Ondo State, often referred to as the “Sunshine State,” is one of Nigeria’s most resource-rich and agriculturally vibrant states, strategically located in the country’s South-West region. With a thriving economy based on oil, cocoa, timber, and agriculture, the state has consistently shown a strong commitment to governance and development. In 2024, Ondo State took a bold step forward by approving a forward-looking budget designed to strengthen infrastructure, drive social welfare, and stimulate internally generated revenue.
This article provides an in-depth breakdown of everything you need to know about state allocation for Ondo State in 2024—highlighting revenue sources, budget allocations, economic strategies, sector-specific projects, and the government’s plan to ensure fiscal discipline and sustainable development.
The 2024 Budget: A Strategic Move Toward Sustainability
In December 2023, Governor Lucky Aiyedatiwa signed the 2024 Appropriation Bill into law. The bill, originally presented by the late Governor Rotimi Akeredolu, was aptly titled the “Budget of Shared Prosperity.” This budget sets a new direction for Ondo State’s financial planning, projecting a total expenditure of ₦395.26 billion.
Breakdown of the Budget
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Capital Expenditure: ₦222.26 billion (56.23%)
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Recurrent Expenditure: ₦172.997 billion (43.77%)
The allocation prioritizes capital development over recurrent expenses—a significant shift toward creating long-term infrastructure that will sustain future generations. This budget is a continuation of the vision set in previous years and reflects the administration’s focus on executing transformative projects while maintaining prudent fiscal management.
Sources of Revenue
Ondo State’s 2024 budget will be funded through various channels, combining federal allocations, internally generated revenue (IGR), grants, and loans.
1. Statutory Federal Allocation
A major part of the revenue comes from the Federation Account Allocation Committee (FAAC), which includes earnings from oil revenue, Value Added Tax (VAT), and other national income sources. Due to its oil-producing status, Ondo State receives 13% derivation revenue—an additional financial benefit from its crude oil production.
2. Internally Generated Revenue (IGR)
The Ondo State Internal Revenue Service (ODIRS) has made remarkable progress in growing the state’s IGR. In 2023, Ondo’s IGR rose to ₦40 billion, a 300% increase from previous years when the IGR was around ₦10 billion. The state now aims to increase monthly IGR further by digitizing tax collection, expanding the tax net, and improving compliance among residents and businesses.
3. Loans and Grants
To finance the budget deficit of ₦79 billion, the state plans to raise:
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₦22.4 billion from domestic borrowing
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₦56.35 billion from foreign sources
Importantly, all borrowed funds will be tied to capital projects, particularly in health, education, infrastructure, and agriculture—sectors that promise to deliver high economic returns and job opportunities.
Sectoral Priorities in the 2024 Budget
A closer look at the budget reveals strategic investments across critical sectors.
1. Education
Education receives a significant allocation to improve the quality of learning at all levels. Key interventions include:
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Payment of WAEC and NECO fees for eligible students
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Scholarships and bursaries for tertiary students
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Upgrading of public school infrastructure
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Recruitment and training of teachers
The aim is to make quality education accessible and inclusive for all Ondo residents.
2. Healthcare
To improve health outcomes, the government has prioritized:
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Rehabilitation and equipping of general hospitals
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Expansion of primary healthcare centers in rural communities
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Training of medical personnel
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Introduction of e-health platforms for better service delivery
3. Agriculture and Rural Development
Agriculture is being repositioned as a major economic driver through:
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The Red Gold Project, which has distributed over 105,000 palm seedlings and developed over 80,000 hectares of arable land.
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The distribution of two million cocoa seedlings to boost Ondo’s position as Nigeria’s largest cocoa producer.
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Provision of farm equipment, fertilizers, and training to rural farmers
These efforts aim to reduce poverty, enhance food security, and create agro-processing opportunities.
4. Infrastructure and Public Works
Infrastructure is one of the largest recipients of capital expenditure. Projects underway include:
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Road construction and rehabilitation across local government areas
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Drainage systems and erosion control
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Water supply schemes, including agreements with international partners to upgrade the Owena Multi-Purpose Dam
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Urban renewal projects in Akure and other cities
5. Water Resources and Sanitation
The government is investing in:
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Rural water supply through boreholes and hand pumps
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Urban water systems
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Household and community-level sanitation to reduce disease outbreaks
Fiscal Sustainability and Debt Management
A defining feature of the 2024 budget is the emphasis on fiscal discipline and accountability. In compliance with the Ondo State Fiscal Responsibility Law (2017), the government continues to implement best practices in public finance, including:
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Quarterly publication of Budget Implementation Reports for public scrutiny
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Ensuring all loans are tied to capital assets and not recurrent expenditure
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Avoiding accumulation of non-transparent debt
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Continuous review of recurrent spending to eliminate waste
These practices are intended to protect future generations from undue financial burdens while maximizing value from current public investments.
Boosting Internally Generated Revenue (IGR)
ODIRS is at the forefront of reforms designed to increase revenue. Strategies include:
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Digital tax collection platforms
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Integration of land use charges, vehicle licensing, and business taxes
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Improved taxpayer education and incentives for compliance
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Engaging the informal sector through market unions and community groups
The government hopes to make the state financially self-sufficient and reduce overdependence on federal allocations.
Transparency and Citizens’ Participation
In a move to deepen democracy, Ondo State is promoting citizens’ participation in budgeting and monitoring. This includes:
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Publishing a simplified Citizens’ Budget for easy public understanding
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Organizing town hall meetings before budget formulation
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Encouraging civil society oversight on project implementation
Transparency initiatives like these help reduce corruption, build public trust, and ensure that funds are spent on real community needs.
Challenges and Opportunities
Key Challenges:
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Overdependence on oil and federal allocation
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Infrastructure gaps in rural communities
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Low tax compliance in some informal sectors
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Delays in project implementation due to bureaucracy
Opportunities:
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Ondo's coastal location presents major potential for seaport development and tourism
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Abundant mineral resources such as bitumen, limestone, and granite can attract investors
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Agricultural expansion can boost exports and agro-industrialization
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Strategic partnerships with development partners and the private sector
Conclusion
The 2024 Ondo State budget demonstrates a clear vision: to build a resilient, prosperous, and inclusive economy. By focusing on high-impact sectors like infrastructure, education, health, and agriculture, and by driving reforms in revenue generation and transparency, the state is positioning itself for long-term growth.
Though challenges remain, the groundwork is being laid for a stronger, more sustainable future. As the “Sunshine State” continues to shine its light on progressive governance, the citizens of Ondo can look forward to a brighter, more prosperous tomorrow—rooted in shared prosperity and fiscal responsibility.
