Why we can’t increase our IGR - Ondo commissioner

Adewale Ajayi, Lagos - 26.03.2008

Ondo State Commissioner for Finance and Planning, Chief Tayo Alasoadura, has shed more light on why the state government found it difficult to increase its Internally Generated Revenue (IGR).

Chief Alasoadura said because the state practiced agranian economy and majority of the residents in the state were farmers, it was not convenient to impose tax burden on them.

He explained that in order to boost revenue generation, the state government went into partnership with Ogun State government to establish the Olokola Free Trade Zone , and when the project was fully in operation, it would encourage investors to come to the state .

Speaking with journalists in Lagos, Chief Alasoadura said the government had met the expectations of the oil producing communities, that was why there was peace in the areas.

He explained that the state government provided social infrastructure in the communities through the state Oil Producing Areas Development Commission (OMPADEC).

The commissioner said Dr. Olusegun Agagu’s administration wass a responsive government because it knew the implication of over-taxing the people of the state, and that not much revenue could be expected from the farmers who constitute 70 per cent of the population and the remaining 30 per cent being civil servants.

He added that this was why the governor was promoting industralisation. According to him, the state government assisted the councils to keep money for a period of three months, during which time it made available to them, running cost and salaries of staff and after the three months, the councils were expected to identify a capital project which was jointly funded by the state and the local governments.