets, while the Oluyole Free Trade Zone was designed to attract manufacturing, assembly plants, and export-oriented industries.
He concluded that other initiatives such as the Special Agro-Processing Zones (SAPZ) will transform primary agricultural outputs into higher-value products, reduce post-harvest losses, and boost agro-industrialisation; the Dry Ports and Logistics Hubs will strengthen Oyo’s competitiveness in trade, reduce transportation costs, and enhance supply chain efficiency, while the upgrade of the Airport to an International Standard will position the state as a regional logistics and investment hub.
On the Ibadan Circular Road, the Commissioner explained that the project will strengthen regional connectivity and catalyse economic growth by linking key transport and commercial hubs along emerging urban and industrial zones.
Addressing concerns over when the state’s venture into the AfCFTA would begin to yield results, the Special Adviser to the Governor on AfCFTA and International Trade, Ms Theodore Tlhaselo, clarified that while the concerns remained valid, the programmes and initiatives of the institution would speak directly to the yearnings of the people.
She explained that Oyo State has been strategically positioned to leverage its edge as an agribusiness investment destination to create jobs and make life more meaningful for the people of the state.
In attendance at the session were the Special Adviser on Economic Planning, Hon Simeon Oyeleke: Executive Assistant on Budget and Economic Planning, Alhaji Gafar Bello; Senior Special Assistant on Economic Planning, Mr Kehinde Ogunsanya; and the Permanent Secretary of the Ministry of Budget and Economic Planning, Mr Tunde Ayanleke, among others.
