Ogun State has achieved a remarkable increase in its internally generated revenue (IGR), doubling from ₦70 billion in 2019 to an impressive ₦147 billion in 2023.
This significant growth highlights the state’s transformation under the administration of Governor Dapo Abiodun, whose policies and financial reforms have driven this leap in revenue.
Ogun State’s current IGR is more than the combined earnings of all five states in Nigeria’s South East region, which collectively generated ₦142.95 billion.
It also outstrips the entire North East region, where six states raised ₦104.35 billion in IGR.
With a total IGR of ₦146.88 billion, Ogun State has solidified its position as an economic powerhouse among Nigerian states, showing steady growth that was once unimaginable.
Historically, Ogun was not among the top revenue-generating states.
In 2010, the state’s IGR was just ₦7.9 billion, ranking lower than some states in the South East like Ebonyi and Abia, which generated ₦13 billion and ₦11 billion, respectively.
At the time, Enugu, Anambra, and Imo states also had IGR figures that were competitive with Ogun.
Fast forward to 2023, Ogun’s revenue now dwarfs those figures.
According to analysts, Ogun’s success in driving up its IGR is rooted in policies that encourage investment and enhance the state’s tax collection mechanisms.
The state has invested in digital systems for tax collection, reduced bureaucratic bottlenecks, and worked to attract new businesses that contribute significantly to state revenue.
This rapid growth is a testament to the focus on fiscal re-engineering that began around 14 years ago, reshaping Ogun from a modest revenue earner to a regional leader.
Governor Dapo Abiodun’s administration, which took office in 2019, has been a major force behind Ogun’s recent revenue rise.
Abiodun’s team has aggressively pursued policies aimed at expanding the tax net, streamlining processes for business operations, and promoting investments.
They have also implemented programs aimed at cutting costs, maximizing efficiency, and fostering transparency in the revenue collection system.
The governor has previously spoken about the importance of a stable and growing IGR base for Ogun’s development, especially as the state seeks to reduce dependence on federal allocations.
“An IGR that grows at this rate shows that we are moving in the right direction,” Abiodun said recently. “Our administration has focused on building a self-sustaining economy that can support the development aspirations of our people.”
Observers note that the state’s digital tax collection system has been particularly effective.
This system simplifies the process for taxpayers and reduces corruption, ensuring that more funds go directly to the state’s coffers.
Financial experts argue that Ogun’s IGR success can serve as a model for other Nigerian states struggling to boost their own revenue.
By focusing on ease of doing business and making tax payments more efficient, states can create a stable income source that fuels their development plans.
Bayo Ogundele, an economist based in Lagos, commented on Ogun’s progress, stating, “Ogun State’s leap in revenue shows the importance of strategic planning and governance. What Ogun has achieved is not by accident but by consistent policies aimed at revenue growth.”
He added that the state’s approach could help other states struggling with low IGR to learn from Ogun’s example.
The sharp rise in Ogun’s IGR has also sparked conversations about the financial standing of other Nigerian regions.
With a higher IGR than the combined total of the South East and North East regions, Ogun has shown that state-driven revenue can be a powerful tool for development.