Governor Seyi Makinde of Oyo State, on Wednesday, presented a budget estimate of N678,086,767,332.18 billion for the 2025 financial year before the State House of Assembly.
Makinde, who tagged the fiscal proposal as the Budget of Stabilisation, said the effort was to build on the 2024 budget of economic recovery.
The governor said the figure is about 35 per cent higher than the 2024 budget, stating that the plan was to spend a little over 50 per cent of the proposed budget on capital expenditure while about 49 per cent goes into recurrent expenditure
The capital expenditure stands at N343, 028, 948, 216.20 which is 50.59 per cent of the budget, the recurrent expenditure is put at N335,057,819,115.98, which is 49.41 per cent of the budget.
According to the estimate, the topmost four sectors include: infrastructure which gets the highest budgetary allocation (22.46 per cent ), education gets the second highest allocation (21.44 per cent ), health gets nine percent while agriculture gets three percent.
In the 2025 estimate, the budgetary allocations are: infrastructure takes N152,265,859,738.19 (22.46 per cent ), education allotted N145,354,783,399.80 (21.44 per cent ), health gets N59,411,385,714.68 (9 per cent ) and agriculture takes N18,760,243,348. 45 (3 per cent ) of the budget.
Justifying the high allocation to the infrastructure and education sectors, the governor recalled that the infrastructure deficit in the education sector and administration’s inability to meet up with her plans in the current year’s budget necessitated an increase in the allocation.
He added that the government also hopes to renovate a number of schools in the coming year.
He further explained that the budget for agriculture is to encourage investors in the sector, noting that the budget is to stimulate more activities in the agricultural sector but the major driver will be private investors.
Makinde said, “I am proud of our investment in our economy, education, healthcare and security sectors. We are proposing a budget of N678,086,767,332.18
“Of this, N343,028,948,216.20, which is 50.59 per cent is for capital expenditure, while N335,057,819,115.98, which is 49.41%, is for recurrent expenditure.
“Having looked at the data, including current inflation trends and projections for the year 2025 our budget of economic stabilisation is just about 35 per cent higher than our 2024 budget of economic recovery.
“We kept in mind the fact that we want an implementable budget. As of October, our last budget is at about 65 per cent implementation which is 5 per cent short of our projection. We believe that our revenue options will support over 70 per cent implementation in 2025.
“As stated, our plan is to spend a little over 50% of the proposed budget on capital expenditure while about 49 per cent goes into recurrent expenditure. I will do a slight breakdown of the budget. But when you are moving towards 70 per cent budget implementation, the implication is that if you have anything in the budget for your area, there are 70 per cent chances that it will be done.
“This is a departure from the past before this administration came in in 2019 when budget performance stood at about 30 to 35 per cent . So we’ve been able to actually bridge the trust gap between the government and the people. So infrastructure gets the highest share of the budget. We have earmarked N152,265,859,738.19, this is 22.46 per cent of the total budget to infrastructure.
“Education gets the second highest appropriation at N145,354,783,399.80. This is 21.44 per cent of the total budget and it is above the UNESCO recommended standard. As stated before, the infrastructure deficit in the education sector and our inability to meet up with our plans in the current year’s budget has necessitated an increase in the allocation. We hope to renovate a number of schools in the coming year.
“Health and agriculture at N59,411,385,714. 68 and N18,760,243,348. 45 are about 9% and 3 per cent of the budget, respectively. And let me also say that in the budget for agriculture, we are majorly encouraging investors in that sector. So our budget is to stimulate more activities in the agric sector but the major drivers will be private investors.”
He expressed optimism that the budget proposal will support the state roadmap for sustainable development from 2023 to 2027. He said the plan is to bring more smiles into the faces of investors, smallholder farmers, micro and small entrepreneurs, teachers and other public servants, parents, children, youths and all residents of the state.
“So, we strongly believe that this budget will live up to its name as the economic stabilisation that will support our state roadmap for sustainable development 2023 to 2027. Our plan is to bring more smiles into the faces of investors, smallholder farmers, micro and small entrepreneurs, our teachers and other public servants, our parents, our children, our youths and all residents of Oyo State.”
He solicited the support of the lawmakers to give the budget proposal an expeditious hearing so that the bill will be passed into law and continued the culture of running the budget from January 1st.
The Speaker, Rt. Hon Adebo Ogundoyin, said the progress made by Governor Seyi Makinde’s administration in rebuilding Oyo State is undeniable, and the successful implementation of the Roadmap for Sustainable Development 2023-2027 is a testament to his commitment.
He said the 2024 budget proposal achieved an impressive 64 per cent success rate, thanking the collaborative efforts of government branches and stakeholders.
He expressed optimism that building on the momentum, the 2025 budget proposal will surpass the performance of the current year, pledging the readiness of the lawmakers to immediately ensure swift passage of the 2025 Appropriation bill.
Adebo said “The 2025 budget proposal presents a promising outlook for Oyo State’s development, with infrastructure (22.46 per cent ) and education (21.4 per cent ) receiving the highest sectoral allocations. This is to stimulate economic growth, enhance competitiveness and increase productivity while also increasing the standard of education.
“The allocation also indicates a balanced approach, considering essential sectors like Health (8.76 per cent ), Agriculture (2.77 per cent ) and others (44.58 per cent ). Overall, the 2025 budget proposal sets a solid foundation for Oyo State’s progress and prosperity
“As Legislature, we are committed to working closely with Governor Seyi Makinde for the successful implementation of the 2025 budget. We pledge to conduct thorough oversight of all government arms in order to guarantee transparency, accountability and responsible allocation of resources.
“Let me assure that we will set the ball rolling immediately to ensure swift passage of the 2025 Appropriation bill. This, as usual, will translate to prompt implementation and execution of policies, as well as timely completion of all projects in the coming year.”