The Governor Seyi Makinde led administration’s achievements in the economy has meant a better standard of living for the people of Oyo State. He ran with the philosophy: we will do what we can to ease the hardships of our people and what we can’t do, we will not make worse. To this end, Governor Makinde made use of agribusiness as the major driver of the economy of Oyo State thereby attracting private investments and expansions of private interests in the state. In addition, Governor Makinde injected funds into the Oyo State economy by regularly and consistently paying the salaries of Oyo State workers and pensioners. The state also made use of the Alternate Project Funding Approach for major infrastructural projects, expanded its tax base while cutting the running cost of government by 50% thus reducing government overhead cost by 12.3%.
Please read all about Governor Seyi Makinde’s achievements in the economy as we track his campaign promises in the agribusiness and finance sectors using the Roadmap to Accelerated Development in Oyo State, 2019-2023. You will find his first-year achievements in the economy here.
Review of Governor Seyi Makinde’s Achievements in the Economy for two years in office
Stimulating the economy of Oyo State through Agriculture
Governor Seyi Makinde’s administration completed the reconstruction of the 65km Moniya-Ijaiye-Iseyin Road which is linked to Ijaiye and Ipapo-Iseyin farm settlements. The 12 km Apete-Awotan-Akufo Road which leads to the Akufo Agribusiness Hub (previously farm settlement) is also being reconstructed. The Aawe Township Road leading to the Agribusiness Incubation Centre, Awe was also reconstructed.
The Oyo State Government had, two months into Governor Makinde’s tenure in 2019, fulfilled its obligation with the World Bank by paying the 12% counterpart funding of N350 million which the previous admin had failed to pay since 2016. It also inaugurated the implementing committee for the state to benefit from the Rural Access and Agricultural Marketing Project (RAAMP). Because of this, Oyo State was accepted to benefit from the construction of over 200 km of rural roads. The roads selected in 2017 have been re-validated to reflect the current gaps in the rural roads.
Eight indigenous and international agribusiness companies have signed up to commence work in both Eruwa and Akufo Agribusiness Industrial Hubs. The contract for the construction of the two hubs has been awarded along with the contract for Fasola Agribusiness Hub.
Niji Group, Psaltry International Ltd and Rontol Foods all started the cassava processing arm of their businesses in the past one year. Also, the Oyo State Agribusiness Development Agency (OYSADA) is collaborating with the private sector to revive the moribund Ido-Ibadan Farming and Marketing Cooperative Factory, Ido. The factory which will be completed this year will process 30 tonnes of cassava/daily and employ about 140 people working day and night shifts.
In the past one year, Simply Green Farm, a fruit processing company has established its business in Oyo State.
Not yet commenced
Not yet commenced.
The Oyo State Agribusiness Development Agency (OYSADA) is collaborating with the International Institute of Tropical Agriculture (IITA) to convert the former moribund Rural Community Development Centre (Aawe) into an agribusiness hub. The facility renamed Oyo State-IITA Youth Agribusiness Incubation Park Centre currently hosts 100 youths who are undergoing training.
The incubation park centre now contains the following facilities:
- Hybrid solar power installed for energy.
- Fish pond constructed at 10,000 capacity.
- Poultry pen constructed at 2,000 capacity.
- Goat and sheep pen constructed at 100 capacity each.
- Cassava processing centre in operation with 1 ton per pay.
- Borehole constructed for dry season irrigation.
- 10Ha cashew plantation pruned and cleared.
- Perimeter fencing in place.
The incubation park centre has 100 ha of cultivable land and the trainees are currently engaged in vegetable and cassava production. Cassava seed production is also ongoing.
The following will be implemented from Q3 2021:
- Cashew processing centre to be established.
- Oil palm processing to be in full operation.
- Soybean processing centre to be established.
- More hectares to be cleared for cassava and vegetable production.
- Hostel facilities to be refurbished.
This pilot project is ongoing. An additional 1,000 youths will be trained later this year.
OYSADA is replicating this incubation park centre in Tede, Oke-Ogun and Igbo-Ora, Ibarapa.
