The APM has slammed Governor Adeleke’s handling of Osun’s VAT, calling it weak and unproductive.
But the PDP fired back, blaming inherited debts and promising long-term growth through reforms.
The Osun State chapter of the Allied Peoples Movement (APM) has faulted Governor Ademola Adeleke’s administration over what it describes as the state’s poor performance in Value Added Tax (VAT) revenue, especially when compared to other South-West states.
In a statement issued on Sunday by the party’s state chairman, Adewale Adebayo, and made available in Osogbo, the APM referenced data released by data analytics firm StatiSense, claiming Osun recorded the lowest VAT figures in the South-West for the first quarter of 2025.
According to the party, Osun State generated just ₦5.95 billion in VAT revenue between January and March 2025, despite receiving a relatively higher allocation of ₦21.23 billion. In contrast, Ekiti State, which received a lower federal allocation of ₦19.63 billion, reportedly outperformed Osun in VAT generation.
The party expressed alarm at the figures, arguing that they reflect poorly on the fiscal strategy of the Adeleke-led government.
“This disparity between what Osun generates and what it receives is alarming. It points to a lack of economic productivity and innovation under the current administration,” the statement read.
The party also noted that smaller states with less commercial activity managed to outperform Osun, which it said indicates a concerning trend of “fiscal laziness.”
“The situation is not just disappointing; it is embarrassing. It reflects a government that has failed to energize local businesses or unlock the state’s economic potential,” the statement continued.
As part of its recommendations, the APM urged the Adeleke administration to conduct an internal audit of all revenue-generating activities within the state. The audit, according to the party, would help identify revenue leakages, inefficiencies, and areas of underperformance.
The APM further proposed the development of a dedicated VAT Growth Strategy Plan aimed at transforming Osun from a largely dependent state into a more productive and self-sustaining one.
To improve VAT generation, the party called on the state government to focus on expanding support for small and medium-sized enterprises (SMEs), modernizing the agricultural sector, and enhancing the ease of doing business across local communities.
However, in a swift response to the APM’s criticism, the Osun State chapter of the Peoples Democratic Party (PDP) dismissed the allegations as baseless and politically motivated.
Speaking on behalf of the ruling party, PDP spokesperson Oladele Bamiji described the APM’s position as “laughable” and “economically misguided,” particularly for drawing direct comparisons between Osun and states like Lagos.
According to Bamiji, Lagos enjoys historical advantages as a former national capital, home to multinational corporations and the country’s largest commercial hubs factors that make it incomparable to Osun in terms of VAT output.
“It is economically illiterate to expect Osun, with its limited industrial infrastructure, to match Lagos in VAT generation within two years of fiscal reforms,” Bamiji said.
He accused the APM of deliberately ignoring the long-term economic damage inherited by Governor Adeleke from the previous administration led by the All Progressives Congress (APC), which he said left the state burdened with debts, unpaid salaries, and a stagnant local economy.
“Governor Adeleke took over a nearly collapsed economy in 2022. He inherited unpaid pensions, neglected public infrastructure, and an environment that was hostile to small businesses. Turning things around takes time,” Bamiji explained.
He insisted that since assuming office, Governor Adeleke has taken deliberate steps to revive the state’s economy through targeted policies supporting entrepreneurship, digital innovation, and agricultural revitalization.
“These efforts are beginning to reflect in our GDP growth and will, in due time, reflect more strongly in VAT returns,” he added.
Bamiji further argued that instead of engaging in what he termed “empty political commentary,” opposition parties like the APM should contribute constructively to public discourse by presenting realistic comparisons and proposing practical solutions.
“The Adeleke administration is laying the foundation for long-term economic growth through strategic investments in the creative sector, technology, agriculture, and infrastructure. These investments may not deliver instant VAT results, but they are essential for sustainable development,” he noted.
While acknowledging that public scrutiny is a vital part of democracy, the PDP urged residents of Osun to weigh criticisms objectively and not fall for “politically motivated distractions.”
“Osun is undergoing a genuine transformation. The PDP remains committed to building an inclusive economy that benefits all residents. We will not be derailed by partisan noise or short-term political calculations,” Bamiji concluded.
The exchange between the two parties comes amid growing public interest in how Nigerian states are managing their finances, especially in light of increased demands for internally generated revenue as federal allocations come under pressure. The VAT revenue issue is particularly critical, as it is seen as a measure of both economic activity and effective governance.
With VAT returns tied to business transactions and consumption patterns within a state, analysts argue that boosting local productivity and enterprise growth is essential to improving revenue performance. As Osun State navigates this fiscal challenge, both ruling and opposition parties appear keen to shape the narrative heading into future political contests.
