By: Lauretta Fagbohun, Abeokuta.

The Ogun State Government has linked the 58 per cent increase in its 2026 fiscal plan to an ambitious infrastructure rollout, rising Internally Generated Revenue (IGR), and broad economic reforms designed to cement the state’s position as Nigeria’s leading industrial and logistics hub.
The Commissioner for Finance and Chief Economic Adviser to Governor Dapo Abiodun, Hon. Dapo Okubadejo, made this known during a media briefing on the breakdown of the 2026 appropriation, christened the “Budget of Sustainable Legacy,” held at Oke-Mosan.

He explained that the magnitude of ongoing and proposed capital projects required an expanded fiscal framework.

Okubadejo identified the development of two dry ports as a central factor behind the enlarged budget. According to him, one of the facilities is being financed by the Federal Government, while the other is structured under a public-private partnership arrangement with a private investor.

He noted that the dry ports would ease cargo movement, enhance export activities, and cut logistics costs for over 80 manufacturing firms operating within the state. The initiative, he said, reinforces Ogun’s reputation as Nigeria’s industrial capital by strengthening supply chain efficiency and attracting fresh investments.

The finance commissioner further disclosed that renewed momentum around the Olokola Free Trade Zone and the proposed Olokola Deep Sea Port also influenced the budget expansion.

He added that the recent announcement of oil discovery in the axis could unlock additional revenue streams for the state after commercial viability assessments are completed, potentially positioning Ogun as an oil-producing state.

In the transport sector, Commissioner for Transport, Engr. Olugbenga Dairo, revealed plans to extend the Lagos Red Line and Lagos Blue Line projects into Ogun State. He said the proposed rail integration would boost commuter mobility, stimulate daily economic activities, and deepen the state’s connection to regional and national transport systems.

Dairo added that road infrastructure remains a major component of the capital expenditure plan. He cited the reconstruction of strategic corridors, including the 42-kilometre interchange road linking Lagos and Abeokuta, which he said has spurred significant industrial and commercial growth along the route.

He also highlighted the upgrading of roads connecting border communities such as Ikorodu, Ogijo, and Sagamu to facilitate seamless movement of goods and services.

Okubadejo maintained that the ongoing infrastructure expansion has accelerated migration into the state, driving housing demand and supporting what he described as an emerging housing and power revolution.

On debt sustainability, he assured that the state’s borrowing profile remains manageable, with structured loan tenors, competitive interest rates, and defined repayment plans.

He disclosed that Ogun’s domestic debt rose from about ₦133 billion in 2019 to approximately ₦194 billion as of 2025, while foreign debt exposure has been largely impacted by exchange rate fluctuations.

He further pointed to pension reforms as part of the state’s economic restructuring, noting improved remittance consistency and steady progress toward a fully operational contributory pension scheme.