The Oyo State Agribusiness Development Agency (OYSADA) in partnership with the International Institute of Tropical Agriculture (IITA) are implementing the Start Them Early Program (STEP) in 7 schools in all geo-political zones in the state. STEP introduces agribusiness development to secondary school students in Oyo State. This has resulted in increased of knowledge in agriculture and agribusiness.
Surveys conducted on the students before and after the programme commenced revealed that STEP increased knowledge of agricultural tools by 83%, increased students’ interest in agriculture by 66%, improved students’ knowledge in ICT by 77%, created a positive students’ perception towards agriculture by 81% and increased students’ knowledge in agribusiness by 65%.
IITA renovated and upgraded Fasola Grammar School, Fasola to serve as a pilot location for the programme, while the Oyo State Government is renovating and upgrading the other 6 schools; Bishop Phillips Academy, Ibadan; Methodist High School, Ibadan; Christ High School, Oleyo; Adegun Asake Grammar School, Igangan; Iresaadu High School, Iresaadu and UMCA Secondary Grammar School, Igbeti.
Since the commencement of STEP in July 2020, the following activities have taken place:
- Agribusiness workshop organised for students and teachers.
- STEP Tidbits charms food vendors organized at Bishop Philips Academy, Ibadan.
- Fasola livestock enterprise stocked 200 broiler chicks.
- Livestock Enterprise students harvested 400 from 500 catfishes at Bishop Philips Academy and Methodist High School, Ibadan.
- STEP-Oyo Teachers Workshop organised to ensure continuity and longevity of the STEP project.
The STEP programme will lead to improved economic benefits leading to increase in the number of agribusiness ventures.
Not yet commenced.
The silo project is ongoing.
The database of 10,000 smallholder farmers created under the Oyo State Agricultural Micro-Enterprise Scheme were supported with palliatives as part of the COVID-19 Food Security in Emergency scheme. The data base is also a baseline for big data development of farmers data base in Oyo State which will be used for planning. Furthermore, the data is being used for planning and forecast on Agricultural production and processing in the state.
The clearing of 6,000 hectares of land in Oyo State as a pilot under the Central Bank of Nigeria (CBN) supported project commenced in May 2021 in Oke Ogun. 2,000 hectares has been cleared in Ilero, Kajola Local Government Area. Youth participants will be drawn from the Youth Entrepreneurship Agribusiness Project (YEAP) list to cultivate part of the land being cleared.
The Oyo State Ministry of Agriculture currently has a database of over 10,000 farmers collected by the current administration under the big data development of farmers. The biometric data of all the farmers have been captured. The process to capture the GPS of their farms for the authentication of the farmers is ongoing.
Under Governor Seyi Makinde’s administration, some private sector investors such as Rontol Processing center, Ilaju Processing center and Farmconnect Innovation Hub have commenced processing and agricultural innovations in the state.
Also, the development of Agribusiness Industrial Hubs (farm estates) has commenced with Fasola as the starting hub. The hubs through the management will link the contracted commercial farmers with the processing centres.
This was being implemented under a collaboration with Farmcrowdy. However, due to the COVID-19 pandemic, the programme was affected and is not likely to continue.
The Fadama project has ended.
Re-organization in the Agriculture sector in Oyo State that birthed the Oyo State Agribusiness Development Agency has given way for the development of the Directorate of Extension services in the Ministry of Agriculture with regional offices. More staff in the former OYSADEP will strengthen the deficit in the Directorate. The new staff will be trained in modern advisory services. Also, as part of the state’s partnership with IITA as technical partner, E-extension services will also be deployed to back the current extension services.
There is market linkage in place through public private and development partnership. Additionally, the Oyo State Government is going into processing tagged “Made in Oyo” and it is a kind of buy back mechanism.
A Memorandum of Understanding (MoU) has now been signed between the Oyo State Government and Ogun-Osun River Basin Development Authority for irrigation of farms in Oyo State.
Three farm settlements in Oyo State (Akufo, Eruwa and Fasola) are being upgraded into agribusiness hubs which will have modern facilities and create employment opportunities for young people. Work has commenced at Fasola Agribusiness Industrial Hub.
