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Governor of Oyo State, Seyi Makinde
The Oyo State Government has said its brilliant performance in the Value Added Tax contribution can be attributed to the efficient stimulation of the economy.
The state Commissioner for Information and Orientation, Prince Dotun Oyelade, said this on Saturday while featuring on a radio programme in Ibadan, the state capital.
He said Oyo State came third in VAT contribution among the 36 states of the federation and the FCT because the right stimulus is being deployed to trigger the state’s economic potential.
Oyelade said, “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 buying and selling and opened up patronages for artisans of different persuasions.”
The commissioner also said that the increase in the real estate sector and hospitality businesses that have 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 per cent rise.
Oyelade noted that apart from investors, the surge of families who are resettling in the state due to better infrastructure and an affordable standard of living are some of the factors impacting the stimulation of the state’s economy.
He added, “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.”
