Aiyedatiwa presents N492.795bn 2026 budget proposal of economic consolidation

— Priorities infrastructure, capital projects

— Promises not to abandon ongoing projects across the state

By Dayo Johnson Akure

Governor Lucky Aiyedatiwa of Ondo state, has presented a N492,795,667,939.00 billion budget proposal for 2026 before the state lawmakers.

The budget tagged ” Budget of Economic Consolidation” according to the governor “is aptly justified as the natural progression from previous years’ activities and, therefore, reflects a deliberate shift from mere restoration to sustained consolidation of economic gains, ensuring that the progress recorded in 2025 matures into long-term prosperity, resilience and inclusive development for the people of Ondo State.

Aiyedatiwa said that the budget comprises recurrent expenditure of N210,804,346billion, representing 42.78percent of the total budget and capital expenditure of N281.991,321b representing 57.22 percent.

He added that “a recurrent to capital ratio of 42.78% to 57.22% is an eloquent testimony of our avowed commitment to transforming the socio-economic landscape of the State.

The governor said the budget proposal was guided by macroeconomic assumptions adopted from the Nigerian Governors’ Forum (NGF) Fiscal Strategy Paper, with priorities focused on infrastructure expansion, food security, human capital development and prudent fiscal management.

Governor Aiyedatiwa noted that the 2026 budget size of ₦492,795,667,939 was crafted to reflect current economic realities, particularly the volatility of federally shared revenues and disruptions caused by changes in VAT distribution.

He explained that on the expenditure side, the government deliberately designed a structure that encourages collaboration among all organs of government to drive “organic synergy” necessary for sustainable development.

He announced that the 2026 expenditure framework reflects a Capital–Recurrent ratio of 57.22% to 42.78%, a signal of the administration’s strong commitment to infrastructure and long-term investment.

According to him, the sectoral and IPSAS-compliant distributions clearly show projected spending priorities for social services, economic growth sectors, administration and law, and justice.

Aiyedatiwa said that the allocation pattern demonstrates a bold push for an infrastructure revolution, ensuring that all ongoing projects across the state receive adequate funding.

He lamented that “the global economic slowdown poses risks to the State’s revenue, which relies heavily on Federation Account allocations, Personal Income Tax, VAT and other shared revenues.

“The new VAT distribution formula – 50% shared equally, 20% by population and 30% by consumption – may reduce our revenue, given Ondo State’s civil service-driven and agrarian structure.

“Revenue could also be further constrained by exemptions granted to small businesses and low-income earners from Companies Income Tax and Personal Income Tax, which, though beneficial, may strain Internally Generated Revenue.

While saying that the state will continue the tradition of participatory budgeting, the governor, noted that the approach ” has broadened the input of communities, civil society groups, the private sector, youth bodies, artisans, farmers and other key stakeholders in shaping the 2026 Budget.

Aiyedatiwa said the 2026 budget will consolidate ongoing reforms through eight broad policy thrusts, including:sustained food security and agricultural transformation,human capital development, Infrastructure expansion improved Internally Generated Revenue (IGR) drive, Social inclusion and protection,Economic diversification, Strengthened community development, Prudent fiscal management

He stressed the administration’s determination to reduce waste, minimise borrowing, and deepen technology-driven revenue collection systems.

On the 2025 budget, Aiyedatiwa said that the “Mid-Year Appraisal and Third Quarter Budget Performance reports revealed that there were gaps between expected revenue and actual receipt as some of the anticipated donor inflows failed to materialise.

” Current data suggests that only about half of the expected funds will come in this year, posing a serious risk to water sector performance and the jobs and economic benefits the initial allocation was expected to generate.

” Consequently, a budget review became necessary to reduce unrealistic donor-funded projections, minimise reliance on such inflows and reallocate available State resources more equitably.

“The 2025 budget has, therefore, been revised downward from ₦698.659 billion to ₦489.998 billion, thereby ensuring fair allocation to all sectors.

In his address, the Speaker, Rt Hon Olamide Oladiji,lauded the governor for his transparency in the management of the state resources.

Oladiji assured the governor of the unalloyed support of the lawmakers adding the the budget would undergo a thorough scrutiny.

He also thanked the governor for his timely intervention during the recent impeachment saga in the Assembly.

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