Also, as part of the Agribusiness Education project, the Start Them Early Project (STEP) is now being implemented in 7 schools across the geo-political zones of the state (see no 8 above).
Other agribusiness programmes targeting the youth are:
- Youth Enterprise Agribusiness Project (YEAP) piloted with 51 youths in a training of trainers’ incubation that will lead to expansion to 1,000 young entrepreneurs. A call for applications was made in April 2021 for 1,000 applicants and the applications are being processed.
- Empowerment of 100 females in Agribusiness under the French Government SEFAN IITA project is ongoing.
- GIZ project in support of 200 seed development Agripreneurs has commenced.
- Support for 6,000 farmers under WB NCARES project with mandatory 30% youth inclusion has commenced.
Loan facilities are available to farmers under the Agricultural Credit Corporation of Oyo State (ACCOS) at a single digit rate. Also, farmers can access loans through the Central Bank of Nigeria- Accelerated Agriculture Development Scheme (CBN-AADS).
Financial Decisions that Stimulate the Oyo State Economy
In the past one year, there has not been any increase whatsoever on the existing tax rates inherited by the current administration led by His Excellency, Governor Seyi Makinde. However, the state government has reviewed some of the outdated and extremely low rates, and legislations are being considered to amend these rates. The government has made efforts to right-price the rates based on some of the reforms to Revenue Laws of a number of MDAs e. g. the 2020 Hospitality and Tourism Law of 2020 and administrative reform of Business Premises rates and assessments. In fact, where some rates have bases and caps the government has stayed within the lowest bands e. g. Environmental Development Levy and Gaseous Emissions.
The Governor Seyi Makinde led administration has broadened the tax base by enumerating SMEs for presumptive tax, organising the informal sector for daily road taxes collection on commercial motorcycles and tricycles, and taxes and commercial buses and trucks. Through the collaboration of the Formal Sector Consultant and the Board of Inland Revenue, over a thousand taxpayers have been added to the PAYE agents base. Enumeration of over 650,000 properties in the state which enable us to broaden our land use charge tax payer base from less than 10,000 in 2019 is another example. The existing tax base has equally been broadened by bringing more people into the tax nets/brackets focusing on the informal sector i.e. the market sellers, artisans etc. in conjunction with their various groups and associations.
In terms of business support and information, in addition to palliatives of 35% and 50% to businesses, mostly Small and Medium Enterprises (SMEs), the government published notices for filing of annual returns and also sent reminders to all taxpayers in the data base to pay their taxes and for businesses to pay their harmonised bills. The Relationship Management Unit of the Oyo State Board of Internal Revenue was strengthened with additional resources and infrastructure to enhance their capacity to speedily look into disagreements and requests for reassessment of PIT by mostly private business people and owners of SMEs. One of the aims of this current administration has been to provide support to SMEs through the provision of seamless access to low interest capital, training and workshops. The ‘One Stop Shop’ concept put in place by this administration has been able to ease the stress of doing business and eradicate double taxation.
Improvements in collection of property taxes have come by way of enumeration of existing properties and a more effective delivery of Land Use Charge bills across the state. The Act itself is also undergoing improvements and necessary amendments in the Oyo State House of Assembly to strengthen its enforcement and dispute resolution provisions. Online payment channels in the form of POS have also been deployed at all Town Planning Offices in all 33 local government areas.
The current administration has brought significant changes to the structure and operations of the Oyo State Board of Internal Revenue through the various reorganisation efforts implemented to reflect professionalism, accountability and efficiency. At the inception of the current administration, a new Executive Chairman was appointed and most of the senior management staff of the Service were changed to reinvigorate the system, stem sharp practices and low productivity. A reshuffle of middle management staff was also carried out. The staff strength was beefed up from less than 60 in June 2019 to 128 as at date. However, in the midst of this, the government has ensured to maintain competent, disciplined and qualified members of staff.
