Inside Ibadan


It is with a deep sense of appreciation to the Almighty that I stand again before the Honourable members of the Oyo State House of Assembly, this 29th day of December 2016, to present the Oyo State 2017 budget proposals for consideration and passage.

Similarly, I heartily express my profound appreciation to the leadership and members of the Legislature for their unflinching support and cordial relationship with the Executive arm of government towards the realization of the repositioning agenda of our administration. My expectation and hope is that this will not only continue but wax stronger in our collective responsibility to propel Oyo State into an enviable position among the comity of states in Nigeria.

Mr. Speaker, Honourable members of the House, on Tuesday, 22nd December, 2015, I stood in this hallowed chamber to present the 2016 budget proposals of our government. That budget which was christened “Budget of Renewed Commitment” was presented to the Oyo State House of Assembly by a Government which had just been given an unprecedented renewed mandate to steer the ship of the state on the path of sustainable development.

The people of Oyo State reposed their confidence in us for the second term which was premised on our modest achievements particularly the people oriented initiatives, policies and programmes of our administration.

Rt. Hon. Speaker, Honourable members of the House, it will not be out of place for me to recall the reign of terror which this administration. inherited at its inception. Our commitment to the restoration of safety and security of lives and property needs no restatement; this of course has culminated in a peaceful Oyo State which has enabled development in all spheres of lives. You will also be reminded of our welfarist package for our workforce which included prompt payment of salaries and 300% increase in salaries, 142% increase and payment of backlog in Pension, unsolicited thirteenth month salary, provision of free and dedicated bus ride for civil servants, 100% increase in Staff Housing/Car Loan, lifting of career restriction, to mention. a few.

The welfarist programme was also extended to traders for whom we built markets and allocated free shops, in addition to the provision of interest free loans.

Our efforts in infrastructural development witnessed an unprecedented dualization of entry points to major cities across the State. We also constructed the first fly-over by a civilian administration as well as rehabilitation and reconstruction of over 200 roads. Our administration purchased and distributed 360 tractors and 68 Buldozers/Graders, the first of its kind in Oyo State.

Over one million people were also beneficiaries of the free medical services through our free health mission across the 33 local government areas.

The foregoing was in furtherance of our people — centric mission of improving the lives of the citizenry.

We are still committed to this mission.

In the course of the year the national economy was confronted with double shocks of reduced level of production due to domestic upheavals and low price of crude oil arising from the vagaries of the international oil market. This has resulted in consistent dwindling in national revenue and its resultant effect of substantial reduction in Statutory Allocation from the nation’s federation account to all tiers of Government. The direct effect of this on the citizenry is no more news.

The economic situation that prevailed globally, nationally and indeed, the sub-nationals, in the outgoing year has made it imperative for our State, to identify and embark upon economic rejuvenation to engender self reliance. We are therefore left with no option than to evolve strategies for steering the ship of the State towards the path of economic viability.



Government in its efforts to consolidate its earlier programmes and policies aimed at ensuring the security and safety of lives and property in the State within the year embarked on the following:

  • Sustenance of the commitment to the Joint Security task force established in the State Capital and the six zonal commands.
  • • Reconstitution of the Board of the Security Trust Fund for capacity strengthening
  • • Full implementation of the Law on Security Levy on all Government contracts.

Permit me at this juncture to decry publicly the recent spate of violence occasioned by the less than charitable activities of some hoodlums and thugs popularly referred to as “One Million Boys” and other similar groups.

The Oyo State Government under my leadership will not tolerate any form of violence, brigandage, destruction of properties, chaos and lawlessness under any guise. We will deal with such perpetrators with full force of law.


A review of the outgoing year confirmed our commitment to a deepened. culture of. inclusive governance towards ensuring optimal allocation of our meagre resources. This is with a view to meeting the prioritized needs of our people. Emphasis was consequently placed on the provision of physical and social infrastructure to empower our citizenry for productive engagement in their preferred but legitimate economic endeavours.

The “Agric-Oyo” programme, inaugurated earlier this year, is one of such efforts. Its emerging value chain frame work has the potential to promote food sufficiency, youth employment, reduction in the rate of rural-urban migration and, above all, enhanced social security.

