Ibadan Circular Road Compensation: Oyo Pays ₦4.6bn, Fixes 75-Metre Setback — What Every Landowner and Buyer Must Know

Payment alerts started landing on Friday night. We break down the money, the new setback line, how we got here, and what it means for anyone who owns or wants land in Ibadan.

By DEVALOP News Desk · 30 October 2026 · 6-minute read

IBADAN, Oyo State — After months of worry, radio phone-ins and endless WhatsApp voice notes, property owners along the Senator Rashidi Ladoja Circular Road finally have two things they can hold on to: money in their accounts and a clear line on the map.

Governor Seyi Makinde on Friday, 30 October 2026, approved ₦4.6 billion as the first tranche of compensation for people whose land and buildings were taken over by the Ibadan Circular Road project. At the same meeting with affected owners on the corridor, he confirmed that the setback in built-up areas now stands at 75 metres on each side of the road, down from the much wider acquisition residents had protested for months.

At DEVALOP, we believe this is the most important property story in Ibadan this year. It touches thousands of families, it redraws the risk map for land buyers, and it will shape where the city grows for the next decade. Here is everything you need to know.

Key facts at a glance

• Amount: ₦4.6 billion, described by the governor as the first tranche of compensation.
• Who gets paid first: Property owners affected by Section One of the road, according to Tribune Online.
• How it is paid: Directly into beneficiaries’ bank accounts, with alerts from Friday night or Saturday morning.
• Setback in built-up areas: 75 metres on each side of the road.
• Setback on undeveloped land: 500 metres on both sides, as the governor stated earlier in October.
• Extra measure: The corridor will be fenced for safety.

How the ₦4.6bn compensation is being paid

Makinde told the owners that every step needed to release the money had already been completed before he arrived. There are no cheques to collect and no queue at the ministry this time; the funds go straight to the accounts captured during verification.

He said he wanted to meet the owners face to face before a single naira left the treasury, because he had personally promised that payment would start before the end of October. Friday was the last working day of the month, so the deadline was met with hours to spare.

The governor also warned residents not to be swayed by rumours or by people spreading false claims about the project. His message to the crowd was simple: this is your government, and it intends to finish what it started.

If you are expecting payment, keep an eye on the account you submitted during verification. Be careful with anyone who calls asking for a “processing fee” to speed things up. Compensation paid directly by government should not require you to pay a middleman.

Why the 75-metre setback is the real headline

For many Ibadan families, the setback matters even more than the money. A setback is the distance from a road within which you cannot build or keep structures. Your survey plan is the document that shows exactly where your plot sits against that line — we explain how to read one in our land survey plan explainer.

Under the new position, if your building sits more than 75 metres from the road on your side in a built-up area, you are outside the acquisition zone. In the governor’s words, owners in that position have no reason to panic and should carry on with their normal lives and businesses.

That is a big shift. According to the Oyo State Government’s own explainer, the original right of way, acquired under former Governor Rashidi Ladoja — the man who first conceived the project and after whom it is now named — was 75 metres on each side of the road. In 2017 the acquisition was widened to 500 metres on each side to fit the new Ibadan Master Plan. After protests, government first offered 150 metres in developed areas, but residents kept pushing for a return to the original 75 metres. In a Fresh FM interview on 11 October, Makinde promised that 75 metres for built-up areas would be gazetted. Friday’s meeting confirmed that position.

Undeveloped land is a different story. The government has said it will keep 500 metres on both sides of the road where land has not yet been built up. If you are holding raw land or farmland near the corridor, the relief on built-up areas does not automatically cover you.

From 2005 to 2026: how we got here

The Circular Road is one of the longest-running infrastructure stories in Oyo State. Here is the short version:

1. 2005–06 — The original right of way, 75 metres on each side of the road, is acquired under the Ladoja administration.
2. 2017 — The acquisition is widened to 500 metres on each side to align with the new Ibadan Master Plan.
3. 2024 — The state sets up a committee, chaired by CP Sunday Odukoya (rtd), to oversee compensation.
4. 2025 — The first payments go out to owners on the Ajota–Alaago axis. By April 2026, more than ₦800 million has been paid in the first phase.
5. April 2026 — The State Executive Council approves ₦5.813 billion for more than 900 property owners.
6. September 2026 — Deputy Governor Adebayo Lawal assures residents in Egbeda that everyone affected will be paid.
7. 11 October 2026 — Makinde promises a gazetted 75m setback for built-up areas and full payment before the month ends.
8. 30 October 2026 — ₦4.6 billion released and the 75m setback reaffirmed.

