As a result of the attendant effects of Covid-19 on the global economy, the State Government says, diversifying its revenue sources will minimize dependence on federal allocation, block leakages, as well as, boost the Internally Generated Revenue (IGR) for the overall development of the State.
The Commissioner for Finance and Chief Economic Adviser to the Governor, Mr. Dapo Okubadejo made this known during a chat with newsmen at his office, in Abeokuta, saying, there was need to strategize on ways to improve the State’s economy, as Nigeria and other countries of the world were currently battling the economic effects of Coronavirus epidemic and drop in oil price.
According to Okubadejo, “when you look at our budget, there are three components of revenues that we have already anticipated, the first is Federal Account Allocation Committee (FAAC), others are revenue from the Ogun State Internal Revenue Service (OGIRS) and thirdly, revenue from Ministries, Department and Agencies of Government (MDGs)’’.
He noted that the percentage of FAAC revenue from the budget was less than half of the total revenue of government, saying, ‘’the significant part of revenue as projected is internally generated revenue, which are from two main sources, PAYE, withholding taxes and the other categories of revenue coming from other MDAs”.
The Commissioner said in achieving set objectives, the State government had engaged some economic policies to increase revenue, through the implementation of different systems and solutions, such as Central Billing Management System (CBMS), Treasury Single Account (TSA), restructuring of the Lands Use System, enforcement and compliance of revenue, as well as inauguration of Committee on Revenue Mobilization and Enforcement.
“We are introducing other avenue of taxes, such as Ease of Doing Business, digitization of revenue process to promote transparency & accountability, setting up of Business Environment Council, to help reduce bottlenecks and create level of efficiency, Committee on Revenue Harmonization, to reduce multiplicity of taxes and overlapping of revenue heads/lines and more importantly, we are streamlining laws to accommodate MDGS.
“We are reviewing the process for land acquisition to make it more efficient and faster. We have also set up Ogun State Investment Promotion Agency, to assist in promoting the State and also to proactively sell the State to encourage investors. The Ogun State Waste Management Authority we are establishing, will be a private sector model for the collection, management and recycling of wastes, focusing on different categories, such as industrial, commercial, tertiary institutions, hotels, big mall, markets, as well as residential.
Okubadejo expressed optimism that the new policies would ensure a better planning and management of the State’s economy, block leakages, as well as ensure a cleaner environment.