News in brief:
– Oyo State’s 2025 budget allocates ₦18.76 billion to agriculture, focusing on farm input distribution, subsidies, and low-interest loans.
– Over 43% of the budget is for improving infrastructure and education as it proposes ₦80,000 minimum wage for civil servants.
The Oyo State Budget Office has revealed that the agriculture sector will receive ₦18.76 billion (2.77% of the total budget) in 2025.
A significant portion of this allocation will support the continued distribution of farm inputs to over 10,000 farmers. Additionally, the administration plans to subsidize tractor services for smallholder farmers.
In 2024, Governor Seyi Makinde announced the allocation of ₦1 billion to provide low-interest loans for farmers under the SAfER initiative. About 3,525 farmers benefited from this program, while nearly the same number received additional support through the NG-CARES program.
There will also be a focus on attracting investors and increasing produce sales to boost agribusiness development. For instance, the ₦500 million in low-interest loans disbursed to 2,085 micro and small enterprise investors in 2024 will be expanded upon.
To enhance government revenue, trucks transporting produce out of Oyo State will now be taxed. This move, alongside the tax reform proposal by President Tinubu, could significantly boost the state’s coffers.
Meanwhile, infrastructure development received the highest budget allocation of ₦152.27 billion (22.46% of the total budget). This reflects a similar trend seen in other states’ 2025 budgets.
Nigeria’s agricultural households, mostly residing in rural areas, will benefit from the road construction and rehabilitation projects. The budget will fund the extension of feeder road rehabilitation to other zones in 2025 to boost socio-economic activities.
Governor Makinde also confirmed the continuation of the transportation subsidy under the SAfER initiative, which has reduced transportation costs for 30,000 residents, facilitated by 75 operational buses.
For capacity building, the education sector will receive ₦145.35 billion (21.44% of the total budget). This allocation will support the renovation of dilapidated schools and the recruitment of primary and secondary school teachers.
Oyo State’s total budget of ₦678.09 billion dedicates 50.59% to capital expenditure and 49.41% to recurrent expenditure. The government also plans to improve the budget implementation rate to over 70% in 2025. Furthermore, it proposes an ₦80,000 minimum wage for civil servants, marking a significant increase from previous awards.