The completed road is planned to circle Ibadan over roughly 110 kilometres, linking major corridors that today force traffic through the city centre. To see which parts of Ibadan are growing fastest, read our guide to the best areas to buy land in Ibadan for long-term value and our look at Ibadan’s emerging new towns.

Is ₦4.6bn the full compensation?

No. The governor described it as a first tranche. Earlier in October he put the total due at roughly ₦6 billion to ₦6.7 billion, depending on which report you read. That leaves a balance still to be paid, and owners will be watching closely for the next batch.

We will update this story as soon as the next tranche is announced. Bookmark this page; we will keep it updated as the story develops.

What property owners said

The owners’ representatives — Mr. Ahmed Abiodun, Mr. Kayode Oyejobi, Mrs. Risikat Raji and Mrs. Banke Adeyanju — thanked the governor for both the immediate payment and the reduced setback. They said government had finally listened to their concerns and promised continued support for the project.

Tribune Online also reported that the owners hope every outstanding issue around the road will be settled before the current administration leaves office in 2027.

What this means for the Ibadan land market: our analysis

We have watched buyers stay away from parts of Egbeda, Ona Ara, Lagelu and Akinyele for months because nobody could say for sure where the acquisition line ran. Friday’s decision changes that.

Here is our read of the market:

• Clarity brings buyers back. Uncertainty kills land demand faster than high prices. With the 75m line confirmed for built-up areas, many plots that looked risky are now clearly outside the zone.
• Land just outside the line could appreciate. A completed ring road usually lifts values in the neighbourhoods it opens up. Expect interest to rise in estates and layouts sitting safely beyond the setback.
• Raw land still needs care. The 500m rule on undeveloped land means many cheap “roadside” plots remain inside the corridor. These are exactly the plots some sellers will push hardest.
• The gazette matters. Until the 75m setback is formally gazetted, treat it as government policy rather than settled law.

Our advice has not changed: never pay for land near a government project until it has been verified. That means a charting search at the Oyo State Ministry of Lands, a check of the survey plan against the road corridor, and a title review. We walk through how land moves from verification to building in our Oyo State property development process guide, and how to pick a trustworthy partner in how to choose a real estate company in Nigeria.

For the numbers behind Ibadan land appreciation, see our 2026 investment returns and rental yields report. If you want a plot in a structured estate on one of Ibadan’s growth corridors, start with our Cedar Court Estate, Elenusonso guide. Investors abroad should read our diaspora real estate investment guide, and anyone who wants to own land without carrying the risk alone can ask about the DEVALOP Investment Club, where members co-own verified plots with good title.

Frequently asked questions

Related reading from DEVALOP

• Best areas to buy land in Ibadan for long-term value
• Land survey plan explained
• Oyo State property development process: step-by-step guide
• How to choose a real estate company in Nigeria
• Real estate investment returns and rental yields in Nigeria, 2026
• Emerging Ibadan cities
• The ultimate Africa/Nigeria real estate investment guide

This report is by the DEVALOP News Desk in Ibadan. DEVALOP helps land buyers secure genuine properties with good title through investigation and verification. Talk to us on +234 810-343-5367 or @Devalopltd.

DEVALOP advisory: buying land near the Ibadan Circular Road

Place this as a boxed panel at the end of the article. The setback news is good for the market, but it does not make every plot near the road safe to buy.

What changed, in one line: built-up areas = 75 metres on each side of the road; undeveloped land = 500 metres on each side, as reported.

Before you pay for any plot near the corridor, check these five things:

1. Measure the plot’s distance from the road. Ask for the survey plan and confirm where it sits against the 75m or 500m line. A seller saying “it’s far from the road” is not proof.
2. Confirm the area is classed as built-up. The 75m relief applies to built-up areas. Raw or farmland plots may still fall within the 500m zone.
3. Run a charting search at the Oyo State Ministry of Lands. This shows whether the land is under government acquisition, including the Circular Road corridor.
4. Watch for the gazette. The 75m setback was promised to be gazetted. Until the gazette is published, treat it as policy, not law, and keep your receipts and documents ready.
5. Be wary of “distress sales” on the corridor. Some sellers may try to offload land inside the acquisition zone. Land the government has acquired cannot be sold to you with good title.

DEVALOP’s view: Clarity on setbacks usually brings buyers back to an area. Land just outside the protected line along a finished ring road can appreciate well over time. But the gains go to buyers who verify first.

Thinking of buying land in Ibadan? DEVALOP investigates and verifies every property before you pay. Call +2348103435367 or message @Devalopltd.