The government’s consultants have deployed various payment platforms to boost revenue collection. The Informal Sector Lead Consultant introduced web payment, the Land Administration Consultant introduced POS payment, and the Vehicle Licensing Administration deployed the autoreg platform in all the 33 local government areas. To reach more tax payers and for more effective and efficient transactions, these online payment platforms have been operational in conjunction with the respective revenue consultants as this will facilitate ease of payment for the various services to beneficiaries through mediums like phones and other devices.
There is currently no law compelling private sector contracts to pass through the Board. However, WHT and other deductions are carried out in respect of all payment transactions involving the Board of Internal Revenue. The Ministry of Finance collaborates with the Office of Accountant General to effect WHT and other applicable deductions on public sector contracts. The government encourages remittance of WHT on private sector contracts and any deficiency is captured in the course of its routine audit.
The billing application software is part of the operating infrastructure of the government’s Informal Sector Consultant and is presently being used for the state’s harmonised billing. It is also an integral part of the data centre recently delivered to the OYSIRS. The Payment Alert will not only alert the system, but it also becomes difficult to tamper with it. Furthermore, an enhanced automation drive system will be designed for the BIRS offices. The BIRS offices will be adequately computerised and an automated and fully integrated tax administration system would be established. In addition, the harmonised Billing System has been introduced which puts all tax liabilities of each tax payers together in one demand notice. Finally, the automation of collection through Billing Application Software has been on as the Data Centre constructed and handed over to the Board is about to commence operation.
A Lead Consultant for Audit and a few audits sub-consultants are in place collaborating with the Board of Internal Revenue for the routine audit of major companies. The pace of work is satisfactory and the mandate the government is working with is to ensure that by December 2021 all audits up to 2019 are fully completed.
The Oyo State Board of Internal Revenue has been able to hold regular town hall meetings, radio jingles, interviews and press releases to sensitise the public on the need to pay their taxes. In addition, a Tax Stakeholders Poverty to Prosperity Summit was held with Governor Seyi Makinde in attendance. He appealed for the cooperation of the public in meeting their obligations to the Oyo State Government. The government uses radio and television jingles and appearances to communicate from time to time mostly with the informal sector tax payers on LUC, daily road taxes, vehicle registration etc. and there is continuous sensitisation in both print and electronic media.
A meeting was held with the Commissioner for Finance, Commissioner for Local Government, Chairman of the Board of Internal Revenue and other stakeholders to clearly establish the taxes due to the state and that of the local government and how both parties can work together for the benefit of the state. It was agreed that regular engagement meetings to harness a mutually beneficial working relationship be scheduled in the first instance monthly with a view to discussing areas of improvement and compliance. The outcome of these meeting has been beneficial and has increased tax compliance within the state and the local government areas.
The Ministry of Finance is in constant engagement with local governments through the Ministry of Local Government or sometimes by way of direct intervention when there is conflict with local governments regarding types and areas of collection. By way of circular, all local governments in the state are fully sensitised as regards approved revenue collection in their tier of government. The Board of Internal Revenue works within existing government structures to increase tax payers’ compliance. For instance, no informal sector collection is initiated without inputs and collaboration with local governments.
Though there were financial provisions for training, the COVID-19 pandemic has limited the access of staff to training opportunities in the past year. Management staff have taken advantage of many online training and seminars as organized by CITN, JTB, NGF and Office of AGF in the past year.
Both legislative and administrative reforms are ongoing in respect of rates and levies. The Oyo State House of Assembly is currently reviewing the LUC Act, Consumption Tax Bill, and the Fisheries Bill. Rates, fees, levies and charges reform is also going on in the Ministry of Trade, and Ministry of Lands.
The Refuse Collection Revenue is undergoing reforms aimed at ensuring effective payment by the public and clear aggregation of revenue on consultant by consultant and area by area basis. Consultants with proven track records for the collection of public utility service charge have been appointed. With the IGR framework introduced and the use of technology, the appointed consultants would be able to enumerate and collect the right public utility service charge. Also, with prospects for a future improvement in water infrastructure, the Board of Internal Revenue is poised to work with Oyo State Water Corporation to improve their water rate collection. This contributes to improvement in public utility service charges.