OSOGBO — The Allied Peoples Movement (APM) in Osun State has criticised Governor Ademola Adeleke’s administration for the state’s low Value Added Tax (VAT) performance in the first quarter of 2025, describing it as evidence of poor economic governance and over-reliance on federal allocation.
In a statement issued by the party’s state chairman, Adewale Adebayo, APM expressed dismay that Osun State generated only N5.95 billion in VAT revenue between January and March 2025—the lowest in the South West—despite receiving a federal allocation of N21.23 billion.
“This fiscal underperformance, especially when compared to states like Lagos, which generated N819.62 billion and received N138.53 billion, exposes a chronic lack of productivity and innovation under Governor Adeleke,” the statement read.
The party argued that the Adeleke-led government is failing to stimulate economic activity and boost internal revenue, unlike other states in the region. It further warned that such a trend could hinder the state’s long-term financial autonomy and development.
In a swift rebuttal, the People’s Democratic Party (PDP) spokesperson in Osun, Oladele Bamiji, dismissed APM’s criticism as “political witch-hunting.” He argued that comparing Osun with economically stronger states like Lagos and Ogun ignores the structural and economic realities of Osun.
“Governor Adeleke inherited a near-collapsed economy in 2022 — riddled with debt, unpaid salaries, and abandoned infrastructure. Despite these challenges, the administration is steadily rebuilding the economy,” Bamiji stated.
He said the current administration’s support for SMEs, artisans, farmers, and digital entrepreneurship has begun to reflect positively in the state’s GDP growth, even if VAT returns remain modest.
The exchange highlights growing political tension over economic performance as states prepare for the 2027 general elections, with fiscal transparency and internal revenue generation emerging as key issues.
