PSPI

OYO STATE, pSPI REPORT 2025

The Pace Setter State

Overall pSPI Rank:

11th out of 36 states & the FCT

pSPI Ranking:

(Very Good 3-Star Performer)

People & Culture

A State of Firsts

Oyo State, established in 1976, is known as the Pace Setter State, home to 33 Local Governments and a population exceeding 7 million. Its capital, Ibadan, is Nigeria’s third-largest city, with a landmass of about 28,454 sq km. Renowned for being the first city to host several Nigerian milestones — from the first university (University of Ibadan) to the first television station.

Cultural pride runs deep, with famous festivals like the Sango Festival, honoring the Yoruba god of thunder, Oke Ibadan Festival, celebrating the city’s ancient hill origins, and the New Yam Festival, marking the end of the farming season.

 

 

 

Politics

The Exception in the Southwest

While most of the Southwest is firmly in APC’s grasp, Oyo State has often charted its path, refusing to conform to the regional trend. Governor Seyi Makinde of PDP is one of the few opposition governors in the Southwest, and his re-election in 2023 solidified his political standing.

Makinde’s governance style, which focuses on infrastructure, economic policies, and education, has earned him cross-party appeal. Unlike other states where opposition parties are fragmented, Oyo’s PDP remains united, making it a formidable force against APC.

Oyo’s independent streak makes it a fascinating political entity. Whether Makinde’s success translates into long-term PDP dominance remains to be seen, but for now, Oyo continues to stand apart from its neighbours

Economy - Agriculture, Industry & Research

Oyo’s economy thrives on a strong agricultural and industrial base, with key cash crops like cocoa, palm oil, and cotton, alongside staple foods such as yams, cassava, maize, and plantains. Ibadan, the state’s capital, serves as a major manufacturing hub, housing breweries, publishing firms, and auto assembly plants.

Oyo is home to research institutions such as the International Institute of Tropical Agriculture (IITA), the Cocoa Research Institute of Nigeria, and the Federal Agricultural Research Institute, reinforcing its position as a centre for agricultural innovation and development

Key Economic Indicators (pSPI 2025)

MetricValueNational Rank
IGR Per Capita₦4,97915th
IGR Per km²₦1.8 million17th
IGR to Total Revenue17% 15th
IGR to FAAC 143% 3rd
Assets Per Capita₦44,22720th
Debt Per Capita₦25,90713th
Capital Expenditure Per Capita ₦21,85328th
What this means:

Oyo generates substantial IGR, particularly via its trade corridors, ranking 5th nationally in IGR per trade route. However, its capital investment is low and assets per capita remain underdeveloped compared to peers like Ogun and Lagos.

pSPI Performance - Strong Mid-Table Performer

Strengths

Strong Internal Revenue vs FAAC: 3rd in IGR to FAAC, indicating less reliance on federal allocations.

Decent Asset Base: Oyo ranks 20th in Assets Per Capita, indicating moderate asset accumulation.

Public Teacher Availability: 8th nationally, ensuring a relatively good student teacher ratio.

Weaknesses

Poor Infrastructure Investment: 28th in Capital Expenditure Per Capita, showing limited investment in developmental projects.

Healthcare Staffing Gaps: 30th in Public Health Workers Per Population, highlighting shortages in health personnel.

Low Current Ratio: 35th, meaning short-term liabilities exceed assets, potentially risking liquidity.

