The Governor of Ondo State, Lucky Aiyedatiwa, on Monday presented ₦492.8 billion budget for the 2026 fiscal year to the State House of Assembly.
Aiyedatiwa described the budget as a realistic, reform-driven financial plan aim at consolidating the economic gains recorded of 2025.
Aiyedatiwa disclosed that the sum of N210 billion was for recurrent expenditure, while N281 billion was earmarked for capital expenditure.
According to him, the budget estimate christened “Budget of Economic Consolidation,” is guided by macroeconomic assumptions adopted from the Nigerian Governors’ Forum (NGF) Fiscal Strategy Paper.
He explained that the budget’s priorities focus on infrastructure expansion, food security, human capital development and prudent fiscal management.
Aiyedatiwa said: “Today, we are here before this honourable House by the grace of God and the uncommon goodwill of the people of our Sunshine State, to present the 2026 Budget proposals for Ondo State tagged “Budget of Economic Consolidation”.
“Mr. Speaker, Honourable Members, the 2025 Budget was christened the Budget of Recovery to focus on stabilising critical sectors, restoring essential services and reviving public confidence after a period of fiscal strain.
“Having laid this solid foundation and achieved measurable gains, particularly in infrastructure rehabilitation, service delivery and public financial management, the State is now positioned to deepen these achievements by strengthening revenue structures, accelerating growth-driven investments and institutionalising reforms.
“The title of 2026 Budget of Economic Consolidation is aptly justified as the natural progression from previous years’ activities and, therefore, reflects a deliberate shift from mere restoration to sustained consolidation of economic gains, ensuring that the progress recorded in 2025 matures into long-term prosperity, resilience and inclusive development for the people of Ondo State.
“Mr. Speaker, Honourable Members, the global economic slowdown poses risks to the State’s revenue, which relies heavily on Federation Account allocations, Personal Income Tax, VAT and other shared revenues.
“The new VAT distribution formula – 50% shared equally, 20% by population and 30% by consumption – may reduce our revenue, given Ondo State’s civil service-driven and agrarian structure. Revenue could also be further constrained by exemptions granted to small businesses and low-income earners from Companies Income Tax and Personal Income Tax, which, though beneficial, may strain Internally Generated Revenue.
“Putting these key parameters and assumptions into consideration, a total budget of N492,795,667,939.00 billion has been proposed for 2026 Fiscal Year as follows:
“2026 Expenditure Projection: On the expenditure side, Mr Speaker, we have taken note of the fact that development rarely occur in silos. We have, therefore, adopted an integrated approach such that each organ of government would complement others to stimulate the organic synergy required to catalyse our developmental resurgence.
The 2026 Expenditure Allocation is as follows:
“Mr. Speaker, the above allocation; which projects a recurrent to capital ratio of 42.78% to 57.22% is an eloquent testimony of our avowed commitment to transforming the socio-economic landscape of the State.”
