Efficient stimulation of the economy has been attributed to the brilliant performance of Oyo State in Value Added Tax (VAT) contribution.
The State Commissioner for Information and Orientation, Prince Dotun Oyelade, said this while featuring on a Splash FM radio station programme.
He said that the reason Oyo State came third in contribution to VAT among the 36 States of the federation and the FCT is because the right stimulus is being deployed to trigger the economic potential of the State.
With no seaports to beef up its economy and a paltry ₦5 billion monthly Internally Generated Revenue (IGR) to Lagos’ ₦65 billion, many analysts were surprised that Oyo State can still rank third in contribution to VAT.
But Prince Oyelade explains:
“Governor Seyi Makinde stimulates the economy by pumping ₦6.4 billion into the State economy on the 25th day of every month for almost five years, which culminates in over ₦77 billion every year to the State workforce.
“Of course, that figure has changed this January 2025, with the payment of ₦80,000 minimum wage, resulting in ₦12 billion per month and ₦143 billion annually.
“The consistency of these salaries and wages not only allows the over 130,000 government workers (the largest government workforce in the South West) to plan their lives, it also allows farmers and produce buyers to bring their foodstuffs to the markets on good roads and with sufficient confidence that they will sell out their goods.
“The sheer consistency of salary payments on a given day has upgraded kátàkárà and opened up patronages for artisans of different persuasions.”
The commissioner for Information also said that the increase in Real sector and Hospitality businesses that has attracted an influx of investors into Oyo State is also stimulating the economy.
He recalled that between May 2019 and May 2024, hospitality centres in Oyo State increased from 1,424 to 5,342, which represents a 221% rise.
Prince Oyelade noted that Investors apart, the surge of families who are resettling in Oyo State as a result of better infrastructure, space, good roads and affordable standard of living are also impacting on the stimulation of the economy of the State.
In the VAT 2024 Release, the South-West contributed the largest amount of ₦3.11 trillion in VAT to the federation while the South South came second with ₦1.08 trillion.
Of the ₦3.11 trillion contributed by the South-West, Oyo State contributed ₦272.41 billion.
