The Ogun State House of Assembly has passed a ₦1.669 trillion budget for the 2026 fiscal year. Lawmakers approved the spending plan on Monday, December 29. The bill now awaits the signature of Governor Dapo Abiodun to become law.
The approved budget represents a significant 63% increase over the state's 2025 appropriation. Governor Abiodun formally presented the proposal, titled the "Budget of Sustainable Legacy," to the assembly in early December.
The₦1.669 trillion budget is divided into two main parts. Recurrent expenditure, covering day-to-day costs, is set at ₦624.76 billion. Capital expenditure for projects receives the larger share of ₦1.044 trillion.
The government plans to fund the budget from several sources. Internally Generated Revenue is expected to provide ₦509.88 billion. Federal government allocations are projected at ₦554.81 billion. Another ₦518.90 billion is to come from capital receipts, which include loans and grants.
During its review, the State Assembly made a minor adjustment. It increased the projected Internally Generated Revenue by ₦2.193 billion. It then reduced the figure for capital receipts by the same amount. The total budget size remained unchanged.
A sectoral breakdown shows infrastructure receives the largest single allocation.It is set to get ₦526.15 billion, which is 32% of the total budget. The education sector follows with ₦275.40 billion (17%). Health is allocated ₦210.59 billion (13%).
Governor Abiodun outlined several major projects for the year. These include the construction of 450 kilometers of urban and rural roads. The plan also lists the development of the Olokola Deep Sea Port and a large cotton factory. The state will hold the Gateway Afrobeat Drum Festival and mark its 50th anniversary.
The budget has faced criticism from the opposition Labour Party(LP). The party's Southwest National Vice Chairman, Abayomi Arabambi, objects to the plan to use loans for funding. He described borrowing for half of the capital expenditure as alarming. The LP has vowed to legally challenge any move by the state government to secure new loans for the budget.
In his presentation, Governor Abiodun provided an update on the current 2025 budget. He said as of September 30, 2025, the state had achieved 58% of its pro-rated revenue target. Expenditure performance was at 52% for the same period. The governor expressed optimism that annual performance would reach between 70% and 75%.
With the assembly's passage,the final step is for Governor Abiodun to sign the appropriation bill. The Speaker of the Assembly, Oludaisi Elemide, has directed that a clean copy be transmitted to the governor for his assent. Upon signing, the Ogun State government will begin implementing the financial plan for the 2026 fiscal year.