The Osun State government has set a target of N109.8 billion for Internally Generated Revenue (IGR) to finance its N427 billion budget for 2025.
This was revealed by the Commissioner for Economic Planning, Budget, and Development, Prof. Moruf Adeleke, during an analysis of the state’s 2025 budget on Thursday in Osogbo.
Adeleke explained that while the state plans to generate N109.8 billion internally, an additional N251 billion is expected from the Federation Account to fund the budget.
In addition, the state anticipates N36 billion from other capital receipts, with an estimated opening balance of N30 billion for the budget.
The commissioner highlighted that the 2025 budget, which has been dubbed the “Budget of Sustainable Growth and Transformation,” allocates N236 billion for recurrent expenditure, representing 55 percent of the total budget. Meanwhile, N191 billion, or 45 percent of the budget, is earmarked for capital expenditure.
Under the recurrent expenditure category, Adeleke noted that N102 billion would be used for personnel costs, including salaries, allowances, salary arrears, social contributions, and benefits. This represents 24 percent of the total budget.
A portion of the recurrent expenditure, N29 billion, will go towards servicing part of the state’s debt incurred by the previous administration, among other obligations.
Turning to the capital expenditure, Adeleke revealed that N6.6 billion has been allocated to health, N27.5 billion to education, and N6 billion to water and sanitation. Furthermore, N106 billion has been set aside for infrastructure development.
The commissioner assured that the ministry would ensure strict monitoring and implementation of the budget to meet the set targets and expectations.
He also urged the citizens of Osun State to cooperate with revenue-generating agencies in order to achieve the state’s developmental goals. He suggested that proper enforcement measures should be adopted to close revenue leakages and strengthen revenue generation efforts.
“By implementing these strategies, Osun State can create a more reliable and sustainable source of income to finance the 2025 budget,” Adeleke added.