Oyo State governor, ‘Seyi Makinde, has been lauded for the impact of his administration on the Internally Generated Revenue fortunes of the state since he assumed office in 2019, with the state currently ranked among the top 10 states in total revenue generation.
Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, gave this commendation in Ibadan, on Monday, at the opening ceremony of the 157th Meeting of the Joint Tax Board, comprising players in the tax sector at the state and national levels.
Adedeji, who is the chairman of the Joint Tax Board, commended the governor for growing Oyo State’s revenue profile by 145.5 per cent since he assumed office in 2019, adding that the state recorded an IGR performance of N65.28 billion in 2024, a figure, which he noted, reflected 23.7 per cent growth over the 2023 collection.
The FIRS boss equally lauded Governor Makinde’s infrastructure development strides, just as he acknowledged the “significant milestones” made across other sectors such as education, health, trade and investments, among others.
While declaring open the meeting with the theme “Taxation of the Informal Sector, Potentials and Challenges,”
Governor Makinde said that the state’s massive improvement was a function of his administration’s decision to ensure that its people are productive and taking concrete steps to bring more people into the tax net without burdening them.
The governor added that his government has been committed to improving and strengthening the capacity of the Oyo State Revenue Service to manage compliance to taxation with empathy and fairness, noting that the state has also engaged in mass tax education and put in place simplified processes to make tax payment easy.
He called for effective and inclusive solutions to Nigeria’s tax challenges, particularly in addressing the informal sector and improving the system, stating that for the country to break the poverty barrier and record increased economic prosperity, it must rely less on natural resources and move towards mobilising its people to be productive and to possess knowledge, skills and engage in intensive productivity.
He said: “This gathering is not only timely, it also aligns with the real work we are currently doing in Oyo State and, of course, Nigeria, to improve the tax system, especially as you are trying to find a solution to the informal sector.
“You are all here with diverse experiences and can sit down and talk, find out what is the best path forward. How do you balance your identified challenges and also how can you move forward?
“I have heard people talk about Nigeria not having any reason or need to have any challenge with poverty, because this is a rich country. Yes, we are rich in natural resources but it is a poor country, because economic prosperity cannot be based solely on your natural resources.
“For you to have economic prosperity, you must ensure that you go out there, mobilise the people. You must have knowledge, skills and intensive production. That is when you can move to economic prosperity.
“We have quite a bit of work to do to move away from federal allocation to generating incomes, having productivity at the local level.
“So, in Oyo State, we are not just talking about expanding the tax net, we are actively ensuring that people are productive and the people are moving the revenue base of the country forward.
“We recognise that the informal sector is made up of traders, artisans, commercial drivers and small businesses, which form the backbone of our local economy. This segment has now become a focus of strategic action.
“We have taken concrete steps to bring more people into the tax net without burdening them unnecessarily. Our initiatives include mass tax education where you let people know your service but you have to find a way to pay for it.
“Also, there are simplified processes where you can stay in the corner of your business premises and pay your taxes.
“We also have incentive compliance where we encourage people to have voluntary tax payment for benefits such as access to empowerment schemes and credit facilities.
“So, we know we have a lot to do and that is why I am particularly hopeful about the outcome of this meeting.
“In the next two days, I look forward to hearing about further proven methods of capturing revenue from a highly mobile population and how to track informal businesses and how that would work side by side with formalisation in the informal sector.”
Adelabu stated that Governor Makinde has shown keen awareness in identifying the huge potentials of the informal sector and its ability to drive economic growth, saying: “Your time in office has, undoubtedly, been impactful. Your administration has made significant strides in urban renewal housing, road infrastructure.
“While significant milestones have been made in other sectors such as education, healthcare, transportation, housing, trade and investment etc, it is interesting to note that the government of Oyo State is also concerned with socioeconomic growth, especially at the grassroots.
“We wish to acknowledge the impact your administration is having on the IGR fortunes of the State. Oyo State is currently ranked among the top ten states in total revenue generated, with a 2024 IGR performance of N65.28 billion.
This figure reflects a growth of 23.78 per cent over the 2023 collection.
“Your administration’s impact on IGR can be better appreciated when we consider that you have grown the revenue profile by 145.5 per cent, since your assumption of office in 2019.”
Adedeji equally tasked stakeholders at the meeting to deliberate on how to formalise the operations of the market men and women so that they can be fixed into the tax system and equally use data to formalise the informal sector.
Earlier in his welcome address, the Executive Chairman, Oyo State Internal Revenue Service, Mr Femi Awakan, said the meeting would address tax-related matters, evolve a workable, effective and efficient tax system across the states, as well as find amicable solutions to challenges of tax jurisdiction, among others.
He noted that with the leadership and direction of Governor Makinde, the Oyo State Internal Revenue Service was able to expand the tax net and improve revenue by introducing the right approaches and measures.
Awakan mentioned that through consistent and conscientious handling of tax matters in the state, the Oyo State IGR increased from an average of N1.6 billion monthly in 2019 to an average of N8.5 billion monthly in the first quarter of 2025 and that using the 2021 annual revenue as a benchmark, it equally recorded a 58 per cent increase as of 31 December 2024.
In his vote of thanks, the Secretary, Joint Tax Board, Mr Olusegun Adesokan, also appreciated the governor for various investments in the state, adding that they are legacies that would outlast his administration.
On the governor’s entourage were the chairman, House Committee on Finance, Hon Sunkanmi Babalola; Chief of Staff, Otunba Segun Ogunwuyi; Head of Service, Mrs Olubunmi Oni, mni; Commissioner for Finance, Mr Akinola Ojo and the Attorney-General/Commissioner for Justice, Barr. Biodun Aikomo.
Others were the Senior Executive Assistant to the Governor on General Duties, Chief Bayo Lawal; Executive Adviser, Budget and Finance, Alhaji Gafar Bello; and Executive Assistant on Rule of Law, CP Ayodele Sonubi (retd).
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