In 1987, Governor Adetunji Olurin, the Military Governor of Oyo State, received a request from the Polytechnic, Ibadan's Governing Council to establish a State University.

In 1988, he formed a seven-member interministerial committee, chaired by Mrs. Oyinkan Ayoola, which recommended the university's creation. On 13 March 1990, Nigeria's federal military government approved the State's request. The edict establishing Oyo State University of Technology was signed on 23 April 1990, by Colonel Sasaenia Oresanya.

Olusegun Ladimeji Oke served as the inaugural Vice-Chancellor of the university, and in January 1991, Late Bashorun M.K.O. Abiola assumed the role of the first Chancellor. The university commenced its initial academic session on 19 October 1990, with 436 enrolled students across four faculties namely:

- Agricultural Science
- Environmental Science
- Engineering and Management Science
- Pure and Applied Science

A College of Health Sciences was established a year later.

Following the separation of Osun State from Oyo State, the university's name was changed to Ladoke Akintola University of Technology.