The internally generated revenue (IGR) profile of Osun State for the 2025 fiscal year has left much to be desired as several key revenue lines performed abysmally below expectations.
Although the state generated a total revenue of N381 billion in 2025, the bulk of the money, N245 billion, came from the Federation Account Allocation Committee (FAAC). The state’s purported IGR accounted for merely 23.6% of the federal allocation and just about 15% of the total revenue generated for the year.
More concerning is the fact that out of the N58 billion presented as IGR, only N1.1 billion came from real commercial activities despite the state proposing to earn N8.1 billion from business ventures. This represents a paltry 13.5% budget performance.
Similarly, out of the N7 billion projected as earnings from gold and mineral resources mining, the state eventually realized only N727 million, representing 10.3% budget performance. This naturally raises serious questions about the endless noise and propaganda surrounding the so-called gold mining revolution in the state.
Also troubling is the performance of the Hotel Occupancy and Restaurant Consumption Tax. Out of the proposed N5.2 billion expected from the sector, the government realized only N8.1 million, representing an embarrassing 0.1% budget performance. With the number of hotels, lounges and recreational centres scattered across the state, it is difficult to understand how the government could only generate such a miserable amount. Clearly, something is not adding up. It is obvious that financial leakages are being tolerated within the system.
In the same vein, from the proposed N194.7 million expected as rent on government buildings, the state managed to generate only N3 million, representing a mere 1.5% budget performance.
Shockingly, for the whole of 2025, the Ọsun State Government generated a miserable N21,000 (Twenty-One Thousand Naira Only) from tourism whereas expenditure for the ministry of culture and tourism was N655 million, further exposing the poor commercial viability and weak financial management of government businesses.
A critical review of the revenue structure shows that the bulk of the IGR came not from productive or commercial ventures but from non-commercial activities such as school fees which generated N15.1 billion, medical services and sales of drugs in hospitals which generated N5.3 billion, and taxes deducted from workers which accounted for N17 billion.
What this portends for Osun State is alarming: without the federal allocation, federal government grants and capital receipts, the state---considering its total expenditure of N351 billion for 2025---would practically have gone bankrupt. Indeed, the state spent approximately 605% of its IGR.
If this data is not financially bleak and uninspiring, then someone should tell the people of Osun what else it is.
Should federal allocation dwindle today, the implication is that the state economy could collapse under the weight of its obligations. More importantly, if the Federal Government decides to restore fuel subsidy and reverse forex reforms---two economic policies largely responsible for the significant increase in federal allocations to states---Ọsun State may find it extremely difficult to meet its financial obligations.
The state cannot continue on this dangerous financial trajectory.
Osun State urgently needs prudent financial management that will genuinely block revenue leakages, address the hydra-headed corruption within government businesses and agencies, and activate sustainable policies capable of generating substantial revenue from productive commercial activities rather than overburdening citizens through taxes and fees.
ADEDEJI, a media practitioner, is Secretary Media and Publicity Committee as well as Team Lead Digital Media Committee, Osun APC Governorship Campaign Council
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