Oyo State’s impressive ranking as the third-highest contributor to the Federal Government’s Value Added Tax (VAT) has been credited to the state’s strategic economic policies and targeted initiatives, according to the state’s Commissioner for Information and Orientation, Prince Dotun Oyelade.
In a recent interview on an Ibadan-based radio station, Oyelade highlighted the factors behind the state’s remarkable performance, which has placed it among the top contributors despite its challenges. Oyo State, unlike many other states, lacks seaports and has a relatively modest Internally Generated Revenue (IGR) of ₦5 billion, in stark contrast to Lagos’ ₦65 billion.
Nevertheless, Oyelade emphasized that the state’s economic success can be attributed to the proactive measures of Governor Seyi Makinde, who has consistently stimulated the local economy. “Governor Seyi Makinde has injected ₦6.4 billion into the state economy on the 25th of every month for nearly five years, contributing over ₦77 billion annually to the state workforce,” the commissioner stated.
In January 2025, this figure saw a significant increase with the introduction of the ₦80,000 minimum wage, which has resulted in monthly expenditures of ₦12 billion and an annual budgetary impact of ₦143 billion. “The consistency in salary payments not only enables the over 130,000 government workers in Oyo, the largest workforce in the Southwest, to plan their lives, but it also benefits farmers and market traders who can bring their goods to market with greater confidence,” Oyelade added.
He further noted that the predictability and regularity of salary payments have positively impacted commerce across the state, boosting patronage for local artisans and small businesses. The commissioner also attributed part of the state’s economic growth to the expansion of the real estate and hospitality sectors. He pointed out that between May 2019 and May 2024, the number of hospitality establishments in Oyo State surged by 221%, from 1,424 to 5,342.
In addition to attracting investors, Oyo State has seen a significant increase in the number of families relocating to the state due to improved infrastructure, affordable housing, and a higher quality of life. This influx of residents, combined with ongoing infrastructural developments, has further contributed to the growth of the state’s economy.
Oyelade referenced the 2024 VAT report, which showed that the Southwest region contributed the largest share of VAT, totaling ₦3.11 trillion, with Oyo State contributing ₦272.41 billion of that amount. “Despite the challenges, Oyo State’s contribution reflects the success of our economic strategies and the growing confidence of investors and residents alike,” he concluded.
