The Oyo State Government has attributed its impressive Value Added Tax (VAT) contribution to strategic economic stimulation and effective governance.
The Commissioner for Information and Orientation, Prince Dotun Oyelade, made this known on Saturday during a radio programme in Ibadan, the state capital.
He revealed that Oyo State ranked third in VAT contribution among the 36 states and the Federal Capital Territory, citing the government’s commitment to economic growth as a major factor.
“Governor Seyi Makinde stimulates the economy by injecting ₦6.4 billion into the state’s economy on the 25th of every month for nearly five years, amounting to over ₦77 billion annually for the state workforce,” Oyelade stated.
He further noted that as of January 2025, with the implementation of an ₦80,000 minimum wage, the government now disburses ₦12 billion monthly, translating to ₦143 billion annually.
“This consistency in salary and wage payments not only enables over 130,000 government employees—the largest workforce in the South West—to plan their finances but also boosts trade and agriculture. Farmers and produce traders benefit from good infrastructure and reliable consumer demand, ensuring business growth,” he added.
Oyelade emphasized that the steady disbursement of salaries has fueled commercial activities, increased patronage for artisans, and enhanced real estate and hospitality investments.
He recalled that between May 2019 and May 2024, the number of hospitality establishments in Oyo State surged from 1,424 to 5,342—a remarkable 221% increase.
Beyond investors, he pointed out that the state’s improved infrastructure and affordable living conditions have attracted families relocating to Oyo, further strengthening economic activity.
“In the VAT 2024 report, the South-West region contributed the highest amount—₦3.11 trillion—to the federation’s VAT revenue, followed by the South-South with ₦1.08 trillion,” Oyelade disclosed.
“Of the ₦3.11 trillion contributed by the South-West, Oyo State accounted for ₦272.41 billion, demonstrating the effectiveness of our economic policies.”
The commissioner reiterated the government’s commitment to sustaining policies that drive economic growth, improve infrastructure, and enhance the standard of living for residents.