It is no gainsaying that the laudable “Agric-Oyo” programme implemented in 2016 has raised the level of food production in the State by 27.5% and GSP by 1.5%. Consequently, Government will extend “Agric-Oyo” activities to the remaining Local Government Councils that have shown a willingness to collaborate with the Ministry of Agriculture.

The Ministry will also kick start in the 2017 fiscal year, the process of creating one million (1,000,000) jobs across all local governments. through the implementation of another laudable programme tagged ‘Anchor Borrowers’ programme.

It is our expectation that in the immediate future, Oyo State would become the Food Basket of South Western Nigeria and ultimately West Africa.


It will also be recalled that Government noted sadly the declining standard of education in the State over the years. Consequently, a 31 member Committee on educational reforms was set up to look into the issue.

I am happy to report that arising from the submission of the reports of the Committee recently, a thirteen point panacea to address the issue has been adopted by Government in its Gazette. This solution which confirms the need for participatory management of identified stakeholders in our secondary schools comprises:

  • Abolition of automatic promotion
  • • Restructuring of all agencies in the education sector for optimal performance and higher productivity
  • • Classification and categorization of schools
  • • Periodic verification of personnel, students and infrastructure
  • • Equitable redistribution of subject teachers
  • • Capacity building for quality assurance
  • • Implementation of Education Trust Fund
  • • Retention by schools of the N1000 levy per student per term
  • • Promotion of technical and vocational education
  • • Improvement of ICT education
  • • Enforcement of registration and regulation of private schools
  • • Resuscitation of Co-curricular activities
  • • Establishment of School Governing Board (SGB) as community participatory model for the management of schools.

We have therefore initiated the Schools Governing Board (SGB), an initiative aimed at involving various stakeholders in the management of our public schools to improve on the provision of qualitative education in the State. It is hoped that direct involvement of core stakeholders including representatives of parents in the management of our schools system would evolve the much desired better standard of turnouts. We have also embarked on the drive to ensuring that our parastatals and Tertiary Institutions become viable and self-reliant.


Government is committed to the continued provision and maintenance of a functional network of roads that will enhance socio -economic growth throughout the State. Government successfully constructed and rehabilitated many roads during our first term in Office. A lot more that have been added in 2016 are at various stages of execution.

These include the following:-

i.Dualization of 4.0km Ibadan/Oyo Iseyin/Oyo Junction-Owode with the expansion of 2.5km spurs to Akesan-Palace,Oyo and Sectional repairs of 3.8km portion of the Old Ibadan-Oyo Road;

ii.Construction of Ijokodo-Apete Road and its associated bridgeworks;

iii.Dualization of Ilorin Express Junction-Ikoyi-Takie-Palace –Ogbomoso Grammar School with 500m extension from Skye Bank to Bowen University Teaching Hospital and 200m extension to Iresaapa Road;

iv.Dualization of Toll-gate Interchange-Efunsetan Roundabout-Challenge Expansion Phase 1;

v.Dualization of Efunsetan Roundabout-Podo Roudabout-Tollgate Interchange Phase 2;

vi.Dualization of Ibadan/Oyo-Iseyin Junction-Iseyin/Okeho Junction Road;

vii.Reconstruction/Rehabilitation of Mobil-Oluyole-Wema Bank, Apata Road;

viii.Rehabilitation of Elewuro Onireke-Apatuku-Olodo Phase 1.

In furtherance of the infrastructural development policy of this Government, the underlisted roads have also been awarded for construction/rehabilitation in the outgoing fiscal year;

i. Dualization of Idi-Ape-Bashorun-Akobo Ojurin-Odogbo barrack;

ii. Dualization of Agodi gate-Alakia New Airport;

iii. Dualization of Saki Township road and Rehabilitation of Eleyele-Ologuneru-Ido-Eruwa road and

iiii. Expansion of Oke-Adu Bus Stop, Idi-Ape, Iwo Road.


Realizing that Agriculture alone cannot develop and sustain the economy and ensuring the realization of our goal of self reliance, Government has kick started an industrial revolution through the establishment of the Polaris- Pace Setter Free Trade Zone comprising a N2bn investment in a 1000 hectares of land on the Lagos Ibadan expressway with expected 175 factories in the zone.

