Oyo State, located in the southwest geopolitical zone of Nigeria, has consistently distinguished itself through progressive governance and strategic economic planning. For the 2025 fiscal year, Governor Seyi Makinde’s administration unveiled a bold and inclusive budget tagged “Budget of Economic Stabilisation.” With a total value of ₦684.15 billion, this budget not only marks a significant increase from the previous fiscal year but also signals the government’s strong commitment to economic resilience, infrastructure renewal, and people-focused development.
In this comprehensive blog post, we break down everything you need to know about Oyo State’s 2025 state allocation—from sectoral breakdowns and capital-recurrent ratios to revenue strategies and project implementation.
Overview of the Oyo State 2025 Budget
The 2025 budget aims to address economic shocks, enhance the state’s infrastructure, expand access to social services, and ultimately stabilize Oyo’s economic environment. Governor Seyi Makinde emphasized that this budget will focus on long-term growth, job creation, and service delivery across all sectors.
Key Figures:
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Total Budget: ₦684.15 billion
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Capital Expenditure: ₦344.96 billion (50.4%)
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Recurrent Expenditure: ₦339.19 billion (49.6%)
This almost equal split between capital and recurrent spending reflects a balanced approach—ensuring operational efficiency while investing substantially in development projects.
Major Sectoral Allocations
Let’s take a deeper look at how this ₦684.15 billion budget will be allocated across key sectors of the Oyo State economy:
1. Infrastructure – ₦152.27 Billion (22.46%)
Infrastructure receives the lion’s share of the allocation. The government understands that good roads, bridges, and urban facilities are the backbone of a productive economy.
Flagship Projects Include:
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Completion of the Ido-Eruwa Road, crucial for agricultural logistics.
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Ongoing construction and rehabilitation of rural feeder roads to connect remote communities.
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Drainage projects and urban renewal programs to combat flooding.
This heavy infrastructure investment is expected to stimulate economic activity, attract investors, and create thousands of direct and indirect jobs.
2. Education – ₦145.35 Billion (21.44%)
Education remains one of the administration’s top priorities. With the second-highest allocation, this sector is poised for transformation.
Key Targets:
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Rehabilitation of over 100 dilapidated primary and secondary schools.
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Provision of teaching materials and digital learning tools.
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Recruitment and training of qualified teachers.
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Expansion of Oyo State College of Education and Polytechnic facilities.
Governor Makinde has repeatedly emphasized the role of education in breaking the cycle of poverty and empowering youths for the 21st-century economy.
3. Healthcare – ₦59.41 Billion (8.68%)
Oyo State is making deliberate efforts to improve its healthcare infrastructure and service delivery system.
Health Budget Highlights:
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Upgrading primary healthcare centers in all 351 wards.
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Procurement of modern medical equipment for state hospitals.
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Construction of new diagnostic centers and a mother-and-child facility in Ibadan.
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Increased funding for the Oyo State Health Insurance Scheme (OYSHIA).
This focus on healthcare aims to reduce maternal and child mortality while improving life expectancy across the state.
4. Agriculture – ₦18.76 Billion (2.74%)
Agriculture remains a critical sector for food security and rural development. Though relatively smaller in terms of allocation, agriculture in Oyo State is highly prioritized in terms of targeted spending.
Key Agricultural Programs:
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Distribution of subsidized inputs to over 10,000 farmers.
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Construction of rural roads to aid farm-to-market movement.
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Partnerships with agribusiness investors under the Oyo State Agribusiness Development Agency (OYSADA).
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Promotion of mechanized farming and agro-processing hubs.
The ultimate goal is to make Oyo a major player in Nigeria’s agricultural export value chain.
5. Economic Empowerment and Social Protection – ₦22.5 Billion
This component of the budget aims to uplift vulnerable populations through:
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Youth empowerment programs.
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Women entrepreneurship grants.
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Conditional cash transfers for indigent households.
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Skills acquisition centers across all LGAs.
The state’s social welfare plan is aligned with the United Nations’ Sustainable Development Goals (SDGs), especially goals 1 and 10—no poverty and reduced inequalities.
Revenue Strategy: How Oyo Plans to Fund the Budget
Oyo State plans to finance this ambitious budget through a mix of internally generated revenue (IGR), federal allocations, grants, and loans.
Revenue Components:
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Internally Generated Revenue (IGR): ₦132.36 billion
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Statutory Federal Allocation (FAAC): ₦126.87 billion
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Capital Receipts and Aids: ₦160 billion
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Other Revenues (including VAT): ₦264.92 billion
The state is aggressively improving its IGR through the Oyo State Internal Revenue Service (OYSIRS) via automated tax collection, wider tax nets, and curbing revenue leakages.
To avoid excessive debt, Governor Makinde confirmed that borrowing will be strategic, tied to infrastructure and revenue-generating projects only.
Budget Implementation: Transparency, Accountability, and Monitoring
The success of any budget depends not just on how it is structured but how well it is executed. Oyo State has adopted various tools and strategies to ensure optimal implementation.
Key Monitoring Tools Include:
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Monthly and quarterly performance reviews by the Ministry of Budget and Economic Planning.
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Real-time project tracking dashboards available to the public.
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Open town hall meetings for citizen feedback.
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Collaboration with civil society organizations and development partners.
Governor Makinde has set an implementation benchmark of at least 80%, emphasizing value-for-money and measurable impact on residents.
Impact of the Budget on Citizens
If well implemented, the 2025 budget is expected to:
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Improve road infrastructure, making transportation faster and safer.
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Enhance learning conditions for students and teachers.
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Improve health outcomes through better hospitals and insurance access.
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Boost local food production and ensure affordable prices.
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Reduce unemployment by funding small businesses and vocational skills.
Residents of Oyo State should expect a more vibrant economy and responsive government services throughout 2025.
Final Thoughts
Oyo State’s 2025 budget is bold, strategic, and responsive. With a total value of ₦684.15 billion, it balances infrastructural development with social investment—addressing both immediate needs and long-term goals. The state's decision to dedicate over 50% to capital expenditure shows its resolve to build sustainable assets that will serve generations.
Governor Makinde’s administration has built a reputation for delivering people-centered governance. This budget reinforces that commitment. With adequate funding, stakeholder engagement, and transparent monitoring, Oyo State is well-positioned to achieve significant milestones in 2025.
