Ondo State Governor Lucky Orimisan Aiyedatiwa has submitted a ₦492.8 billion budget proposal for 2026, dubbed the “Budget of Economic Consolidation.” This marks a deliberate shift from the previous year’s recovery strategy to building long-term, sustainable economic gains.
In his address to the State House of Assembly, the governor emphasized that the budget was crafted in line with macroeconomic assumptions from the Nigerian Governors’ Forum Fiscal Strategy Paper. He highlighted priority areas like infrastructure expansion, food security, and human capital development.
A striking feature of the proposal is the expenditure mix: ₦281.99 billion (57.22 percent) is earmarked for capital spending, while ₦210.80 billion (42.78 percent) is allocated for recurrent costs. According to the governor, this “eloquent testimony of our avowed commitment to transforming the socio-economic landscape” reflects the administration’s determination to prioritize long-term investment over short-term expenses.
The budget rollout is being framed as a way to deepen cooperation across all branches of government. Aiyedatiwa said the structure encourages organic synergy to drive sustainable development. He reassured lawmakers and citizens alike that ongoing projects will not be abandoned: “no project in Ondo State will be left abandoned.”
Underpinning the fiscal plan are eight major policy thrusts:
1. Sustained food security and agricultural transformation
2. Human capital development
3. Infrastructure expansion
4. Improved internally generated revenue (IGR) drive
5. Social inclusion and protection
6. Economic diversification
7. Strengthened community development
8. Prudent fiscal management
To further strengthen its fiscal footing, the administration plans to minimize borrowing and reduce waste. There’s also a push to deepen technology-driven revenue collection systems.
Aiyedatiwa pointed out that the budget takes into account risks to state revenue, especially given the volatility of federally shared revenues and disruptions caused by changes in VAT distribution. He warned that the shift to a new VAT distribution formula and tax exemptions for small businesses could potentially squeeze the state’s internally generated revenue.
In addition, the governor underscored that the 2026 budget reflects broader participation in the decision-making process, noting that inputs came from communities, civil society groups, the private sector, youth bodies, artisans, and farmers.
By investing over 57 percent of its budget into capital projects, Ondo State aims to stimulate growth, create jobs, and generate long-term value. The plan also tackles fiscal risk: with shared revenue volatility and a new VAT formula, the government is boosting its internally generated revenue (IGR) base to preserve financial stability.