The project whose sod was turned on November 1 2015 is expected to achieve the following:

  • Employment generation
  • • Wealth creation
  • • Production of goods and services
  • • Generation of income for the State
  • • Creation of export hub for the West African subregion
  • Additional initiatives of the industrialization of the State include:
  • New Inland Dry Port with APM Terminal
  • • 400 hectare Transformation Industrial Park
  • • Ginnery for processing Cotton
  • • Remodeling of Agbowo Shopping Complex into a world class shopping mall.


Land remains the indisputable most valuable asset of the State. To unlock the wealth embedded in our land resources and attract the investing public, we have instituted the following policies:

Agriculture — 90% Discount

Manufacturing — 70% Discount

Commercial — 50% Discount

Religious and Educational — 85% Discount

  • Opening up of new GRAs in Ibadan, Saki, Iseyin, Oyo-Ibadan Expess road, Oyo and Ogbomoso.
  • • Land Documentation: Granting of C of O in 60 days
  • • Governor’s Consent/Mortgage — 7 days
  • • Sublease and Assignment — 14 days
  • • Processing of Building Plans and Permits — 21 days
  • • Provision of. World Class Housing Estates
  • • Administration and collection of Land use changes


Recognizing the central role of the environment and water resources for sustainable development of the State, the Government will continue to ensure effective management of the environmental and the abundant water resources endowment of the State. It is essential to strategically preserve all the environmental elements towards enhancing the promotion of public health, agricultural vitality, industrial and investment promotion and sustenance of the ecosystem.

To this end, the statutory functions of the Government in environmental monitoring, control and sanitation have been strengthened, especially with respect to the integrated solid waste management initiative, which has the potential to ultimately generate as much as 30MW of electricity


In spite of the negative financial head winds and dwindling revenue to the State, we have introduced innovative and proactive measures to continue to address our fiscal obligations.

Consequently, the following measures have been adopted:

  • Dedication of 100% of FAAC receipt and FSP inflows to payment of salaries
  • • Emphasis on cash generating projects in the 2017 budget
  • • Key into FSP bailout and infrastructure support facilities from FGN
  • • 50% reduction in costs and overheads
  • • Aggressive and renewed IGR drive
  • • Establishment of Efficiency Unit
  • • Performance Linked Disbursement in 2017 fiscal year

In addition to the achievements of government articulated earlier, this administration has continued to engage and interact more intensively with our development partners, especially the World Bank in the implementation of landmark projects that will impact positively on the citizenry. One such project is the Ibadan Urban Flood Management Project (IUFMP).


WORKFORCE RESTRUCTURING: The essence of restructuring is to re-invigorate and re-energize the public service with a view to improving the efficiency of the system. It is a known fact that good governance and especially effective delivery of quality public goods/services is anchored on a virile public service.

It is however sad to note that there is a decay that has been built up for a long period of time in the State public service that requires a serious clean-up, hence the need for the ongoing restructuring programme in the service which is focused on the quantity and quality of the work force. At the completion of the exercise, the wheat must have been separated from the chaff.


The Rt. Honourable Speaker and Honourable Legislators, as you are all aware, the election into our Local Governments and the newly created Local Council Development Areas will hold in 2017. This is intended to bring governance to the door steps of the people and to speed up development at the grassroots. So, the content and structure of this proposal has captured our vision towards achieving this and the continuation of our developmental strides, in the next fiscal year.


At this point, I wish to give a brief insight into the performance of the State Budget in 2016 as shown on Tables 1–3.

The sum of N6.2b spent on the Economic Sector (Table 3) represented 70.8% of the total N8.8b Capital Expenditure expended as at September of this fiscal year. This has confirmed the priority attention we are giving to economic and infrastructural development.


The Rt. Honourable Speaker and the Honourable Members of the House, distinguished ladies and gentlemen, the 2016 fiscal year was indeed tough given the macroeconomic trend/indices as pictured above, but the fiscal year also presented the State with an opportunity to re-structure and reposition our economy in line with the existential realities locally and internationally.

