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Oyo State’s 2026 Budget: Prioritizing Production Over Consumption for Sustainable Growth
Governor ‘Seyi Makinde of Oyo State has unveiled the 2026 Budget, emphasizing a strategic shift away from consumption towards boosting production as the cornerstone for economic expansion. This approach aims to reduce the state’s reliance on federal allocations and foster self-sustaining growth.
Signing the 2026 Appropriation Bill: A Call for Unified Implementation
At the budget signing ceremony held at the Governor’s Office in Ibadan, Governor Makinde urged all stakeholders-including government officials, traditional leaders, labor unions, and residents-to collaborate closely to ensure the budget’s full execution. He highlighted that the administration has consistently adopted a pragmatic budgeting process over the past six years, resulting in improved fiscal discipline and performance.
Key Features of the N892 Billion Budget
The 2026 budget, valued at N892 billion, is designed to stimulate authentic economic growth by prioritizing productive investments over recurrent expenditures. Governor Makinde noted that while the budget is comprehensive, there remains flexibility for a supplementary budget later in the year should there be additional revenue or if ongoing projects begin to generate returns.
“This budget marks the final full-year plan of my administration. When we assumed office in 2019, we inherited a budget prepared by the previous government, which we trimmed by approximately 25% due to historically low implementation rates of around 37%. This prudent adjustment has since enhanced budget execution in Oyo State,” the governor explained.
Focusing on Infrastructure to Drive Economic Activity
Highlighting the administration’s commitment to production, Governor Makinde recounted efforts to rehabilitate the Oyo-Iseyin Road, a federal highway critical to the Fasola Farm Estate’s operations. Despite a two-year wait for federal approval, the road was eventually fixed, catalyzing increased economic activities in the area. This example underscores the administration’s resolve to “dare to be different” by investing in infrastructure that directly supports local industries.
Balancing Consumption with Production Capacity
Governor Makinde stressed the importance of aligning consumption with production capabilities. “Our goal is to consume within the limits of what we produce. By expanding production, we create room for increased consumption sustainably,” he said. He also reassured citizens of his commitment to serve diligently until the end of his tenure on May 29th, urging collective effort to maintain the momentum of budget implementation.
Prospects for Supplementary Budget and Fiscal Growth
The governor hinted at the possibility of revising the budget upward if mid-year financial surpluses or successful project outcomes occur, potentially pushing the budget closer to the N1 trillion mark. However, he emphasized that such growth would be grounded in data-driven decisions rather than arbitrary increases.
Appreciation for Collaborative Governance
Governor Makinde expressed gratitude to the Oyo State House of Assembly, traditional rulers, labor unions, and the general populace for their unwavering support. He acknowledged the critical role of traditional leaders in providing grassroots insights that shape effective policy and praised the peaceful relationship with labor unions, which has prioritized the state’s welfare over partisan interests.
Legislative Support and Oversight
Before the budget’s assent, Rt Hon. Adebo Ogundoyin, Speaker of the Oyo State House of Assembly, commended the legislature’s prompt and thorough review of the bill. He described the 2026 Budget as bold and transformative, designed to enhance the quality of life for Oyo residents. The Speaker assured continued legislative backing for initiatives that promote economic development, infrastructure improvement, and social welfare, alongside rigorous oversight to ensure every allocated naira delivers tangible benefits.
Focus on Transformational Projects
Prof. Musibau Babatunde, Commissioner for Budget and Economic Planning, highlighted that the 2026 budget centers on projects with high potential to position Oyo State as a global economic hub. This aligns with the administration’s vision of leveraging strategic investments to drive long-term prosperity.
Notable Attendees at the Budget Signing Ceremony
The event was graced by prominent figures including former Governor and Olubadan of Ibadanland, His Imperial Majesty Oba Rashidi Ladoja; Deputy Governor Barr. Abdulraheem Bayo Lawal; former deputy governors Engr. Hamid Gbadamosi and Barr. Hazeem Gbolarumi; former Speaker Senator Monsurat Sunmonu; and key members of the House Committee on Finance and Appropriation. Other dignitaries included the Chief of Staff Otunba Segun Ogunwuyi, Head of Service Mrs. Olubunmi Oni, labor and religious leaders, as well as traditional rulers.
