Africa
Osun IGR: The Numbers Shut Up Naysayers -By Sarafa Ibrahim
Looking at the numbers, it is too big to be real. But it is actually real. And to understand what happened, take a pause and observe the policy direction and institutional reforms undertaken in the last two years by the Adeleke administration will provide a clear understanding on how the growth in the state’s IGR was achieved.
Sometime in 2023, a former media aide to ex-Governor Gboyega Oyetola, Mr Ismail Omipidan tried to spin away the reality of the incredible turnaround that the finances of Osun state has undergone under the leadership of Governor Ademola Adeleke. Typical of his ways of seeing doom where progress is quite visible, Mr. Omipidan obviously choose to play politics with numbers in a piece he authored then by erroneously inferring that Internally Generated Revenue (IGR) of the state for the 2023 fiscal year fell short of what was inherited.
This similar line was echoed by Senator Ajibola Basiru, the National Secretary of the All Progressives Congress (APC) in January this year when he concluded that Osun IGR is ‘alarming low’ under Governor Adeleke. Just like Mr. Omipidan, Senator Basiru tried to create an impression of regression, whereas the reality of things in Osun was that of progress and cheering promise of prosperity.
What, I believe, both of them missed, was the fact that numbers don’t surrender to politics because they don’t lie. From the records, Osun IGR in 2022 when Governor Adeleke assumed office was N24.7 billion and by the end of the 2023 fiscal year, it has grown to N27.72 billion, representing a 13.28 percent increase. That was a progress that never happened under the supposed ‘encyclopedia of finance’ throughout his four years time in office as the biggest growth in internal revenue recorded was a 12.24 percent in 2019 fiscal year.
Things got even more better in the 2024 fiscal year as Osun realized a staggering N54.7 billion revenue internally, representing an incredible 97.31 percent increase. That is an exponential growth and even worst of critics of Governor cannot but accept that they have been wrong about him, after all.
Looking at the numbers, it is too big to be real. But it is actually real. And to understand what happened, take a pause and observe the policy direction and institutional reforms undertaken in the last two years by the Adeleke administration will provide a clear understanding on how the growth in the state’s IGR was achieved.
Since he assumed office, Governor Adeleke has not left anyone in doubt about his resolve to improve the state’s IGR without burdening the people with additional tax. At first, cynics or perhaps, naysayers raises doubt on such possibility, wondering how can IGR grow without putting the burden on the people.
Governor Adeleke, however, believe it is possible, and in January 2023, outlined his plan to reform “several sectors to block revenue leakages and stop diversion of state assets” aimed at re-engineering the financial system of the state. This led to the introduction of tax harmonisation system and digitalisation of revenue collection; blockage of revenue leakages; expansion of revenue sources and enforcing compliance.
And, as we can all tell now, it appears the problem is leakages and blocking it has churned out more money for Osun than imagined. The interesting thing here is that the reforms carried out by Governor Adeleke eliminated, to a large extent, the unwholesome practice of double taxation that frustrate businesses. As much as Osun internal revenue grows, businesses in the state are saved the dilemma of paying multiple taxes as it was the practice in the past with the harmonised taxation system.
Such a shift is beneficial to the economy, meaning that businesses will fare better and enable growths. That is because harmonising taxes, in general, free-up funds from excessive taxation that hurts businesses and contribute to high cost of living that is associated with high price of goods and services. This is a cheering development because it signal to investors out there that Osun is for business growth and not otherwise.
From all indications, Osun has taken the leap for remarkable progress and the future looks rosy. Not just the finances of Osun is receiving life under Governor Adeleke, critical infrastructures that will engender prosperity for now and the future are being brought alive. Governor Adeleke promised to take Osun out of the abyss of ruins and set it on the path of enviable progress, and he is doing just that.
If the achievement in the state’s IGR is telling us anything, it is that Osun is in the right hand and that the progress we are seeing across sectors, including the finances of the state, will not be stopping anytime soon. In fact, the IGR figure for Osun this year may likely outclass what was realized in the 2024 fiscal year as the Q2 financial report recently released showed the state has earned a whooping N30bn in just six months from internal sources.
On the whole, automated revenue collection is driving financial growth of the state. When it was initiated, naysayers argued it would not make any much difference. But that is not the case at the moment, as not only did it ensure convenience and swiftness in payments, but also deepens transparency in revenue collections. The result is a significant growth in revenue generation, which has an absolute advantage that guarantees a healthy financial condition for the state.
•Sarafa Ibrahim is a Special Assistant to the Osun State Governor on Print Media and writes from Osogbo, Osun state.
Continue Reading
You must be logged in to post a comment Login