Governor Lucky Aiyedatiwa of Ondo State has presented a N492.8 billion budget proposal for the 2026 fiscal year to the state legislature. Named the “Budget of Economic Consolidation,” the plan signals a shift from recovery to securing the state’s economic future.
The governor detailed that the budget is split, with N210.8 billion (42.78%) for recurrent expenses like salaries and N281.9 billion (57.22%) for capital projects. He stated this focus on infrastructure shows a commitment to transforming the state.
However, the proposal comes with a note of caution. Governor Aiyedatiwa warned that global economic troubles and changes to how national VAT revenue is shared could reduce Ondo State’s income. He explained that the new VAT formula might not favor the state’s largely civil service and farming population.
In a significant revelation, the governor announced a major revision to the current 2025 budget. He said the budget has been slashed from an initial N698.6 billion down to N490 billion. This cut was necessary because expected donor funds failed to arrive, making the original plan unrealistic.
The governor listed the key focuses of the 2026 budget. Top priorities include ensuring food security, improving infrastructure, developing human capital, and finding better ways to generate revenue internally to reduce waste and borrowing.
The Speaker of the House, Rt. Hon. Olamide Oladiji, praised the governor’s transparent handling of state resources. He promised that lawmakers would carefully review the budget proposal. The Speaker also thanked the governor for his role in resolving a recent impeachment crisis within the assembly.
