The Oyo State House of Assembly has passed the 2026 Appropriation Bill into law, approving a budget of about N892 billion with a strong tilt towards capital expenditure and infrastructure development.
Addressing journalists shortly after the passage of the budget on Wednesday, the Chairman of the House Committee on Finance, Appropriation and State Economic Planning, Hon. Olasunkanmi Babalola, described the exercise as a historic moment for the state legislature.
Babalola, who represents Egbeda State Constituency and serves as the Deputy Leader of the House, said the budget was subjected to a detailed review across all Ministries, Departments and Agencies.
According to him, the Assembly effected key adjustments aimed at strengthening development spending, including the transfer of N2 billion from overhead costs to capital expenditure.
“The total size of the 2026 budget is about N892 billion. We carefully examined the allocations and moved funds from overheads to capital expenditure. Overhead was reduced from N389 billion to N387 billion, and the N2 billion difference was added to capital expenditure for infrastructure development,” he said.
He noted that capital expenditure now stands at over N504 billion, close to N505 billion, representing a significant portion of the total budget and reflecting the House’s resolve to prioritise development over recurrent spending.
“This clearly shows that the state is investing more in capital projects rather than consuming resources on overheads. The implication for citizens is simple. The people of Oyo State will continue to enjoy the dividends of democracy under this administration,” Babalola added.
The lawmaker assured residents that the House would intensify oversight functions to ensure strict compliance and value for money across all MDAs.
He also explained that the Assembly’s decision to pass the budget before the end of the year was deliberate.
“It has become our culture to pass the budget before the year runs out. The motivation is to allow the state to begin implementation from the first day of the new year without delays,” he said.
The passage of the reviewed budget follows the presentation of the 2026 Appropriation Bill by Governor Seyi Makinde, tagged the “Budget of Economic Expansion,” with an estimate of N891,985,074,480.79.
While presenting the proposal at the House of Assembly Complex, Agodi, Ibadan, the governor said the budget was designed to accelerate economic growth and position Oyo State for global market integration.
Makinde equally explained that the proposed capital expenditure was N502.8 billion, representing 56.7 per cent of the budget, while recurrent expenditure was pegged at N389.1 billion, or 43.3 per cent.
He disclosed that infrastructure would receive N210.02 billion, education N155.2 billion, health N70.8 billion and agriculture N19.9 billion, noting that the allocation to education exceeded UNESCO’s benchmark.
According to the governor, improved internally generated revenue, achieved through automation and efficiency without introducing new taxes, would help drive the budget.
He highlighted major projects underpinning the economic expansion drive, including the Oluyole Free Trade Zone, the Special Agro-Processing Zones, the dry port and logistics hub, the upgrade of the Samuel Ladoke Akintola Airport, and the 110-kilometre Rashidi Ladoja Circular Road.
Makinde also recalled the completion of key infrastructure such as the Ibadan Central Bus Terminals and Phase One of the Ibadan Airport upgrade, stressing that these investments were opening the state to trade, logistics, tourism and new investments.
In his remarks, Speaker of the House, Rt. Hon. Adebo Ogundoyin, commended the governor for what he described as visionary leadership and sound fiscal management.
He said the structure of the budget aligned with the state’s Medium-Term Expenditure Framework for 2026 to 2028 and demonstrated a commitment to inclusive growth and long-term sustainability.
Ogundoyin assured that the legislature would work closely with the executive to ensure judicious implementation of the budget and accountability in project execution.
The budget presentation and passage ceremony was attended by top government officials and dignitaries, including the Deputy Governor, Barr. Bayo Lawal; former Deputy Governors; past Speakers of the House; the Chief Judge of Oyo State, Justice Iyabo Yerima; members of the State Executive Council; lawmakers; traditional rulers; religious and labour leaders; and other stakeholders.
Governor Makinde also noted that Oyo State would mark its 50th anniversary in February 2026, describing it as an opportunity to celebrate the state’s history, creativity and identity while laying a foundation for future generations.