The Allied Peoples Movement (APM) in Osun State has launched a scathing critique of Governor Ademola Adeleke’s administration, alleging poor performance in Value Added Tax (VAT) revenue generation. Citing data from StatiSense for the first quarter of 2025, the APM claims Osun State recorded the lowest VAT revenue in the Southwest region, a mere ₦5.95 billion, despite receiving a substantial allocation of ₦21.23 billion. The party contrasted this with Lagos State’s impressive ₦819.62 billion in VAT revenue and a corresponding allocation of ₦138.53 billion. The APM argues that this disparity reveals a “chronic lack of productivity and innovation in economic governance” under Governor Adeleke. The party further highlighted that even smaller states with less commercial activity surpassed Osun in VAT generation, labeling this as “fiscal laziness.” The APM has called for an internal audit of the state’s revenue-generating activities and the development of a VAT Growth Strategy Plan to transform Osun into a net contributor, rather than a dependent on federal allocations.
The ruling Peoples Democratic Party (PDP) has vehemently dismissed these criticisms. PDP spokesperson Oladele Bamiji characterized the APM’s comparison of Osun with economically vibrant states like Lagos and Ogun as evidence of ulterior motives and a deliberate disregard for the alleged financial mismanagement inherited from the previous 12-year rule of the All Progressives Congress (APC). Bamiji painted a picture of a near-collapsed economy upon Governor Adeleke’s assumption of office in 2022, burdened by debt, unpaid entitlements, neglected infrastructure, and a demoralized business environment. He argued that under Governor Adeleke’s leadership, the state’s economy is steadily recovering, thanks to policies focused on stimulating small and medium-sized enterprises (SMEs), empowering artisans and farmers, promoting digital entrepreneurship, and revitalizing the agricultural sector. These initiatives, according to Bamiji, are beginning to yield positive results reflected in improving VAT returns and the state’s rising Gross Domestic Product (GDP).
Bamiji contends that expecting Osun State, with its limited industrial base, to outperform other states in VAT generation within just two years of implementing reforms is unrealistic and economically naive. He emphasized that comparing Osun to Lagos, a former capital city hosting multinational corporations and boasting a GDP comparable to many African nations, is an unfair and illogical benchmark. He urged the public to scrutinize such criticisms with a discerning eye, focusing on facts and logic rather than succumbing to politically motivated narratives disguised as economic commentary. Bamiji expressed confidence in Governor Adeleke’s infrastructural development initiatives, ease-of-doing-business reforms, and strategic investments in the creative, technology, and agribusiness sectors as laying the foundation for future VAT growth and sustainable progress in Osun State.
The APM’s criticisms and the PDP’s rebuttal highlight a deeper debate on economic performance and development strategies in Osun State. The APM’s focus on VAT revenue as a key indicator of economic health raises questions about the state’s ability to generate internal revenue and reduce its reliance on federal allocations. Their call for an internal audit and a VAT Growth Strategy Plan suggests a need for greater transparency and a more proactive approach to revenue generation. Conversely, the PDP emphasizes the inherited economic challenges and the ongoing efforts to rebuild the state’s economy through targeted investments and policy reforms. The differing narratives underscore the complexity of evaluating economic progress, particularly in a state grappling with historical financial burdens and undergoing significant structural transformations.
The clash between the APM and PDP also reveals the political undercurrents shaping the discourse on economic performance. The APM’s critique could be interpreted as an attempt to hold the incumbent government accountable and highlight areas for improvement, while the PDP’s response seeks to defend its track record and emphasize the long-term vision for economic recovery. This dynamic underscores the importance of objective data and analysis in assessing economic performance, separating genuine concerns from politically motivated criticism. The debate ultimately serves to inform public discourse and encourage greater scrutiny of government policies and their impact on the state’s economic well-being.
The future of Osun State’s economic development hinges on effectively addressing the challenges identified by both the APM and the PDP. Boosting VAT revenue will require a multifaceted approach, including fostering a more conducive business environment, promoting entrepreneurship and innovation, and strengthening tax administration and compliance. Alongside these measures, addressing historical debts, improving public infrastructure, and investing in human capital are crucial for long-term sustainable growth. A constructive dialogue between the government, opposition parties, and civil society is essential for developing and implementing effective economic policies that benefit all citizens of Osun State. The ongoing debate, while politically charged, provides an opportunity to refine these strategies and ensure a more prosperous future for the state.
