The Oyo State Government has clarified why Governor Seyi Makinde did not make a public announcement about the receipt of a N30bn intervention fund from the Federal Government following the January 2024 Bodija explosion.
According to the state, special intervention funds are treated as capital grants and must pass through formal budgeting procedures, making public declarations unnecessary at the point of receipt.
This clarification was contained in a statement released on Thursday, the 1st of January, 2026, by the Commissioner for Information, Prince Dotun Oyelade.
He revealed that the N30bn disbursed by the Federal Government in November 2024 is still intact and lodged in a dedicated account, as the state is awaiting the release of the remaining N20bn balance from the N50bn earlier approved for the reconstruction of Old Bodija and surrounding areas.
The explanation followed comments by a former Ekiti State governor, Ayodele Fayose, who disclosed that the Federal Government had provided intervention funds to Governor Makinde for victims of the explosion. Fayose, during a television interview, challenged the governor to explain how the N50bn allegedly released by the Federal Government was utilised.
Reacting through his media aide, Sulaimon Olanrewaju, Governor Makinde confirmed that although N50bn was approved, only N30bn had so far been released.
Further elaborating on the issue, Oyelade said the released funds remain untouched in the Oyo State Government Infrastructure Support Account (No. 2045199879) domiciled with FirstBank of Nigeria. He added that the state intentionally refrained from accessing the money because the outstanding N20bn has been withheld by relevant federal agencies without explanation.
“Out of the approved N50bn, the Federal Government, through the Central Bank of Nigeria, released N30bn to Oyo State on November 4, 2024.
“As of Thursday, December 31, 2025, the N30bn remained untouched in the Oyo State infrastructure account with the First Bank. Interested members of the public may verify this information with the bank.
“The Oyo State government has deliberately refrained from utilising the N30bn already released in recognition of the fact that the remaining N20bn has remained withheld by the relevant federal agencies for reasons that have not been communicated to the state.
“Given the disgraceful drama of the last couple of days from the Federal Government on the approval, the government of Oyo State is convinced on the wisdom of its decision to ‘wait and see’ before deciding what to do with the money.
“Almost two years after the disaster, the Federal Government is yet to release the outstanding balance of N20bn from the approved sum of N50bn.
“The Oyo State government remains committed to securing the balance of the approved funds to comprehensively address the damage caused by the explosion to both public and private properties. This is particularly important given the scale of the challenges faced by the state and the victims, many of whom have already been supported within the financial capacity of the state government,” Oyelade said.
Providing context, the government recalled that following the 16th of January, 2024 explosion in Bodija, Governor Makinde wrote to President Bola Tinubu on the 19th of January, 2024, seeking federal assistance to manage the disaster.
In the correspondence, the governor detailed immediate steps taken by the state, including search-and-rescue efforts, deployment of heavy equipment, hospital treatment for victims at state expense, provision of ambulances and medical personnel, and temporary accommodation for displaced residents.
He also highlighted areas requiring federal support, such as debris evacuation, structural integrity tests, demolition of unsafe buildings, compensation to affected residents, reconstruction of Old Bodija and adjoining communities, expansion of emergency response infrastructure, environmental assessments, logistics, and broader infrastructural repairs.
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“To address these needs, the Oyo State government estimated the cost of intervention at N100bn and requested the President’s approval for that amount. The president, however, approved N50bn half of the requested sum.
“The purpose of the approved fund was clearly stated by the Federal Government as ‘Support for the reconstruction of Old Bodija and environs after the Bodija explosion’. (See memo dated 29 August, 2024, from the Accountant General of the Federation to the Minister of Finance, released by the political agent of the Federal Government, Mr. Ayo Fayose),” he said.
The government noted that the federal intervention arrived nearly a year after the incident, stressing that it did not wait for the funds before acting.
“The state government did not wait for federal intervention, which came in November, 2024, almost a year after the incident. As of today January 1, 2026, the Oyo State government has spent N24.6bn from its own resources on Bodija and its environs in direct response to the explosion and its consequences. This includes N20.1bn spent on the reconstruction of infrastructure in Bodija and surrounding areas, as well as N4bn paid as support and compensation to victims of the explosion. These expenditures were fully borne by the Oyo State Government.
“Documents released by the Federal Government through its agent, Mr Ayo Fayose, indicate that a total of N915.5bn was approved as intervention funds for states across the country. The list of beneficiary states shows that one South-West state received N150bn, while another received N50bn. Oyo State, despite experiencing one of the most devastating incidents, received one of the lowest allocations among beneficiary states. Interested members of the public may consult the list for verification.
“Special intervention funds, when released, are received as capital grants. In line with standard practice and legal requirements, such funds are subjected to the budgeting process before expenditure and are duly reflected in the financial statements of the state. They do not require special public announcements upon receipt. This explains why other states that received significantly larger amounts did not publicly advertise the receipt of such funds.”
The state government maintained that it has “nothing to hide and will continue to engage the public transparently on all issues, including this one.”
It also expressed appreciation to residents for their patience, while accusing “desperate political actors” of attempting to exploit the Bodija tragedy for “personal and political gains” and an “undeserved foothold in our state.”