Makinde presents N1.1trn final budget, allocates N670bn to capital projects

Oyo State Governor, Seyi Makinde, on Tuesday presented a proposed budget of N1.12 trillion for the 2027 fiscal year, with capital expenditure accounting for 60.07 per cent of the total spending plan.

The proposal, tagged the “Budget of Sustained Progress”, allocates N670.03 billion to capital projects and N445.31 billion to recurrent expenditure, representing 39.93 per cent.

Presenting the appropriation bill to the Oyo State House of Assembly in Ibadan, Mr Makinde said the proposed spending plan reflected consultations with residents and authorities across the state’s seven geopolitical zones.

“We heard their priorities, their concerns, and their expectations. The budget before you reflects those conversations and our responsibility to plan for the continued development of our states,” Mr Makinde said.

“Approximately 60 naira out of every 100 naira proposed in this budget is directed towards capital investment,” the governor told the lawmakers, adding that the remaining allocation would support the personnel and resources required to sustain public services.

Budget sectoral breakdown

In the Oyo proposed budget presented, infrastructure received the largest sectoral allocation of N236.15 billion, representing 21.17 per cent of the total budget.

Education got 17.08 per cent, amounting to N190.53 billion, while healthcare received N93.01 billion, representing 8.34 per cent of the total budget.

The energy and mineral resources sector was allocated N69.37 billion, representing 6.22 per cent, while agriculture received the least cut of the budget, getting 2.14 per cent amounting to N23.85 billion of the total budget.

The 2027 proposed budget is about 25 per cent higher than the initial N891.99 billion budget presented by the governor for 2026, tagged the “Budget of Economic Expansion”. However, the Oyo State House of Assembly subsequently approved an additional N210 billion supplementary budget in September, raising the state’s total 2026 budgetary provision to N1.102 trillion.

Compared with the revised 2026 budget, the proposed N1.115 trillion for 2027 represents an increase of approximately 1.2 per cent.

Capital expenditure increased from N502.85 billion in the 2026 proposal to N670.03 billion in the new estimates, representing an increase of about 33.2 per cent. Recurrent expenditure also rose from N389.14 billion to N445.31 billion, an increase of about 14.4 per cent.

Although infrastructure retained the largest allocation, its share of the total budget declined from 23.55 per cent in 2026 to 21.17 per cent in the 2027 proposal.

The allocation for education increased from N155.21 billion to N190.53 billion, while healthcare spending rose from N70.85 billion to N93.01 billion in the 2027 proposed budget.

Successor will implement part of budget – Makinde

The proposed budget is the final annual appropriation bill of Mr Makinde’s administration, which is due to leave office on 29 May 2027 after completing two terms.

Acknowledging the transition, the governor, who is contesting the upcoming 2027 presidential election on the platform of the Allied Peoples Movement (APM), said his administration would implement only part of the budget before handing over to the next government, which would be responsible for the remainder of the 2027 fiscal year.

“As I said, this will be our final budget presentation, but the budget itself covers a full year. So, the administration will implement part of it before handing it over on 29 May 2027. The responsibility for the remainder will pass to the next administration,” he said.

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He said the transition made it important for his government to leave clear records, documented commitments and institutions capable of sustaining public service delivery.

Mr Makinde urged the state lawmakers to ensure that any changes they made to the proposed estimates reflected the interests of residents.

“You are the authority to approve this budget, and you must know that this came from the people. So, if you are removing or you are adding, have in mind that the destinies of our people are involved,” he said.

The governor also urged residents to consider continuity in the 2027 elections, arguing that the next administration would have to decide whether to sustain projects and reforms initiated by his government.

He said his administration would continue working until its final day in office and expressed hope that residents would be able to point to completed projects, stronger public institutions and expanded opportunities after the transition.