Oyo State Governor Seyi Makinde has warned that delays in releasing Nigeria LNG Limited (NLNG) dividend funds expected by states could affect infrastructure development and economic growth.
Makinde raised the concern on Saturday during the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan.
The governor said each state was expected to receive ₦250 billion from the NLNG dividends but claimed the funds would not be released until after the 2027 general elections.
“Each state was supposed to get ₦250 billion. We had already identified projects that would expand Oyo State’s economy. But they have now said the money will not be paid until after the election. Is the election more important than the people of Nigeria?” he asked.
Makinde said the delay could limit the ability of state governments to sustain infrastructure projects and cope with increasing governance costs.
He disclosed that Oyo State’s monthly wage bill had risen from ₦4.5 billion in 2019 to ₦18 billion in 2026, while inflation had pushed up the cost of major projects.
According to him, releasing the funds on time would help states maintain ongoing projects, manage financial pressures and support economic growth.
On Oyo State’s development agenda, Makinde said his administration had prioritised infrastructure as a driver of economic expansion, adding that investments in the sector had increased the value of assets across the state.
He said the next stage of development would require prudent financial managers to sustain and improve existing institutional reforms rather than simply increasing the number of engineers.
The governor also disclosed that his administration planned to implement about 30 per cent of the 2027 budget before a new government takes over on May 29, 2027.
He thanked residents for their support over the past seven years, stating that budgeted projects had recorded a 70 per cent chance of implementation during the period.
On agriculture, Makinde defended his administration’s tractorisation policy, saying the decision to scrap the loss-making government tractor unit and privatise tractor services had improved farmers’ access to mechanisation.
The Speaker of the Oyo State House of Assembly, Adebo Ogundoyin, commended the governor for incorporating public consultation into the budget process. He said the approach had helped improve project execution.
The Secretary to the State Government, Musibau Babatunde, said the administration had shifted from ad hoc budgeting to a performance-driven system, recording more than 70 per cent budget performance in 2026.
Babatunde explained that the consultative process, which began in the state’s three senatorial districts before expanding across Oyo, now includes feedback mechanisms, quarterly budget tracking and mandatory compliance by ministries, departments and agencies.
He said MDAs must demonstrate how they had incorporated contributions from public consultations before defending their budgets at the pre-treasury stage.
Earlier, the Commissioner for Budget and Economic Planning, Ayobami Ojo, described the engagement as an opportunity to build consensus on development priorities. He said the 2027 budget should be guided by realistic revenue projections, prudent spending and effective allocation of resources.
Participants, including local government representatives, student unions, farmers, persons with disabilities, religious leaders, civil society groups, artisans and market associations, made recommendations on roads, security, welfare and project maintenance.
The event was attended by Deputy Governor Bayo Lawal, Chief of Staff Akinwale Akinwole, Head of Service Adenike Fashina, government officials, traditional rulers, labour leaders and youth groups, among others.