Ogun’s IGR grows from N750m to N3b in two years

The Ogun State Government said in Abeokuta on Friday that the state’s monthly internally generated revenue had increased from N750 million in 2011 to N3 billion in 2013.
The Commissioner for Finance, Kemi Adeosun, said at a media briefing that the increase was as a result of the “ongoing financial engineering” in the state.
Adeosun said the financial engineering began in 2011 when the Governor Ibikunle Amosun-led administration assumed office.
The commissioner said the government’s effort had continued to increase the number of people paying taxes in the state.
“Enforcement of the residency rule has been strengthened with a number of court judgments being obtained against employers in neighbouring states, who failed to remit taxes due to Ogun,” she said.
Adeosun added that the ongoing infrastructure renewal, particularly in the areas of roads and schools, had continued to generate voluntary compliance with taxation laws by the residents.
“People are now able to see what the government is spending funds on and are therefore encouraged to pay taxes without necessarily being coerced,” she said.
The commissioner, however, said the state government had put measures in place to ensure that the IGR reached a monthly average of N5 billion before the end of the year.
She said government intended to attain the target by strengthening its cashless revenue collection policy, introduced in 2011.
She said: “This initiative has resulted in an increase in collection figures in tertiary institutions to the tune of N2.7 billion between January and March 2013 as against N908 million within the same period in 2012.
“Based on this success story, the policy will be replicated in the state hospitals, judiciary and other ministries, departments and agencies of government.”
Adeosun added that the revenue monitoring team would also be strengthened to assist key revenue-generating MDAs in co-ordinating their activities.
“This team will provide logistic, organisational and technological assistance in attaining revenue targets,” she said.
The commissioner explained that the Amosun-led administration had reduced the N87 billion debt inherited in 2011 to N61.6 billion in December 2012.
She, however, said government had already developed a medium term financial model which would ensure that the state’s debt grew only in proportion to the IGR growth.