How Oyo State's Record ₦892 Billion Budget Is Reshaping Ibadan's Land Market in 2026

Oyo State just signed the largest budget in its history. For anyone watching Ibadan's real estate market, the numbers tell a clear story: this government is building infrastructure at a pace the city has never seen, and land prices are responding. Here is what the data shows and where the opportunity sits for buyers in 2026.

A Budget Built for Infrastructure

On December 23, 2025, Governor Seyi Makinde signed Oyo State's ₦892 billion 2026 budget into law. Tagged the "Budget of Economic Expansion," it allocates ₦210 billion to infrastructure, a 23.55% share of total spending. Capital expenditure accounts for ₦502.8 billion, or 56.7% of the total.

This is not a one-off spike. Oyo State's budget has grown from ₦434 billion in 2024 to ₦684 billion in 2025 and now ₦892 billion in 2026. The revenue base has followed suit: monthly internally generated revenue (IGR) surged from ₦1.7 billion when the current administration took office in 2019 to ₦8.7 billion by mid-2025, according to state government data. Full-year IGR hit a record ₦103 billion in 2025.

For land buyers, this matters. Government infrastructure spending is the single most reliable predictor of real estate value growth in emerging Nigerian markets. And Ibadan, with a metro population of 4.3 million and a GDP of $29 billion (PPP), is no longer an "emerging" market by any reasonable measure. It is Nigeria's third-largest city and, according to the United Nations, one of the fastest-growing cities in sub-Saharan Africa.

Five Infrastructure Projects Driving Land Prices

1. The Ibadan Circular Road (₦235 Billion, 110 km)

The Rashidi Ladoja Circular Road is the marquee project. The 32.2 km South-East Wing, running from the Lagos-Ibadan Expressway to Badeku Village on the Ibadan-Ile-Ife Expressway, is nearing completion. The state government has approved ₦235 billion for the second lot covering 39 kilometres, with plans to complete it within 18 months.

The impact on land values is already measurable. Properties along the Circular Road corridor in areas like Ajia and Ologuneru have appreciated by 40% in the past 12 months. A 2,616-hectare mixed-use urban district is planned along the expressway for logistics, housing, and commercial expansion.

2. Samuel Ladoke Akintola International Airport Upgrade

Ibadan's airport is undergoing a serious transformation. The runway is being extended from 2,400 m to 3,000 m and widened from 45 m to 60 m to accommodate wide-body aircraft. A new international terminal with a 1,000,000-passenger annual capacity is under construction, with international flight operations targeted for 2026.

An international airport changes the economics of a city. It opens Ibadan directly to diaspora investment, cargo logistics, and business travel. For the land market, areas within a 30-minute drive of the airport are likely to see accelerated demand once commercial flights begin.

3. Lagos-Ibadan Railway Ridership Boom

The standard-gauge Lagos-Ibadan railway carried 690,169 passengers between January and August 2025, with monthly ridership growing 37% over that period. The 2026 federal budget includes funds for 12 additional station buildings along the route.

The railway cuts travel time between Lagos and Ibadan to under three hours, making Ibadan a realistic commuter option for Lagos-based workers. Freight traffic of 382,340 tonnes hauled in the same period signals growing commercial activity that fuels demand for warehousing and logistics land.

4. Ilu-Tuntun Smart City

Located in Akinyele Local Government Area, this project is designed to decongest the Ibadan core by creating a modern urban hub with smart infrastructure, innovation-driven enterprise zones, and residential neighbourhoods. Road clearance is underway, with a 150-metre setback in built-up areas and a 500-metre corridor in greenfield zones. This is a long-term play, but early positioning in the corridor could pay off significantly.

5. Urban Transport Modernisation

Two modern central bus terminals at Iwo Road were commissioned in November 2025, joining terminals at Challenge, Ojoo, and New Ife Road. This transport network upgrade improves intercity connectivity and signals that the state is building for a larger, more mobile population.

