Oyo State officials have revealed that ₦30 billion released by the Federal Government to help rebuild the area affected by the January 2024 Bodija explosion in Ibadan remains untouched nearly two years after the disaster. They say the remaining ₦20 billion of the ₦50 billion approved intervention fund has not been released, and that no clear explanation has been given for this delay.
In a statement issued on Thursday by Professor Musibau Babatunde, Commissioner for Budget and Economic Planning, and Prince Dotun Oyelade, Commissioner for Information, the state government said the full sum approved by the Federal Government was ₦50 billion but the balance of ₦20 billion is still being withheld by federal authorities. The ₦30 billion already provided by the Federal Government was placed in a dedicated account held at First Bank of Nigeria but has not been accessed or spent by the state.
The Bodija area of Ibadan was rocked by a devastating explosion on 16 January 2024, causing widespread destruction, loss of life and damage to homes and businesses. In the immediate aftermath, Oyo State authorities took action to support affected residents, deploying earth-moving equipment, medical teams and ambulances to the scene, treating the injured and covering the costs of their care. Displaced families were put up in hotels at the state’s expense, the statement said.
Shortly after the explosion, Governor Seyi Makinde wrote to President Bola Ahmed Tinubu to request federal financial support to help manage the consequences of the tragedy. In his letter dated 19 January 2024, the governor outlined the measures already taken by the state and highlighted additional needs requiring federal assistance. These included clearing rubble, testing building safety, demolishing unstable structures, compensating property owners, reconstructing the community, carrying out environmental assessments, improving emergency response infrastructure and providing logistical support.
Oyo State had estimated that addressing these needs would require about ₦100 billion. Instead, the Federal Government approved half of that amount, announcing an intervention fund of ₦50 billion to support reconstruction in Old Bodija and surrounding areas. A memo dated 29 August 2024 from the Accountant-General of the Federation to the Minister of Finance, released publicly by a federal government agent, outlined this approval.
Following approval, the Federal Government transferred ₦30 billion into a special Oyo State Government Infrastructure Support Account on 4 November 2024. However, as of 31 December 2025, the entire amount remained unspent in the account. The state government said it had deliberately refrained from using the funds, choosing to wait until the outstanding ₦20 billion was also released. There has been no official communication explaining why the balance is being withheld.
Officials said the decision not to use the ₦30 billion already provided was taken in light of recent public controversy surrounding the intervention fund. The statement described the situation as a “disgraceful drama” and suggested that the delay in releasing the remaining amount justified caution in how the money is handled.
Two years after the Bodija incident, the Federal Government has still not released the outstanding funds. The Oyo State Government emphasised that it remains committed to securing the full amount so that the damage caused by the explosion can be properly addressed. Oyo officials stressed that the scale of destruction was significant and that state resources alone were not enough to meet the full extent of the needs.
In the meantime, the state has already spent ₦24.6 billion from its own reserves on recovery efforts. This includes ₦20.141 billion used for reconstruction of critical infrastructure in Bodija and neighbouring communities, as well as ₦4.085 billion paid in compensation and support to victims of the disaster. All of these costs have been borne by the Oyo State Government.
Documents released by the federal government through its agent also show that a total of ₦915.5 billion was approved nationwide as intervention funds for various states across the country. Among those, some states received substantially larger sums, with one receiving ₦150 billion and another ₦50 billion. Despite suffering one of the most devastating incidents, Oyo State received one of the lowest allocations. Members of the public are able to consult the list of approvals for verification.
Officials clarified that special intervention funds are treated as capital grants. This means they must be included in the state’s budgetary process before they can be spent. They are reflected in financial statements and do not require special public announcements when they are received. This process, the government says, explains why some states receiving larger amounts have not publicised their federal intervention funds.
The statement underlined the state government’s commitment to transparency and accountability. It also urged the public to remain focused on the needs of affected communities rather than on political debates over the handling of the funds. Governor Makinde reiterated his dedication to serving the people of Oyo State with integrity and respect, saying the government will continue to engage with citizens openly as matters develop.
As Oyo residents begin 2026, the unresolved issue of federal funding for Bodija’s reconstruction remains a point of contention. With significant state spending already committed and critical federal funds yet to be released, the full recovery of the community depends in large part on the timely release and effective use of the intervention money promised after one of Ibadan’s worst recent disasters.
