The Oyo State Government has confirmed the payment of ₦5 billion out of the ₦8 billion agreed compensation to Osun State for the full ownership of Ladoke Akintola University of Technology (LAUTECH), Ogbomoso. This was disclosed by the state’s Commissioner for Information, Prince Dotun Oyelade, in a statement released on Monday.
According to Oyelade, the payment was in line with the 2020 agreement between both states, which officially transferred sole ownership of the institution to Oyo State. He explained that the state has been fulfilling its financial obligations steadily, committing ₦1 billion annually to the repayment plan, with the goal of completing the balance by the end of Governor Seyi Makinde’s administration in 2027.
“The total takeover amount agreed upon stood at ₦8 billion, and the Oyo state government has already paid ₦5 billion to Osun. We remain committed to completing the full payment before the end of this administration,” Oyelade stated.
The Commissioner recalled that the joint ownership arrangement, which began in the early 2000s, had been marred by tension and frequent disputes between the two states from 2007 to 2019. However, the impasse was peacefully resolved during Governor Makinde’s first term, culminating in a historic agreement signed on November 20, 2020.
He emphasized that since the resolution of ownership issues, LAUTECH has made significant academic and structural progress, positioning itself as the leading state university in the country. “The institution has grown in leaps and bounds. Beyond academic excellence, LAUTECH has expanded its reach and infrastructure,” he added.
One of the most notable developments is the creation of the LAUTECH Faculty of Agriculture and Natural Resources, Iseyin Campus, a strategic move to deepen agricultural education and rural development. The Iseyin campus, according to Oyelade, is gradually becoming a hub for agricultural research and innovation in Oyo State.
In a significant show of support for this expansion, Governor Makinde last Thursday approved the release of an additional ₦1 billion to Osun State as part of the LAUTECH agreement. On the same day, ₦650 million was also released as a take-off grant for the Teaching and Research Farm at the Iseyin campus.
“The Iseyin project is a cornerstone in our rural development and education strategy. With the take-off grant now released, we expect rapid development in the area of agricultural research and training,” Oyelade noted.
The government has also commenced simultaneous construction of health centres and road infrastructure within LAUTECH’s Iseyin campus, as well as at other institutions including the Abiola Ajimobi Technical University, Ibadan, and the Emmanuel Alayande University of Education, Oyo.
These infrastructural projects are part of the state’s broader agenda to elevate tertiary education standards and drive regional development. “We are building a sustainable education ecosystem that supports teaching, research, and community engagement,” the Commissioner stressed.
The Makinde administration’s handling of the LAUTECH ownership crisis has received widespread commendation for its diplomatic resolution of a long-standing inter-state conflict. Stakeholders across the education sector have lauded the move as a win-win for both states, setting a precedent for conflict resolution in Nigeria’s public institutions.
Observers have also praised the government’s investment in tertiary institutions across the state, particularly its rural campuses, which are expected to contribute to job creation, agricultural development, and youth empowerment.
