Oyo State: Governor Makinde Proposes N1.12tn Budget 2027

• Governor Seyi Makinde proposed a N1.12 trillion appropriation bill for Oyo State's 2027 fiscal year.
• The budget allocates N670.3 billion (60%) to capital expenditure, with public infrastructure receiving the largest share at N236.15 billion.
• Oyo State's Internally Generated Revenue has significantly increased from N26.95 billion in 2019 to N103.25 billion in 2026.
• The State House of Assembly has passed 41 bills since June 2023 and is considering key proposals like the Consumer Protection Agency Bill and Single-Use Plastics Prohibition Bill. The Presumptive Tax Bill was passed into law on September 12, 2024.
• Oyo State became the first in Nigeria to establish a Post-Legislative Scrutiny Unit in January 2025.

The proposed N1.12 trillion budget for 2027, coupled with the active legislative agenda, signals a clear direction for Oyo State's future development.

Oyo State Governor Seyi Makinde recently presented a comprehensive N1.12 trillion appropriation bill for the 2027 fiscal year to the state House of Assembly in Ibadan. Titled "Sustained Progress," the proposed budget, specifically amounting to N1,115,341,378,359.90, outlines a significant commitment to capital development, allocating approximately 60 percent, or N670.3 billion, to capital expenditure. Recurrent expenditure is projected at N445.3 billion, constituting the remaining 40 percent of the total estimates.

The governor emphasized that the substantial allocation is designed to build upon his administration's existing legacy projects and to prioritize the state's infrastructural advancement. Public infrastructure is slated to receive the largest share, with N236.15 billion earmarked for this critical sector. Following closely, education is allocated N190.6 billion, while the health sector is set to receive N93.01 billion, reflecting key areas of focus for the upcoming fiscal period.

Governor Makinde highlighted his administration's success in significantly boosting the state's Internally Generated Revenue (IGR), which has surged from N26.95 billion in 2019 to N103.25 billion by 2026. This substantial increase underscores the state's improved financial capacity. The governor also pointed to educational achievements, noting that over 65,000 out-of-school children have been successfully reintegrated into the classroom under his leadership.

In advocating for effective budget implementation, the governor stressed the necessity of prudent financial management to sustain the reforms and infrastructural developments initiated by his government. He also defended the administration's tractorisation policy and the decision to privatize tractor services, asserting these measures are crucial for enhancing agricultural productivity across Oyo State. Addressing recent departures of political appointees, Governor Makinde stated he acknowledged those who had left but maintained that their decisions held no significant impact on his administration's operations.

Responding to the governor's presentation, Speaker of the Oyo State House of Assembly, Adebo Ogundoyin, acknowledged the governor's presence as a testament to his administration's respect for constitutional democracy and the harmonious working relationship between the executive and legislative branches. Ogundoyin underscored the occasion as an opportunity to solidify achievements from the past seven and a half years, continue ongoing developmental programs, and strengthen the foundation for sustainable growth and prosperity within the state.

The Speaker detailed the legislative body's robust activity since June 2023, reporting the passage of 41 bills into law, the processing of 146 committee reports, 184 motions, and the adoption of over 1,500 resolutions. He specifically drew attention to several significant legislative proposals that have undergone public engagement, including the Oyo State Real Properties Protection Bill, the Consumer Protection Agency Bill, the Oyo State Roads Fund Bill, and the Single-Use Plastics Prohibition Bill. The Presumptive Tax Bill was passed into law on September 12, 2024. Furthermore, Ogundoyin celebrated the establishment of the Post-Legislative Scrutiny (PLS) Unit in January 2025, marking Oyo State as the first State House of Assembly in Nigeria to create a dedicated unit for this purpose. He assured the governor that the Assembly would diligently scrutinize the proposed budget, prioritizing the welfare of Oyo State's citizens, and also advocated for an upward review of the Consolidated Legislative Salary Structure for parliamentary staff to 100%.

The proposed N1.12 trillion budget for 2027, coupled with the active legislative agenda, signals a clear direction for Oyo State's future development. The emphasis on infrastructure, education, and health, alongside a demonstrated increase in Internally Generated Revenue, reflects a strategic approach to fostering economic growth and improving citizen welfare. The collaborative spirit between the executive and legislative arms, as highlighted by Speaker Ogundoyin, is crucial for the effective implementation of these ambitious plans and for ensuring accountability in public spending.

The array of legislative proposals, ranging from consumer protection to environmental regulations and property rights, indicates a proactive stance towards modernizing the state's legal framework. These forthcoming bills will not only shape the regulatory environment but also influence various sectors of the economy and daily life for residents. The establishment of the Post-Legislative Scrutiny Unit further reinforces the commitment to robust governance and continuous improvement in legislative effectiveness, setting a precedent for other state assemblies in Nigeria.

Lawyers and compliance officers advising clients in Oyo State, Nigeria, should closely monitor the final enactment of the 2027 appropriation bill to understand government spending priorities and potential procurement opportunities. The mention of specific legislative proposals like the Real Properties Protection Bill, Presumptive Tax Bill, Consumer Protection Agency Bill, and Single-Use Plastics Prohibition Bill indicates upcoming regulatory changes that could significantly impact businesses and require proactive compliance adjustments.

Source: Original reporting via PUNCH