Call it ambitious you are right but one thing you won’t take away is that leadership of state governments across the federation is on the move looking at ways of increasing state Internally Generated Revenue, driving it through robust taxation. States in this light are projecting figures to reflect the dire need for an additional source of income to boost the state’s coffers.

Ogun state government has also joined the fray of state governments across the nation projecting an increased IGR target. This may not be far-fetched from the amazing run it pulled in the just concluded first quarter where it declared a mouthwatering sum of over ₦21billion from just the quarter.

To build on on this impressive run, the state government hopes to rake in over ₦30 billion in the second quarter.

The state government dares to look beyond the negative growth in 2020 posed by the outbreak of the Covid-19 pandemic to project over ₦100billion as IGR for 2021. The governor Dapo Abiodun-led team has also assured a clear roadmap to achieve meeting this whopping sum.

The State Governor recently in a timeout with members of the House of Representatives, the State House of Assembly, the State Executive Council, and the Body of Permanent Secretaries reiterated the administration’s commitment to positioning the state at a place where it can thrive, thinking out of the box.

Taxmobile.Online gathered that the sole reason for the sharp difference between the current bumper harvest and last year’s downturn is due to the state’s inability to collect and remit Pay as You Earn, PAYE due to the strict lockdown measures restricting businesses from operating. Another reason pointed out by the governor was the seizure of Education Tax due to the unprecedented pandemic.

Spotting the glitches in the system, the first-term governor opened that 14,000 captured landowners in the state as handed over by the Ibinkunle Amosun’s administration are on the erring side of paying extant Land Use Charge to the state’s purse.

In eradicating this loophole in the system, it is important to highlight that the Ogun State Government has hinted that it has increased the database to capturing 1.5million people with the potential to further shore up the state’s revenue.

Governor Dapo Abiodun has joined the league of other state governors to see the need for driving aggressive IGR

To consolidate on the gains of discovering loopholes in the Land Use administration and as a permanent fix, The government will in the nearest future launch a digitally-driven Ogun State Land Administration and Management System (OLAS). The system will further enable residents with building on the government’s site to verify and regularise their papers.

In case you missed it, these are the exact words of the governor,

 “Our Internally Generated Revenue dipped in 2020 and there are some reasons for that. There was no Pay As You Earn (PAYE) for us during the COVID-19 period. We gave incentives to industries because they couldn’t work during that period and because we are the education capital of the country, a lot of our IGR was coming from the tertiary institutions and because there were no students in schools, the revenue did not come in”.

“Let me tell you what the good news is. The good news is that first quarter of 2021, we already got ₦21b. Last year, we did N58b, so we’ve already got almost half of what we got last year in one quarter. This present quarter, we will do at least ₦30b and by the end of this year, by the grace of God, we will do over a ₦100b in Ogun State”, the governor stated.

 “We are being creative; our Land Use Charge, nobody is paying. When I resumed office, we inherited a database of land use charge of 14,000 people in the database. We’ve put different things in place and today, we have a database of land use charge of over 1.5million people. 1.5million from 14,000 in two years, you can imagine what that will translate into,” he said.

 “We now have a system that we call OLAS, Ogun State Land Administration and Management System. We are still going to launch that and what is that system? That system using ICT, we are going to ensure that all those that have built, we are starting with government-owned properties alone. All those that have built on government properties will have to come and regularise their papers”.

“We are not talking about those that built on any other land; we are talking of government land alone, so we bring them in to regularise their papers,” he added.

In similar development

Recall that Taxmobile.Online had analysed that Lagos, Ogun state’s neighbor had also projected a revenue base of ₦991.03billion for the 2021 financial year, tagging it a very feasible projection.

Similarly at the centre, the Federal Inland Revenue Commission, FIRS had also projected ₦7.61 trillion worth of revenue for 2021 away from last year’s target of ₦5.076 trillion.

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