Osun State, located in the South-Western part of Nigeria, has taken a bold and strategic step into the fiscal year 2025 with the introduction of a comprehensive and ambitious budget. Tagged the "Budget of Sustainable Growth and Transformation," this financial blueprint underscores the state government’s commitment to stimulating economic development, investing in critical sectors, and enhancing the welfare of its citizens.
With the approval of a ₦427.74 billion budget by the Osun State House of Assembly—up from the ₦273 billion budgeted in the previous year—the state has significantly increased its financial commitment to growth and transformation. This upward revision by ₦56 billion from the initially proposed ₦390 billion further emphasizes the state's evolving priorities and its readiness to invest heavily in areas that matter most to its people.
Overview of Osun State’s 2025 Budget
The 2025 budget is structured into two key components: capital expenditure and recurrent expenditure. This approach allows the state to balance long-term investments with day-to-day governance and service delivery.
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Capital Expenditure – ₦191.55 billion (44.78%)
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Recurrent Expenditure – ₦236.20 billion (55.22%)
This distribution clearly shows that while the government is investing heavily in ongoing operations, it is also making significant capital investments in areas like infrastructure, education, and healthcare, which are critical to sustainable growth.
Revenue Projections: Where the Money Is Coming From
To fund this expansive budget, Osun State has outlined a multi-pronged revenue approach. These sources include:
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Statutory Revenue from the Federation Account Allocation Committee (FAAC): ₦251.67 billion
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Internally Generated Revenue (IGR): ₦109.87 billion
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Capital Receipts: ₦36.20 billion
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Opening Balance from the Previous Fiscal Year: ₦30 billion
These figures are based on macroeconomic assumptions such as national inflation trends, exchange rates, GDP growth, oil prices, and internally assessed revenue growth metrics. The emphasis on increasing internally generated revenue indicates Osun’s desire to reduce over-reliance on federal allocations and improve financial self-sufficiency.
Sectoral Allocations and Government Priorities
Governor Ademola Adeleke, who signed the budget into law, emphasized that the 2025 fiscal plan is designed not only to sustain current development but also to accelerate new opportunities in key sectors.
1. Education – ₦27.5 Billion
One of the highest allocations went to the education sector, which received ₦27.5 billion. This allocation reflects the government’s commitment to improving learning outcomes and access to quality education across the state.
Projects under this sector include:
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Construction and renovation of public schools
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Supply of teaching and learning materials
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Recruitment and training of qualified teachers
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Expansion of technical and vocational education programs
Education is viewed as a cornerstone for long-term development, and this funding ensures more inclusive access and enhanced performance across public institutions.
2. Healthcare – ₦31.24 Billion
Healthcare is another vital area of investment in the 2025 budget. With an allocation of ₦31.24 billion, the state aims to overhaul its health system and improve the delivery of healthcare services.
Key focus areas include:
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Upgrade of primary and secondary healthcare facilities
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Provision of essential drugs and medical equipment
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Expansion of health insurance schemes for residents
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Recruitment of medical professionals and support staff
Improved health outcomes not only uplift individual welfare but also contribute to workforce productivity and economic resilience.
3. Infrastructure Development – ₦106 Billion
A large share of the capital expenditure is going toward infrastructure development, which was allocated a whopping ₦106 billion. This demonstrates the state's focus on building durable public works that can catalyze economic growth.
Projects in this category include:
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Road construction and rehabilitation (urban and rural)
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Expansion of electricity and water supply systems
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Modernization of public buildings and facilities
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Urban renewal projects, including transportation hubs and drainage systems
The government aims to boost internal mobility and attract investments through improved physical infrastructure.
4. Agriculture – ₦7.16 Billion
Agriculture remains a pivotal part of Osun’s economy. With ₦7.16 billion set aside for the sector, the government intends to improve food production and enhance the agribusiness value chain.
Plans include:
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Providing improved seedlings, fertilizers, and machinery to farmers
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Supporting agricultural extension services
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Creating access to microfinance for agribusiness startups
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Investing in irrigation and storage facilities
The goal is to achieve food security, create employment, and diversify the state's economy from heavy dependence on oil revenues.
5. Youth Development and Empowerment
Governor Adeleke’s administration has also prioritized youth development, especially through entrepreneurship and vocational training programs. While the exact figure wasn’t isolated in the budget breakdown, the administration made it clear that youth empowerment is a cross-cutting focus in various sectors.
Key projects include:
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Skills acquisition centers
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Digital training programs
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Support for creative industries (music, arts, entertainment)
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Youth-in-agriculture schemes
Economic Impact and Citizen Participation
Beyond just the numbers, the 2025 budget also emphasizes accountability and transparency. The administration has committed to:
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Implementing a public expenditure tracking system
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Encouraging citizens’ participation in town halls and public hearings
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Publishing budget performance reports regularly
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Ensuring open contracting for government projects
By involving the people in budgeting and monitoring, Osun State is fostering a participatory democracy and enhancing trust between the government and its citizens.
Moreover, this budget is projected to create thousands of jobs, directly and indirectly, through government projects, while stimulating small and medium-sized enterprises (SMEs) by improving access to finance and infrastructure.
Implementation Strategy
Implementation will be handled by the Ministry of Economic Planning, Budget, and Development, which is also responsible for setting measurable targets for all projects. In addition, the administration plans to collaborate with development partners and private sector stakeholders to ensure that projects are delivered on time and within budget.
Performance-based budgeting and result-oriented project tracking systems will be used to measure the outcomes and make adjustments where necessary.
Conclusion
Osun State’s 2025 allocation reflects a forward-thinking, pro-development agenda that is people-centered and strategically designed to stimulate inclusive economic growth. With a well-balanced approach to capital and recurrent expenditures, the state is laying a foundation for long-term prosperity while addressing the immediate needs of its population.
From boosting education and healthcare to building roads and empowering youth, the 2025 budget is more than just figures—it is a clear statement of intent to transform Osun into a vibrant, self-sufficient, and citizen-focused state.
Governor Ademola Adeleke and his administration are taking bold steps to ensure that every naira spent is directed toward impactful projects. With sustained political will, transparency, and citizen participation, Osun State’s 2025 budget could become a model for subnational development in Nigeria.