Citizen Satisfaction - The Public Verdict

While Oyo is generally seen as a progressing state, citizens remain moderately satisfied and barely frustrated with core services:

Service AreaRank% Satisfied
Quality of Roads23rd 26%
Honesty of Public Servants11th24%
Security of Lives and Property4th 55%
Quality of Public Primary and Secondary Education14th26%
Affordability of Public Primary and Secondary Education7th63%
Quality of Public Hospitals11th26%
Affordability of Public Hospitals10th26%
Gaining Meaningful Employment2nd 26%
Awareness of Government Policy and Programmes9th26%
Government Support for Local Businesses15th18%
Available, Effective, and Safe Public Transportation6th45%
Availability of Clean Water Supply26th18%
Cleanliness of the Environment18th 29%
Buying, Registering, and Owning Landed Property6th 39%
Availability of Legal Economic Opportunities4th29%
Attitude of State-Controlled Law Enforcement Agents14th 21%

Relocation Trends & Insights

Top Preferred Relocation States & Possible Reasons

Lagos State

Economic and business opportunities, better social amenities

FCT Abuja

Government jobs, better infrastructure, perceived better governance

Osun State

Cultural link, lower cost of living

Ondo State

Regional familiarity, cheaper living costs, and shared economic networks

Kwara State

Emerging governance improvements, agribusiness support

Least Preferred States & Reasons

Borno State

Security concerns due
to insurgency

Zamfara State

Banditry, poor infrastructure

Lagos State

Stressful lifestyle, traffic, expensive housing

Oyo State itself

Disappointment with governance and infrastructure decay

Anambra State

Perceived crime rate
and social unrest

Local Government & Grassroot Governance

The gap between government and citizens is stark at the local level:

do not know their
LG chairman

unaware of local government projects

unaware of any socioeconomic programmes

This disconnect undermines development at the grassroots level, impacting rural infrastructure, health, and education. 

41%

of residents believe they get value for taxes paid.

Survey Respondent Overview

Gender

Age Distribution

Employment

Top LGAs Represented

Ife East (13%), Ifelodun (13%), Obokun (13%)

Citizens’ Recommendations - What the People Want

123 survey respondents comprising both residents and indigenous people highlighted the following key demands

  • Employment Generation and Skills Training:

    Residents urged the state government to create more job opportunities for graduates, artisans, and traders, and expand vocational training initiatives across LGAs.

  • Improve Quality and Affordability of Health and Education Services: Citizens requested the upgrade of public hospitals and schools, including the provision of essential drugs, learning materials, and qualified personnel. Affordability and equitable access were also emphasised.
  • Infrastructure Development and Maintenance: Respondents called for better road networks, improved electricity distribution, and clean water supply, particularly in rural communities. They urged the government to complete abandoned projects and ensure quality control in new constructions.
  • Government Accountability and Transparency: There were calls for more openness in government activities. Citizens requested timely updates on budget implementation, project execution, and greater inclusion in governance.
  • Support for Small Businesses and Local Industries: Citizens recommended targeted support for local enterprises through loans, capacity building, and market access facilitation. Special attention was requested for women and youth-led businesses.

pSPI Recommendations - Data-Driven Path Forward

For Oyo to fully leverage its position as a “Pace Setter,” pSPI recommends:

  • Strengthen IGR Performance through Innovation and Inclusion: While Oyo performs moderately in Internally Generated Revenue (IGR), the state should diversify its revenue streams by leveraging the informal economy, land and property taxes, and technology based solutions. Simplifying tax collection and offering incentives to small businesses can further boost compliance.
  • Enhance Health and Education Infrastructure: Prioritise capital investment in public hospitals and schools, especially in underserved rural areas. Recruitment and welfare of health workers and teachers should be improved to ensure quality service delivery.
  • Expand Economic Opportunities for Youth and SMEs: Accelerate the implementation of
    job creation programmes targeting young people. Scale up skill acquisition centres, agricultural entrepreneurship schemes, and business development support services.
  • Improve Local Government Effectiveness: Strengthen the capacity of local government areas (LGAs) to deliver on grassroots development. Encourage transparency and citizen feedback on ongoing projects and programmes at the LGA level.
  • Maintain and Upgrade Key Infrastructure: Road infrastructure, clean water access, and public transportation require sustained investment. Establish periodic maintenance frameworks to improve longevity and reduce long-term costs.

Oyo State 2025

a pacesetter with potential, held back by infrastructure gaps & local government weakness. Closing these gaps will unlock Oyo’s full economic and social potential.