Osun State Governor, Ademola Adeleke, has reaffirmed his administration’s commitment to implementing tax reforms that are fair, transparent, and supportive of businesses, assuring residents that increased revenue will translate into visible socio-economic development across the state.
The governor gave the assurance in Osogbo during the opening of a three-day stakeholders’ retreat focused on the implementation of newly enacted tax laws in the state.
The retreat, organised by the Osun State Internal Revenue Service, brought together senior government officials, tax administrators, private sector operators, and representatives of key professional groups.
Represented by the Secretary to the State Government, Teslim Igbalaiye, Adeleke described the engagement as a strategic step towards repositioning the state’s fiscal architecture in line with modern economic realities.
He stressed that the tax reforms were not introduced to impose additional hardship on citizens but to build a more equitable and sustainable revenue system.
According to the governor, Osun State faces increasing development demands that require stable and predictable revenue sources, making effective tax administration unavoidable.
However, he said his government was determined to strike a balance between revenue generation and economic growth, particularly at a time when households and businesses are under pressure from rising costs.
Osun New Tax Acts and the Push for Fair Revenue Growth
Governor Adeleke explained that the Osun New Tax Acts were designed to promote fairness, expand the tax net, and improve compliance without discouraging investment or entrepreneurship.
He noted that the reforms emphasise transparency, efficiency, and the use of digital platforms to simplify tax processes and reduce human interference.
He said the new framework recognises the central role of small and medium-scale enterprises in job creation and economic expansion, adding that policies under the Osun New Tax Acts were deliberately structured to be pro-business and investor-friendly.
“The intention is not to punish productivity or stifle innovation. Our focus is to create a tax system that is fair, predictable, and easy to comply with, while ensuring that government has the resources required to deliver essential services,” Adeleke said.
The governor further explained that the reforms provide a gradual and structured pathway for integrating informal sector operators into the formal economy.
According to him, many informal businesses contribute significantly to economic activity but remain outside the tax system due to complexity, mistrust, or lack of awareness.
By simplifying processes and offering guidance, Adeleke said the Osun New Tax Acts would help bring more people into the tax net in a supportive and non-coercive manner.
Protecting Low-Income Earners and Building Trust
Adeleke emphasised that protecting vulnerable residents remains a priority of his administration.
He said the tax laws include provisions for exemptions, reliefs, and reduced rates for low-income earners and disadvantaged groups.
“Our goal is balance — to grow revenue without harming livelihoods and to strengthen compliance without eroding public trust. People are more willing to pay taxes when they feel protected and respected,” the governor said.
He also reaffirmed his administration’s commitment to accountability in the use of public funds, noting that visible development projects encourage voluntary tax compliance.
According to him, revenue generated under the Osun New Tax Acts will be channelled into priority sectors such as education, healthcare, road infrastructure, and social welfare programmes, ensuring that residents see direct benefits from their contributions.
Stakeholders’ Role in Successful Implementation
Earlier in his address, the Special Adviser to the Governor on Taxes, Kamarudeen Ajisafe, described the enactment of the Osun New Tax Acts as a comprehensive reform aimed at aligning the state’s fiscal policies with an evolving economy.
Ajisafe said the success of the new tax regime would depend largely on stakeholders’ understanding, cooperation, and willingness to embrace change. He urged participants at the retreat to provide practical feedback that would help fine-tune implementation strategies.
“This reform is not just about laws on paper. It is about how well we communicate, enforce, and adapt them to real economic conditions. Stakeholder input is critical to ensuring that the Osun New Tax Acts work for government, businesses, and citizens alike,” he said.
He added that the retreat was designed to build consensus, clarify grey areas, and strengthen collaboration between tax authorities and the private sector.
Rising IGR Strengthens Reform Confidence
The renewed focus on tax reforms comes against the backdrop of improved revenue performance by the Osun State Government. Official financial records show that the state’s Internally Generated Revenue recorded a significant increase in the 2024 fiscal year.
According to the state’s audited financial statements for the year ended December 31, 2024, Osun’s IGR rose sharply to N54.7 billion, up from N25.3 billion recorded in 2023. The report, presented by the State Auditor-General, Kolapo Idris, also indicated that total revenue inflows for the year stood at N306.8 billion.
The improved figures, stakeholders say, provide a stronger foundation for the effective implementation of the Osun New Tax Acts and reinforce confidence in the state’s fiscal reform agenda.
As discussions at the retreat continue, expectations remain high that the tax reforms, if properly implemented, will enhance revenue sustainability, improve service delivery, and support long-term economic growth in Osun State.
