Despite the economic challenges stemming from the removal of fuel subsidies, Edo State witnessed remarkable economic growth in 2023, as the Internally Generated Revenue (IGR) surged by over 40 percent, reaching a total of N62 billion. This substantial increase of N17 billion from the N45 billion recorded in 2022 was attributed to the progressive economic reforms and strategic investments led by Governor Godwin Obaseki.
The disclosure was made by the Chairman of the Edo Taskforce on Internally Generated Revenue, Hon. John Osagie Inegbedion, during a press briefing following the 2024 EIRS Management Performance Review (MPR) in Benin City, the state capital.
Inegbedion highlighted that the 2023 IGR was primarily propelled by the state’s formal sector, standing as a testament to Governor Obaseki’s commitment to attracting investments. He noted that the N17 billion growth in 2023 exceeded the combined revenue generation of 12 states in 2022.
“The economic reforms and investment drive under Governor Obaseki’s administration have propelled the Edo economy to achieve a growth that surpasses the total IGR collection of 12 states in the previous year,” stated Inegbedion, emphasizing the unprecedented nature of the growth.
The breakdown of the 2023 IGR revealed that Pay-As-You-Earn (PAYE) tax contributed N26.9 billion, indicating an increase of N9.44 billion from the previous year. Withholding Tax collection amounted to N4.8 billion, reflecting an increase of N1.8 billion. Other revenues experienced a growth of N1.46 billion, and Ministries, Departments, and Agencies (MDAs) contributed N8.3 billion.
In contrast, the informal sector, comprising businesses such as Micro, Small, and Medium Scale Enterprises (MSMEs), traders, artisans, and self-employed operators, saw a collection of N1.9 billion, marking a reduction of N312 million from the 2022 collection of N2.2 billion. Inegbedion explained that the reduction in the informal sector’s contribution was a result of the state government’s conscious decision to provide relief to self-employed individuals during the economic downturn.
Notably, 95% of the overall increase in IGR came from the formal sector, highlighting the success of Governor Obaseki’s strategic economic initiatives.
Inegbedion commended the governor for his foresight and proactive economic decisions, which positioned Edo State to weather the economic challenges experienced by other states. He concluded by expressing optimism for sustained growth, citing ongoing improvements in tax administration through the deployment of the Electronic Revenue Administration System (ERAS) technology to streamline taxpayer services, enquiries, assessments, and payments.
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