What the Numbers Say About Ibadan Land Prices Right Now

Ibadan's land market spans a wide range, based on current listings on Nigeria Property Centre and PropertyPro:

Premium locations (Bodija, Jericho GRA, Ikolaba): ₦40 million to ₦150 million per standard 500 sqm plot. These are established high-net-worth areas with limited new supply.

Upper-mid locations (Oluyole Estate, Ring Road, Challenge): ₦17 million to ₦55 million per plot. Strong demand from professionals and established businesses.

Mid-range locations (Akobo, Ologuneru, Eleyele): ₦4 million to ₦18 million per plot. Akobo has seen prices triple from ₦4-5 million to ₦12-18 million in roughly three years.

Budget locations (Moniya, Ido, Apata estates): ₦1 million to ₦5.5 million per plot. Moniya prices have doubled in under three years. Estates along the Moniya-Iseyin Expressway offer 500 sqm plots starting from under ₦1 million.

The average annual price growth across prime Ibadan areas sits between 12% and 18%, according to market analysis by NaijaEstate. Land near the Lagos-Ibadan Expressway corridor grew 10-15% in 2024 alone.

Where the Value Is Heading in 2026

Not all areas are growing at the same rate. Based on infrastructure alignment and current price trajectories, four corridors stand out:

Moniya-Iseyin Expressway: This is Ibadan's most active growth frontier. The corridor benefits from proximity to the Ibadan Inland Dry Port site (a ₦43.24 billion project with 80,000 TEU capacity), the railway station at Moniya, and relatively low entry prices. Land Republic operates its Premier City estates along this corridor, with plots starting from ₦540,000 per 500 sqm.

Circular Road Corridor: Properties near the completed and under-construction sections are seeing the fastest appreciation. The planned 2,616-hectare urban district will concentrate logistics and commercial activity, lifting surrounding residential values.

Ido-Eruwa Road: This western corridor links to the University of Ibadan axis and offers mid-range pricing with strong appreciation potential. Proximity to educational institutions creates consistent rental and resale demand.

Akala Express and Challenge: Already a commercial hub, this area benefits from the new bus terminal infrastructure and improved road networks. Entry prices are higher, but value retention is strong.

Why Ibadan's Investment Case Is Stronger Than Most Nigerian Markets

Three structural factors separate Ibadan from typical secondary markets:

Scale: With 4.3 million people, Ibadan is Nigeria's third-largest metro area and the largest city by land area at 3,080 sq km. It is projected to reach 5.6 million by 2033 and 8.7 million by 2050. A population growing at this rate creates sustained, long-term demand for land.

Affordability gap: A standard plot in Lekki, Lagos starts at ₦15 million and can exceed ₦100 million. In Ibadan's growth corridors, the same money buys 10 to 30 plots. The Lagos-Ibadan railway has made this price difference actionable for workers, retirees, and investors who want to own property without the Lagos premium.

Sectoral tailwinds: Nigeria's real estate sector now contributes 10.7% to GDP, overtaking crude petroleum to become the third-largest sector in the economy behind crop production and trade. The national housing deficit exceeds 17 million units, according to the National Bureau of Statistics. These macro forces channel demand toward affordable, infrastructure-rich markets. Ibadan fits that description precisely.

What Smart Buyers Should Do Right Now

Ibadan's land market in 2026 rewards buyers who move before infrastructure completion, not after. The Circular Road, the airport upgrade, and the Inland Dry Port are all in mid-construction. History in Nigerian real estate shows that the sharpest price increases happen between groundbreaking and commissioning.

If you are considering a position in this market, focus on estates with verified title documentation, clear payment structures, and proximity to the infrastructure corridors outlined above. Land Republic operates several estates across Ibadan's high-growth zones, including Premier City (Moniya-Iseyin Expressway), The Pearl Residence (Ido), Ariya Springs, and Ilu Ayo, with plots starting from ₦540,000.

To explore available properties, pricing, and flexible payment plans, visit landrepublic.co/properties or call +234 812 222 2283 to speak with a property advisor.