Issues

OSUN STATE ECONOMY: THE GOOD, THE BAD AND THE REMEDIES

Osun State was created in 1991 from Oyo State and it is situated in the South-West geo-political zone of the nation. It has a population of approximately 4.7m people with 30 local government areas. The state is home to the Yoruba cultural heritage centre “Ile-Ife” with the Imperial Majesty the Ooni of Ife, one of the leading traditional rulers in Africa. Ile-Ife is also the destination of Nigeria’s foremost tertiary institution, the Obafemi Awolowo University.

The capital city is Osogbo and the state is blessed with agro products, a large forest reserve and mineral resources. According to the National Competitiveness Council of Nigeria 2017 State Report, Osun emerged number 13 in overall ranking out of the 36 states of the federation. The report identified areas that the State has made progress which is stated below; NCCN 2017 Competitveness Report-Osun State. Sector Index: Health Number 1 out of 36 states, Security & Instability Number 1 out of 36 states, Taxation Number 3 out of 36 state.

In terms of the economic and business space, Osun state has the following rankings; NCCN 2017 Competitveness Report-Osun State. Segment Indicator, Business Sophistication Number 11 out of 36 states, Permits Number 35 out of 36 states, State Finances Number 36 out of 36 states, Access to Finance Number 13 out of 36 states, Government Policy and Contracting Number 13 out of 36 states, Quality of Roads Number 7 out of 36 states. Recently BudgIT Nigeria released its 2018 state of the states report which highlighted key issues around the fiscal level of the sub-nationals.

From the report we highlight the key developments as it concerns Osun State; BudgIT State of the States Report 2018-Osun Indicators, Fiscal Sustainability Index Number 35 out of 36; External Debt $96.5m, Domestic Debt N138.24bn, IGR Total for 2017 N6.49bn IGR per capita N1,378 per person, Net FAAC Allocation for 2017 N10.4bn, Average Statutory Monthly Allocation(January-June, 2018) N782.4m, Average Monthly VAT (January-June, 2018) N924.8m, Average Monthly IGR (January-June, 2018) N540.5m. Osun State in terms of its fiscal sustainability faces a challenge which necessitated governor Oyetola to work with a formidabble economic team to address.

It does not have the luxury of the 13% oil derivation that is reserved for the Niger-Delta states, so it must look inward and come out with innovative ideas, to move the economy forward.
The Osun State Governor will have to make tough economic decisions to ensure the state is still able to function effectively and manage its resources and infrastructural development of the state. It is clear that the public finance architecture has to be reworked and the reposition itself to attract key investments into the state, to boost industrialization that will in turn increase the internally generated revenue (IGR).

The government of Osun State must explore the public-private partnership(PPP) model for financing key infrastructural projects, because it needs to mobilize more of private capital investments into its economy. In the area of resource utilisation, Osun State should work with the National Investment Promotion Council, NIPC to explore how it can engage potential investors that seek to tap into its mineral resources like gold, scaling it to a massive industry, driving the solid minerals sector in the country.

Agriculture constitutes 26% of Nigeria’s GDP, and Osun State must leverage here with large-scale production of cocoa and other agro-products. With the South-West regional economic framework, Osun State has the opportunity to expand its economic frontier and should also explore strategic state trade and business agreements, like the Lagos-Kebbi example. Understanding that it has a population of over 50% that are under 25, this administration must plug into the opportunities in the digital economy from blockchain, fintech, software and hardware developments among others that can create jobs for the teeming youthful population in the state also for the massive development of the state.

5 thoughts on “OSUN STATE ECONOMY: THE GOOD, THE BAD AND THE REMEDIES

  • We’re a group of volunteers and opening a brand new scheme in our community.
    Your website provided us with valuable information to work on. You’ve done
    a formidable activity and our whole neighborhood will likely be thankful to
    you.

    my blog nordvpn special coupon code

    Reply
  • I was curious if you ever thought of changing the page layout of your site?
    Its very well written; I love what youve got to say. But maybe you could a little more
    in the way of content so people could connect with it better.
    Youve got an awful lot of text for only having one or 2 images.

    Maybe you could space it out better?

    Feel free to visit my web site … eharmony special coupon code

    Reply
  • Hello there! I could have sworn I’ve visited your blog before but after looking at a few of the posts I realized it’s new to me.
    Regardless, I’m certainly delighted I discovered it and I’ll be bookmarking it and checking back
    often!

    Look into my blog post; vpn special code

    Reply
  • I pay a visit everyday some blogs and sites to read articles or
    reviews, however this web site presents feature based posts.

    my web site;

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *