Ogun 2026 Budget and Abiodun’s Bold Revenue Target

Femi Ogbonnikan

Following the series of town hall meetings organized by the Ogun State government to seek stakeholders’ inputs into the 2026 Medium-Term Expenditure Framework (MTEF), the governor, Prince Dapo Abiodun on Wednesday, precisely December 3, 2025 presented a ₦1.668trn 2026 budget to the State House of Assembly, tagged “Budget of Sustainable Legacy” for consideration. This amount represents a 63 percent increase from the previous budget. In a radical departure from the past, the entire framing of the budget preparation focuses on high capital allocation driven by aggressive revenue generation. A high Capital Expenditure (CapEx) ratio is the hallmark of a development-focused budget. ​ The 2026 budget is fundamentally designed as a Capital-Intensive Budget, with the aggressive Internally Generated Revenue (IGR) target being the required fuel for this elevated spending on development projects.​ As presented before the state assembly, the budget essentially focuses on ambitious Internally Generated Revenue (IGR) targets, amounting to ₦509.88 billion to finance the new fiscal year.For the realization of this significant increase, the administration intends to leverage the state’s position as an industrial hub and a rapidly expanding economy. As the Governor rightly pointed out in his address to the lawmakers, the Ogun’s economy continues to grow strongly with the annual GDP now standing at ₦17 trillion. The net effect of this sustained growth has further increased the State’s capacity for IGR which has been in an upward trend from ₦52bn in 2020 to ₦192bn 2024, leading to a projected ₦250bn in 2025.In this regard, the Governor specifically tasked the Ogun State Internal Revenue Service (OGIRS), including OPIC, the Bureau of Lands, and relevant Ministries to contribute ₦250 billion of this total. He charged each of these relevant agencies to intensify their revenue generation efforts, while also aiming at an aspirational target of about ₦750 billion by 2027. “Over the past six years, we have grown our State economy to an estimated Gross Domestic Product of about Seventeen Trillion Naira (₦17 trillion). Our Internally Generated Revenue (IGR) has grown considerably from about Fifty-Two Billion Naira (₦52 billion) in 2020 to close to One Hundred and Ninety-Two Billion Naira (₦192 billion) as of 2024, and is projected to reach about Two Hundred and Fifty Billion Naira (₦250 billion) for the full year 2025,” Abiodun enthused.To engender effective collaboration, the Governor emphasized the need for all Ministries, Departments, and Agencies (MDAs) to prepare ambitious budgets, viewing them as “pieces of a jigsaw that must fit together to complete the bigger picture.” The overall approach is one of fiscal discipline combined with accelerated investment in growth-enabling sectors. The overall analysis of the proposed budget highlights a renewed determination by the government to consolidate the gains made under its ISEYA Development Agenda, which stands for: Infrastructure, Security/Social Wellbeing, Education, Youth Empowerment/Job Creation, and Agriculture. Making specific reference to the government’s sustained effort for the creation of an enabling environment for industrial investment, Governor Abiodun highlighted key infrastructure achievements over the last six years, including the Gateway International Airport, now operational, as well as the ongoing work on the Kajola and Ijebu-Ode Inland Dry Ports.Other than these landmark projects, he also gave a long list of road interconnectivity, amounting to1500 kilometres over the last six years. He said: “We have constructed and rehabilitated over 1,500 kilometres of roads-more than the achievements of previous administrations over a combined period of sixteen years. This unprecedented milestone has opened rural communities, improved urban mobility, reduced transport and logistics costs, enhanced trade, and boosted productivity across all sectors.“Major roads either completed or under construction in the Central Senatorial District include the 13.1km Ijana–Alapako–Oni–Mosa Road in Obafemi-Owode; 12.98km Kila–Alagbagba Road in Odeda; 10.34km Tepona Road in Wasimi, Ewekoro; 6.5km Olodo–Adawo Road in Odeda; 19.02km Akinsinde–Coker Market Road; 4.3km Akute–Ajuwon Road; and the 1.45km Alagbole–Ajuwon Road, all in Ifo.In the West Senatorial District, key projects include the 10.08km Agosasa–Idolorisa Road in Ipokia; the 16.02km Oja-Odan–Orobiyi–Ebute Igbooro Road in Yewa North; and the 3.12km Oke-Erinja Road (Phase I) in Yewa South.In the East Senatorial District, projects include the 15.19km Itebu–Ago-Isobo Road in Ogun Waterside; the 14.09km Mamu–Aba Panu Road in Ijebu North; the 8.64km Ganganbiaro–Odo Ona Road in Remo North; the 1.5km Awomasu–Agbato Road in Ogere, Ikenne; the 1.6km Odolewu–Lasesi–Isiwo Road in Odogbolu; and the 1.4km Awokoya Road in Ijebu-Ode.We also facilitated the construction of a dedicated access road leading to the Prof. Wole Soyinka Railway Station in Abeokuta, and have prioritized key federal corridors such as the 103km Sagamu–Papalanto Road and the 72km Ota–Abeokuta Road—critical steps toward regional integration and transport efficiency. ”The breakdown of sectorial allocation in the new budget further reveals the government’s intension to prioritize infrastructure as a key driver for industrialization. Out of the total annual budget proposal, infrastructure alone gulps ₦526.15bn, representing the largest single sectoral allocation, reflecting the administration’s stated commitment to using infrastructure-specifically roads, bridges, and transport facilities—as the primary accelerator for economic growth, industrialization, and improved connectivity between the state and Lagos.This renewed commitment focuses on completing and rehabilitating road projects across all three senatorial districts to improve connectivity and economic activities. By focusing on infrastructure, the administration intends to cement the state’s position as an industrial hub. It also emphasises the planned urban renewal, including the redevelopment of areas like Kara near Isheri, which is described as an important gateway to the state, to address its poor condition.