Ondo State Governor Lucky Aiyedatiwa has presented a ₦492.8 billion budget proposal for 2026 to the State House of Assembly, unveiling what he described as a “Budget of Economic Consolidation.” The governor said the proposal is designed to strengthen gains made in previous years while pushing the state into a new phase of long-term growth and stability.
During the presentation, Aiyedatiwa explained that the budget aims to move Ondo State from basic economic recovery to solid consolidation, ensuring that key achievements recorded in 2025 evolve into durable prosperity and broader development.
According to the breakdown, the 2026 budget comprises ₦210.8 billion in recurrent expenditure, representing 42.78% of the total, and ₦281.99 billion in capital expenditure, accounting for 57.22%. He noted that the higher capital allocation mirrors his administration’s determination to invest heavily in infrastructure, growth sectors, and long-term development.
Aiyedatiwa said the proposal was shaped using macroeconomic indicators from the Nigerian Governors’ Forum Fiscal Strategy Paper, with priorities built around infrastructure expansion, food security, human capital development, and prudent fiscal management. He added that the budget size reflects the volatile national revenue climate, particularly changes in the distribution formula for Value Added Tax (VAT) and instability in federally shared revenues.
The governor pointed out that the new VAT formula—50% shared equally, 20% by population, and 30% by consumption—could negatively affect Ondo State, given its largely civil service–driven economy and agrarian communities. He also highlighted the impact of tax exemptions for low-income earners and small businesses, which, while beneficial, may reduce the state’s Internally Generated Revenue (IGR).
He explained that the government deliberately adopted an expenditure pattern that encourages full collaboration across different branches of government, promoting what he called “organic synergy” to drive sustainable development. The sectoral allocations, he added, rest on IPSAS-compliant structures covering social services, law and justice, administration, and economic growth sectors.
Aiyedatiwa assured residents that no ongoing project will be abandoned, stressing that the 2026 budget is crafted to give adequate attention to all major infrastructure works across the state. He said the allocation pattern signals an aggressive push for an “infrastructure revolution” needed to enhance the state’s competitiveness and long-term economic health.
The governor also expressed concerns about global economic pressures that could weaken state revenue. He reaffirmed his commitment to participatory budgeting, saying that inputs from communities, civil society, private sector actors, farmers, artisans, and youth groups played a major role in shaping the 2026 proposal.
He emphasized eight key policy areas that the 2026 budget will consolidate: food security, agricultural transformation, human capital development, infrastructure expansion, improved IGR systems, social inclusion, economic diversification, strengthened community development, and prudent fiscal management. He added that the state will reduce waste, cut borrowing, and expand technology-driven revenue collection.
Aiyedatiwa further disclosed that the state’s 2025 budget had been reviewed downward due to donor funds not materializing as expected. He stated that only about half of anticipated donor inflows would arrive this year, especially affecting the water sector. As a result, the ₦698.7 billion 2025 budget was revised to ₦489.9 billion to ensure fair distribution of available resources.
Responding, Speaker of the House, Rt. Hon. Olamide Oladiji, praised the governor for his transparency in managing state finances. He pledged the Assembly’s full cooperation and assured that the budget would be thoroughly examined. Oladiji also thanked the governor for his intervention during the Assembly’s recent impeachment crisis, noting that his involvement helped restore stability.