In the cautious optimism of the State Government, we are indeed hopeful that the signals on ground are pointers to economic recovery in the 2017 fiscal year. At the national level, the oil price is appreciating globally. We have also embarked on the reorientation and refocusing the citizenry towards increased participation in agricultural activities and also initiated various programmes to ensure economic inclusiveness within the State.

In the 2017 fiscal year, we have strived to enhance the revenue base of the State by expanding the tax net, by blocking all financial loopholes, redirecting and refocusing governance within all MDAs and by institutionalizing prudence in all spheres of administration to enthrone the BUDGET OF SELF RELIANCE.

Consequently, towards the preparation of the Budget proposal, all MDAs ranked their budget proposals in descending order of priority. All efforts will therefore be geared towards maximizing positive socio-economic impact of the State’s fiscal operations on the populace.


In line with the above, we have anchored the 2017 budgetary proposals on the following policy thrust and philosophy:

(i)The top Priority of Government shall be on Infrastructure, Agriculture and its value-chain framework, Education and Health while other sectors would also be given adequate attention.

(ii) Improving Internally Generated Revenue and Revenue Sufficiency;

(iii) Pursuance of Projects and Programs that will attract Assistance and Sponsorship from Development Partners

(iv) Promotion of Public-Private-Partnership as a vehicle in the delivery of infrastructure and services;

(v) Stimulating Citizens’ interest in Micro, Small and Medium Scale Entrepreneurships; and

(vi) Efficient and Effective Utilization of Resources through rigorous Monitoring of the implementation and Evaluation of the impact of projects and programs on the citizenry.


Taking into consideration the afore mentioned, a total budget of. Two Hundred and Seven Billion, Six Hundred and Seventy-One Million, Four Hundred and Ninety-five Thousand, Three Hundred Naira (N207,671,495,300:00) only is being proposed for 2017 fiscal year.

In the face of the challenges in the outgoing year, arising from almost complete reliance on Federal Allocation which has grave consequence, as Federal Statutory Allocation itself is dependent on extraneous factors, this budget has been designed to be Internally Generated Revenue driven. In the Informal sector, the Board is targeting 20% of the population which is presently pegged at 6million individuals with presumptive tax rate of N3000 per annum.

Ministries, Departments and Agencies of Government submitted achievable projections. The restructured Board of Internal Revenue is poised for enhanced performance. Nonetheless, this proposed budget has been as realistic as is practicable to ensure a productive performance in the budget tenure.


Rt. Hon. Speaker, the structure of the 2017 budgetary proposal reflects the priority the Government has accorded the various sectors, in terms of their anticipated developmental effects. Consequently, the relative aggregate sectoral allocations are as follows;

44% of the total budget allocated to the economic and social sub-sector underscores the State Government’s determination to continue to pursue a people-centered, empowerment-focused agenda.

We consider this as the best antidote to the problem of poverty amongst our people. In line with Fiscal Sustainability principle, personnel expenditure has been rationalized to be 26.7% of the total budgeted expenditure.

As a fall-out of the Pension Perform Act, 2014 (as amended) the State is set to embrace the Contributory Pension Scheme. It has become the only prudent option to relieve the State Government of the mounting retirement benefits liability.

The scheme also allows a uniform and transparent settlement of retirement benefit of all employees in the public service of the State.


With respect to education, efforts will be made during 2017 to complete all on-going projects, such as construction and furnishing of classrooms and model schools across the geo-political zones of the State. Also, inspection of schools will be intensified towards enhanced quality of education and improved students’ performance in internal and external examinations. I am glad to inform this august gathering that our effort at partnering with the Federal Government and its agencies in the provision of access to qualitative education continues to be beneficial.

It will be recalled that it was reported here in 2014 that the Federal Government was proposing to establish a Police Children Secondary School, at Igboora. I am glad to inform you that the school is finally taking off. in January 2017.


A similar principle applies to other key people-centred sectors such as health, water and sanitation, environment as well as peace and security. In the coming year 2017, the commitment of Government in terms of provision of road Infrastructure is to ensure completion or near completion of all on-going projects (depending on their respective award schedule) and make them available for use to further improve the socio-economic wellbeing of the good people of Oyo State.

