Ogun to raise IGR to N114.3bn from N105.67 in 2017

Ogun State Government said it has put measures in place to raise its internally generated revenue in 2017  to N114.34 billion from the N105.67 billion it projected  in 2016. But the state in 2013,  internally generated the sum of N13.77 billion, in 2014 N17.49 billion and in 2015 it was raised to a total of N34.59 billion.

At the end of the current fiscal year, the state would have generated about N51 billion. Similarly the state in 2013 got the sum of N56.8 billion from the federation account. This fell to N48.9 billion in 2014 and went further down to N34.3 billion in 2015. It is likely to fall further in 2016 making it imperative for the state to look inward.

The state revenue drive will enable it in 2017 to meet its financial obligations to its workers without recourse to the federation account allocation. The budget indicates that the state will pay a total of N62.73 billion as salaries, N11.2 billion as pension and gratuities giving a total personnel cost of N73.93 billion. The state overhead cost for the year will gulp N28.89 billion leading to a total recurrent expenditure of N102.62 billion.

This will be less than the projected N114 billion internally generated revenue of the state. According to the state budget provisions,  the sum of N118.3 billion about 53.5 per cent of the total budget figure of N221.12 billion is earmarked for capital projects. The state has promised its citizens that it will complete all projects embarked upon by this administration before leaving office.

Ogun state Commissioner for Finance, Mr. Wale Oshinowo, in an interactive session with a select journalist in Abeokuta said already,  the strategy to fully realize the provisions of the 2017 budget in the state has started yielding result. He said the state government has implemented a Revenue Harmonisation Scheme that has helped to block leakages in Ministries, Departments and Agencies of government MDAs.

This, he said, has enabled the state to avoid multiple taxation of businesses between the state and the local government that has boosted the state revenue. Oshinowo said the state in 2017 will introduce new revenue lines to bolster the state internally generated revenue. Such new line of revenue include the Home Owners’ Charter in which over 600, 000 applications are being processed for reduced certificate of occupancy fee. This fee would not have been realized if the scheme was not introduced. He said the state will also embark on the – Land Use Act, which will enable the state to collect land use charge, a ground rent from companies and individual land owners in the state. PRESIDENT BUHARI RECEIVES OGUN GOV 2.

President Muhammadu Buhari (R) receives the Executive Governor of Ogun State Senator Ibikunle Amosun in his office at the State House in Abuja. (FILE) Oshinowo said there is huge financial potential for the state to realize its 2017 internally generated revenue projection. The state, the commissioner said, has already started to collect from Okada riders permits which in matter of nine months has yielded a revenue of almost N1billion. He said by the time the scheme is extended to other transportation means, the revenue base would have expanded and the state would have achieved a lot more. He however said that a number of Nigerians who live in Ogun State and work in Lagos needed to do two things to empower the state financially to cater for their infrastructural demand. He said those who live in the state and work in Lagos must let their employers know that they have to pay their income tax to Ogun State. He said this is what the residency rule stipulates. He also said that they should also make their every day purchases in Ogun to boost the state economy.

According to him most residents in the border towns of the state do their shopping in Lagos. He said by so doing, they are depriving the state where they live the needed revenue from sales tax that would enable the state build infrastructure. While presenting the budget to the house, the Governor, Senator Ibikunle Amosu, said: “the 2016 “Budget of Optimisation” was N200.20 billion with approved recurrent expenditure of N100.91billion representing 50.4 per cent of the budget, whilst the Capital Expenditure Budget was N99.29billion, representing 49.6 per cent. The approved revenue budget was N200.20 billion, with N105.67billion expected from IGR and N42 billion from the Federation Account. The Capital Receipts were expected to be N52.5billion.

As at 31st October, 2016, the overall budget performance was 56.2 per cent. In the last six years, we have made clear our commitment to the delivery of affordable and qualitative education. This has invariably led to a series of reforms and it is encouraging to see that our efforts have been yielding positive results.

For instance, the innovation of Termly Unified Examinations in our public primary and secondary schools as well as Government Science and Technical Colleges has greatly enhanced the standard of education in our schools such that enrolment is steadily rising as is the higher education potential of our learners.

“I am aware, however, that despite the significant annual investments in education, more still needs to be done to improve the quality of education. The global perspective in the education sector as declared under the Sustainable Development Goals focuses on ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all by the year 2030.

We are glad to note that our agenda  is in tandem with this global agenda; and we remain resolute that no child will be left behind. “Several of our Model Colleges are ready to come on stream having already commissioned them  in February, 2016 when our State celebrated her 40th anniversary.

The Akin Ogunpola Model College, Ewekoro commenced operations for the 2016/2017 academic year with the  acceptance  of  84 students into junior and senior secondary school.  Our administration is poised to open six more colleges in 2017”.


Check Also

DHL announces title partnership of Africa’s largest e-commerce and fintech event

DHL Express Sub-Saharan Africa (SSA) has announced that the company has signed on as title ...