Here’s a quick rundown of what we’ll cover:
- APM’s scathing critique of Adeleke’s VAT record.
- PDP’s fiery response, defending the governor’s economic policies.
- A look at Osun State’s economic challenges and potential solutions.
- Expert analysis on the state’s fiscal performance compared to its neighbors.
VAT Verdict: Is Osun State Falling Behind?
The APM is not holding back. They claim that Osun State’s VAT performance is dismal, especially when compared to other states in the South West region. According to recent statistics, Osun generated a mere N5.95 billion in VAT revenue between January and March 2025. The APM chairman, Adewale Adebayo, points out the governor is relying way too much on federal handouts.
But here’s the kicker: Osun actually received a higher allocation (N21.23 billion) than Ekiti State (N19.63 billion). The APM says this shows a “chronic lack of productivity and innovation in economic governance” under Adeleke.
PDP’s Counterattack: Witch-Hunt or Fair Criticism?
The Peoples Democratic Party (PDP) isn’t taking these accusations lying down. PDP spokesman, Oladele Bamiji, dismisses the APM’s claims as a politically motivated witch-hunt. He argues that comparing Osun to economic powerhouses like Lagos is unfair and deliberately misleading.
Bamiji also reminds everyone that Governor Adeleke inherited a struggling economy in 2022, burdened by debt and neglected infrastructure. He insists that the current administration is working hard to turn things around by focusing on small businesses, agriculture, and digital entrepreneurship.
The Bigger Picture: Osun’s Economic Reality
Osun State’s economic challenges are no secret. The state has historically struggled with low internally generated revenue (IGR) and has been heavily dependent on federal allocations. This reliance makes it vulnerable to fluctuations in the national economy.
Key Challenges Facing Osun’s Economy:
- Over-reliance on Federal Allocations: Reduces the incentive to develop local revenue streams.
- High Debt Burden: Limits the state’s ability to invest in critical infrastructure and development projects.
- Underdeveloped Industrial Sector: Hinders job creation and economic diversification.
- Inadequate Infrastructure: Affects business growth and investment.
The Path Forward: What Can Be Done?
So, what’s the solution? How can Osun State boost its VAT revenue and achieve sustainable economic growth?
Potential Strategies for Economic Growth:
- Diversify the Economy: Invest in sectors beyond agriculture, such as tourism and technology.
- Improve Infrastructure: Upgrade roads, power supply, and communication networks to attract investment.
- Support Small Businesses: Provide access to funding, training, and mentorship for SMEs.
- Enhance Revenue Collection: Implement efficient tax collection systems and reduce tax evasion.
- Attract Foreign Investment: Create a business-friendly environment to attract foreign investors.
Osun State’s VAT controversy highlights the urgent need for sustainable economic strategies. While the APM and PDP trade blows, the real challenge is to create a thriving economy that benefits all citizens of Osun State. The focus should be on long-term solutions rather than political point-scoring.
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