Consequently, our Administration has proposed the sum of Twenty-Five Billion, Five Hundred and Two million, Two Hundred and Sixty-Two Thousand Twenty-One Naira and Ten kobo (N25,502,262,021.10) only for the on-going road projects, construction of new roads, as well as expansion and rehabilitation of some. township and intercity roads plus other infrastructure development for the year 2017.

The Government is keenly interested in Rehabilitation/Restoration of most existing Public Buildings to prevent further deterioration and the construction of new ones in the year 2017. The sum of N532,676,590.00 has thus been proposed for the various public building projects in the coming year.

Provision has also been made for the resuscitation of skill acquisition centres (block making, carpentry/furniture and welding workshop of the Ministry of Works and Transport at Eleyele) for the training of our teeming youths across the State. This, when operational, will also serve as a source of revenue for the State Government.

Furthermore, the Government of Oyo State would continue to intensify her effort in improving accessibility to potable water. The giant ambition. to achieve 90% accessibility at the end of year 2017 is being reinforced by several on-going water provision projects at Ibadan, Ayete, Iganna, Ilero, Igbeti expansion, Ogbomoso Expansion and Igbo-ora/Eruwa rising mains.

Other new projects which will take off in the year 2017, include construction of waterworks at Okeho, Ogboro, Sepeteri, Ago-Are, Tede, Oje-Owode and Ofiki. Others are Omi-Adio, Fiditi, Akanran/Ona-Ara, Idi-Ayunre, Akufo/Ajibode and Alabata/ Moniya.

The Honourable Commissioner for Finance and Budget will present a detailed analysis of the State’s 2017 Budget proposal at a public forum in due course.


Mr. Speaker, esteemed Honourable Members, our Royal Fathers, distinguished Ladies and Gentlemen, there is no doubt that our administration was confronted with several challenges during the outgoing fiscal year. Prominent among these was the steady decline in fund allocation to the State from the Federation Account throughout the year and, as earlier mentioned, this has impacted negatively on our level of budget performance.

However, these challenges have provided rallying points for purposeful partnership with the various stakeholders in the State especially the Executive and Legislative arms, on the one hand, and between the government and well-meaning individuals and organizations, on the other.

The recent inauguration of town hall meetings in each geo-political zone of the State is nothing but to register our appreciation to the general populace for allowing peace to continue to reign in the length and breadth of the State and also as a forum to receive feedback from the electorate on the need and aspiration of the people. The feedback from the town hall meetings, have influenced the content of the 2017 proposed budget for our stewardship report for the year.

As noted earlier, the Year 2017 Budget has been carefully structured towards consolidating the gains of the previous years. Consolidating the gains of achievements is not an easy task.

I wish to reiterate and remind us, that February 2017 is around the corner when we shall all have the opportunity to elect our leaders at the grassroots level. The leaders that are expected to emerge are those that will be able to key into and consolidate our developmental agenda. I, therefore, solicit your support for the successful conduct of the elections.

I also hereby register my sincere appreciation for the wonderful support that our administration has enjoyed from all segments of the State. These range from our highly revered traditional rulers to community, political and opinion leaders, professional and trade groups, civil society and non-governmental organizations, as well as students across all educational levels. Special thanks go to the Civil and Public Servants for their steadfast commitment to the sustainable transformation of our dear State.

Even in the face of challenges that have made regular payment of salaries an onerous task, the loyalty and commitment of our workers is recognized and appreciated.


Finally, I am grateful to the good people of Oyo State for their understanding and appreciation of the genuine intention of this administration to uplift the State politically, socially and economically.

Let me also use this medium to appreciate all, particularly our market men and women who have co-operated in the payment of taxes.

You have demonstrated to us your readiness to contribute directly or indirectly to the State’s economic growth. On the other hand, I appeal to tax defaulters to perform their civic responsibilities and join hands with others to contribute to Government efforts at advancing the development of the State with its attendant socio-economic benefits.

Mr. Speaker distinguished Members of this Honorable House; it is therefore with great pleasure and delights that I present the 2017 budget proposal, the ‘BUDGET OF. SELF-RELIANCE’ for your consideration.

As this year winds down, let us rekindle our hope in the power of positive change that will transform our story to glory. I wish us all a prosperous year 2017. I thank you all for your attention.

Sen. Abiola Ajimobi

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