Toba Owojaiye reporting
Benin City, Edo State
Edo State witnessed an extraordinary surge in its Internally Generated Revenue (IGR) despite facing economic challenges triggered by the removal of fuel subsidies. “In 2023, Edo State defied economic odds with a remarkable 40% growth in Internally Generated Revenue, reaching an impressive N62 billion, a historic milestone,” stated Hon. John Osagie Inegbedion, Chairman of the Edo Taskforce on Internally Generated Revenue.
Truth Live News gathered that, following the 2024 EIRS Management Performance Review in Benin City, Inegbedion emphasized that the State’s formal sector played a pivotal role in driving the IGR to this historic high, surpassing the combined revenue generation of 12 states in 2022. “Governor Obaseki’s economic reforms and investment drive have propelled Edo State’s economy to unprecedented heights, attracting investments that contributed to the substantial revenue growth,” he added.
Highlighting the specific contributors to the increased IGR, Inegbedion pointed out that the Pay-As-You-Earn (PAYE) tax was a major player, contributing N26.9 billion—an impressive N9.44 billion more than the previous year. “The N17 billion surge in 2023 IGR is equivalent to the combined revenue generation of 12 states in 2022, showcasing the tangible impact of Edo’s economic policies,” he explained.
Withholding Tax collection in 2023 amounted to N4.8 billion, reflecting an increase of N1.8 billion. Other revenues experienced a growth of N1.46 billion, while Ministries, Departments, and Agencies (MDAs) contributed N8.3 billion, representing a growth of N1.8 billion. “This is the first time in the history of revenue administration in the State that revenue has grown by forty percent over the preceding year, a testament to the success of Governor Obaseki’s strategic and economic revolution,” emphasized Inegbedion.
Interestingly, the informal sector, comprising MSMEs, traders, artisans, and self-employed operators, saw a collection of N1.9 billion. Despite a reduction of N312 million compared to 2022, Inegbedion explained that this dip was a deliberate move by the Edo State Governor to ease the burden on self-employed individuals in the informal sector.
Inegbedion acknowledged that a significant portion, 95% of the revenue increase, stemmed from the formal sector, indicating a significant shift in the state’s economic landscape. “95% of the increase in IGR came from the formal sector, indicating a significant shift in the economic landscape of Edo State, thanks to Governor Obaseki’s visionary decisions,” he lauded.
Inegbedion commended the governor’s efforts, stating that the positive results of the investment and economic reforms were evident. “We commend the Governor as his investment and economic reforms are showing results as new investments are now paying their PAYE and WHT taxes which are deducted at source,” he highlighted.
The chairman also noted the implementation of the ERAS technology to enhance tax administration, an indication that Edo State is not just weathering the storm but thriving in a challenging economic climate.