​The government’s decision to invest massively in infrastructure is like using one stone to kill two birds. Besides investment attraction, directly and indirectly, infrastructure will in turn generate massive employment for local engineers, artisans, and labourers through road construction and urban renewal projects. The administration’s human capital development initiative focuses on continuation of rehabilitation of science laboratories and technical colleges, training of STEM teachers, and enhancement of digital learning initiatives. For this realization, ₦275.40bn is earmarked for the education sector.This is closely followed by the health sector receiving an aggregate allocation of ₦210.59bn. Among others, expansion of access to quality healthcare through the Ogun State Health Insurance Scheme, renovation and equipping of Primary Healthcare Centres, and installation of solar power systems constitute the primary focus of the administration. Recalling the giant strides the administration has recorded, the Governor said: “Through targeted renovations, new facilities, solar-powered energy systems, and the implementation of Electronic Medical Records (EMR) at over 140 Primary Health Care Centres, we have strengthened healthcare delivery across the State.“The expansion of the Ogun State Health Insurance Scheme has increased enrolment to over 70,000 citizens, reducing out-of-pocket medical expenses and improving access to quality care—an achievement that continues to ease the financial burden of healthcare for thousands of households. ”For the Agriculture sector, the government’s focus on food security signals a determined effort to leverage the state’s arable land to achieve food self-sufficiency and boost exports. This involves strengthening value chains, procuring modern farm machinery, rehabilitating farm settlements, and transforming rural markets like Kila Market into modern agro-logistics centres.More importantly, the Ogun Youth Agricultural Programme aims to train thousands of youths annually in modern techniques like greenhouse management, creating new farmers and agro-entrepreneurs, thereby addressing food security.Youth empowerment and job creation focuses on empowering young people, supporting small businesses, and strengthening social protection systems. ​The strategy in the 2026 budget is focused on two main directions: direct skills provision and financial support for entrepreneurship. By projection, the budget is expected to fund the scaling up of OGYES, which is designed to provide grants and interest-free loans to young entrepreneurs. Previous announcements indicated grants ranging from N500,000 to ₦10 million for business-oriented youths and women. The new budget proposal aims to increase the reach and scope of these grants.​For business support initiative, the plan is to strengthen support for Small and Medium Enterprises (SMEs), which are the largest employers of labour outside of government. This includes funding for capacity building and access to markets.​To enhance skills development and employability, dedicated funds will be allocated to strengthen the Ogun Job Centre and Work Hubs like the one at Idi-Aba, Abeokuta. These centres serve as a one-stop shop for career guidance, vocational training, and linking job seekers with industrial employers in the state.​Additionally, arrangement has also been made for the continuation and expansion of partnerships with international agencies (such as GIZ-SKYE) to train graduates in essential employability and soft skills needed for the 21st-century labour market.A significant provision has equally been made for intensive digital literacy and technical/vocational training to equip youths with market-ready skills. The biggest indirect job creation efforts are tied to the major capital projects, which the ₦500 Billion IGR target is meant to finance. The Governor views security as indispensable for achieving the ambitious ₦500 Billion IGR target. According to him, investment in security ensures investor confidence. A safe environment is crucial for maintaining and attracting new industrial investments, which are the main engine of the state’s revenue. The huge allocation for security aims to ensure that the major transit corridors, especially the Lagos-Ibadan expressway and border towns like Kara, are secure to facilitate commerce and movement of goods. A significant portion of the budget will be channelled towards capital expenditure for procuring high-tech equipment, vehicles, and security infrastructure to solidify Ogun’s position as a peaceful industrial state.​ Given the fact that security is one of the core pillars of the Governor Dapo Abiodun’s ISEYA agenda, the administration’s stated focus and previous spending history provide clear indicators of its priority. ​The renewed strategy is focused on enhancing three major areas: Community Policing, Technology, and Infrastructure Security.Consequently, the budget prioritizes the recruitment and enhanced equipping of Amotekun operatives (the Western Nigeria Security Network) to strengthen community surveillance and crime prevention, especially in rural areas, forests, and border communities. By providing recurrent support and overhead for the operational activities of Amotekun, the corps will play a crucial role in complementing the efforts of the Nigeria Police.​ For enhanced surveillance, allocation for the deployment of solar streetlights in strategic locations and industrial areas has been made in the budget to improve visibility at night, which is a significant deterrent to crime. This is coupled with investment in communication equipment, patrol vehicles, and technological aids for security agencies to ensure rapid response times.​More than a finance document, the budget maintains a careful balance between fiscal discipline and effective service delivery, ensuring that every naira expended yields measurable value. It addresses unemployment and poverty, supported transformative economic growth, and social well-being, while also committing to strategic investments that secure long-term prosperity.

*Ogbonnikan is a Senior Special Assistant (SSA) to the Ogun State Governor on Media