The Oyo State Government has clarified the status of the ₦50 billion federal intervention fund approved for the reconstruction of Old Bodija and adjoining communities after the devastating January 16, 2024 explosion in Ibadan, disclosing that the ₦30 billion so far released by the Federal Government remains untouched in a dedicated bank account.
In a statement issued by the Commissioner for Budget and Economic Planning, Professor Musibau Babatunde, the state government dismissed allegations of fund misappropriation levelled by former Ekiti State Governor, Ayodele Fayose, and the Oyo State chapter of the APC, describing them as misleading and politically motivated.
According to the statement, Governor Seyi Makinde formally requested federal intervention on January 19, 2024, just days after the explosion that claimed lives, destroyed properties and displaced residents. The letter to President Bola Ahmed Tinubu detailed immediate emergency actions already undertaken by the state, including search-and-rescue operations with heavy equipment, full medical treatment for victims, deployment of ambulances and medical personnel, as well as hotel accommodation for displaced residents—all funded by the state government.
Governor Makinde also sought federal support for debris evacuation, integrity tests and demolition of unsafe structures, compensation for victims, reconstruction of Old Bodija and surrounding areas, environmental impact assessments, and the strengthening of emergency response infrastructure. The total cost of the proposed interventions was estimated at ₦100 billion, out of which the Federal Government approved ₦50 billion solely for reconstruction works.
Following the approval, a special Infrastructure Support Account was opened by the Oyo State Government with First Bank of Nigeria. Of the approved sum, ₦30 billion was released through the Central Bank of Nigeria on November 4, 2024. However, the government stated that the funds have not been accessed as of December 31, 2025, stressing that members of the public are free to verify the account status with the bank.
The government explained that it has deliberately refrained from drawing from the fund because the balance of ₦20 billion has yet to be released by relevant federal agencies, nearly two years after the tragedy, without any official explanation.
Despite this delay, the state said it has continued to shoulder the financial burden of response and recovery efforts. As of January 1, 2026, Oyo State has expended ₦24.6 billion from its own resources, comprising ₦20.141 billion on infrastructure reconstruction and ₦4.085 billion paid as support and compensation to affected victims.
The statement further referenced documents circulated by Mr Fayose, indicating that ₦915.5 billion was approved nationwide as intervention funds, with some states receiving up to ₦150 billion. It noted that Oyo State received one of the least allocations, despite the magnitude of the Bodija disaster.
On transparency concerns, the government explained that intervention funds are treated as capital grants and are processed through standard budgeting and financial reporting procedures, adding that states are not mandated to issue special public announcements upon receipt of such funds.
Reaffirming its commitment to accountability, the Makinde administration cautioned against what it described as attempts by political actors to exploit the Bodija tragedy for partisan advantage. The government thanked residents for their patience and support, assuring them that efforts are ongoing to secure the release of the outstanding ₦20 billion to fully address the devastation caused by the explosion.