…Prioritises infrastructure, revenue reforms and human capital development
By David Akinadewo-Adekahunsi
Ondo State Governor, Lucky Orimisan Aiyedatiwa, on Monday presented a total budget proposal of ₦492.796 billion for the 2026 fiscal year to the State House of Assembly.
The budget proposal indicated that capital expenditure will gulp 57.22 percent, while recurrent expenditure accounts for 42.78 percent.
Tagged ‘Budget of Economic Consolidation’, Aiyedatiwa said the proposal signals the administration’s shift from stabilisation to long-term growth, following a challenging 2025 fiscal cycle.
The Governor recalled that the 2025 budget, initially set at ₦698.659 billion, suffered significant revenue shortfalls after anticipated donor inflows failed to materialise.
He noted that: “This year’s budget performance formed a crucial backdrop to the 2026 estimates.
“According to the Mid-Year and Third Quarter Budget Performance Reports, only about half of donor funds were realised, putting pressure on key sectors, particularly water projects and job-creation interventions.
“Consequently, the government revised the budget downward to ₦489.998 billion to reflect realistic earnings and ensure equitable resource distribution.”
Despite the fiscal strain, Aiyedatiwa said the State achieved “remarkable progress through very prudent management of lean resources,” listing key gains across education, healthcare, infrastructure, agriculture, energy, ICT, social protection and environmental management.
He disclosed that 2,100 teachers were employed across primary and secondary schools, alongside recruitment in strategic public service sectors, including 500 health workers, 120 forest officers and 20 legal officers.
The Governor disclosed that the state paid ₦633.9 million in WAEC fees for 23,048 students and fully funded NABTEB registration for all public-school candidates.
Aiyedatiwa stated also that further ₦350 million in scholarships and bursaries reached over 11,000 tertiary students, while OSOPADEC disbursed ₦286.7 million to students from Ilaje and Ese-Odo.
He told the lawmakers that in 2025, 134 primary schools and 60 secondary schools were built or rehabilitated, while major upgrades were carried out in technical colleges.
The number one citizen of Ondo State revealed that, at Olusegun Agagu University of Science and Technology (OAUSTECH), academic expansion from three to seven faculties was supported by a new partnership with the Caribbean Maritime University of Jamaica, leading to the establishment of a School of Maritime Studies and Logistics in Igbokoda.
The Governor also highlighted investments in healthcare, including the expansion of the Orange Health Insurance Scheme, upgrade of the State Drug Store to Pharma-grade standard, deployment of Truscan devices to combat counterfeit medicines, and renovation of facilities through the World Bank IMPACT Project, which has already refurbished 102 primary healthcare centres at a cost exceeding ₦7.2 billion.
On infrastructure, Aiyedatiwa said over 60 kilometres of urban and intercity roads are under construction or rehabilitation, while 386 kilometres of rural roads were improved under RAAMP.
He pointed out that key dualisation projects, including the Oke-Aro–Idanre Road, Akungba–Ikare Road and the 27.5km Okitipupa–Igbokoda Road, have recorded major advancement.
Governor Aiyedatiwa also disclosed that Onyearugbulem–Shagari–Irese Flyover is nearing completion, while multi-billion-naira projects in Okitipupa, Ilaje, Irele and Ese-Odo LGAs are progressing with a combined value of ₦96.805 billion.
Other achievements highlighted by the governor include upgrades to multiple water schemes, progress on the Owena Multipurpose Dam, expansion of off-grid solar mini-grids in 30 communities, revival of the Omotosho 2×15MW power plant, and the rollout of subsidised O’Datiwa prepaid meters.
He said the State Electricity Bureau also issued new generation and distribution licences to private developers to scale energy access.
The Governor said social protection interventions under the OD-CARES programme now support 10,550 households with bimonthly cash transfers of ₦20,000, while nearly 20,000 residents earn monthly stipends from public-works programmes. Grants worth up to ₦600,000 have also been awarded to 1,863 small businesses.
He said for retirees, the State paid ₦2.396 billion in gratuities for 2016–2017, in addition to earlier payments to local government and primary school pensioners.
“A monthly gratuity provision of ₦180 million is now in place. The School Shuttle Scheme, suspended since 2020, was reinstated with an allocation of ₦701 million for both road and riverine transport, he stated.
Presenting the 2026 outlook, Aiyedatiwa warned that global economic headwinds, Nigeria’s new VAT sharing formula and expanded tax exemptions for small businesses may put pressure on the State’s revenues.
He added that nevertheless, the administration is adopting a participatory budgeting model and focusing on eight strategic policy thrusts: food security, human capital development, infrastructure expansion, improved IGR mobilisation, inclusive community development, social protection, economic diversification and prudent fiscal management.
The Governor emphasised that the proposed ₦492.8 billion budget is designed to consolidate gains from the 2025 Budget of Recovery, deepen reforms, strengthen revenue structures and accelerate growth-driven investments.
He assured lawmakers that no ongoing project would be abandoned, as the budget prioritises infrastructure and service-delivery continuity.
Aiyedatiwa expressed profound appreciation to the House of Assembly for what he described as a harmonious and productive relationship, praised security agencies for maintaining peace, and acknowledged traditional rulers, civil society groups, student bodies, labour unions, development partners and the media for their support throughout the budget preparation process.
He urged the Assembly to give the 2026 Appropriation Bill “the same careful consideration” granted previous budgets, expressing optimism that the coming year would deliver “significant progress, prosperity and well-being” to the people of Ondo State.
In his remarks, the Speaker of the House, Rt. Hon. Olamide Oladiji, assured the governor that lawmakers will work on the document speedily, and ensure thorough scrutiny of the budget.
He, however, appreciated governor Aiyedatiwa for the fatherly role he played in resolving the recent misunderstanding among members of the Assembly.
The budget presentation was witnessed by the Deputy Governor, Dr Olayide Adelami, members of the state executive council, majority of the 26 members of the Ondo State House of Assembly, former lawmakers, and some political office holders.
