Ogun de-emphasises IGR, to fund N1trn budget with other revenue sources

…reactivates 8 moribund farm estates for food security

Considering the volatility of internally-generated revenue (IGR) which may affect optimal budget performance, the Ogun State Government has begun moves to shift its focus from IGR with an alternative funding mechanism as Government considers mainly the capital receipts as well as revenue allocations from Federal Government.

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The alternative funding sources are therefore being considered by the State Government to finance N1.054 trillion 2025 Ogun State Budget, having depended so heavily on the internally-generated revenue (IGR) in the 2024 Budget preparation and actualisation as the revenue source last year.

Recall that Governor Dapo Abiodun assented to a total of N1,054,542,020,147.47 2025 Ogun State Appropriation Bill earlier passed by the State House of Assembly in December, 2024, earmarking N600.982 billion for the Capital Expenditure, representing 57% and N453,560 billion, representing 43% for the Recurrent Expenditure. The Budget tagged, “Budget of Hope and Prosperity,” is bigger than 2024 Budget, which stood at N703 billion by about 30.5%.

Speaking at the 2025 Ogun State Budget Breakdown Session held in Abeokuta on Tuesday, Dapo Okubadejo, Commissioner for Finance and Chief Economic Adviser, declared that the 2025 Ogun State Budget would adopt a pragmatic fiscal approach to fund the Budgt, saying the State Government would be shifting its focus from heavily-depended internally-generated revenue source to other rveneue sources in order to make the Budgt a reality.

Okubadejo explained that the budgeting system mainly adopted by the State Governments across the Country focused on IGR-funded mechanism between 60% and 90% IGR target, but with the N1.054 trillion Budget intended for the year 2025, Ogun State only targets to finance the Budget with N314.8 bullion, representing 29.85%.

The Commissioner for Finance, who spoke in company of Olaolu Olabimtan, Commissioner for Budget and Planning, noted that the Capital Receipts intended to fund the Budget with, stood at N472.7 billion, representing 44.82%, while the Total Revenue from Federal Government – Statutory Allocation N69.8bn (6.62%), Excess Crude N72.8bn (6.90%) and Value Added Tax (N85.4bn (8.10%) – stood at N228 billion, representing 21.63% in totality.

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Also, Bolu Owotomo, the Commissioner for Agriculture and Food Security, stated that Governor Dapo Abiodun had approved quick and immediate resuscitation of all eight moribund farm estates located across all three Senatorial Districts of the State, covered in the 2025 fiscal estimates with a view to rehabilitating and providing additional foods silos and engaging in dry season farming for food security.