by Opeoluwa Quadri
Osun state received a total of N45bn from the FG as statutory allocation from June 2015 to July 2018
Between June and December 2015, N40.42bn was allocated to the state from federal allocation. Federal Allocation from FG to the state dropped to a meagre N5.9bn which was said to be due to economic recession. Allocation rose to N10.4bn in 2017, in the year 2018, however, between January and July 2018, Osun has received N12.4bn as federal allocation. Her Internally Generated revenue in 2017 was N6,486,524,226.45.
Osun state’s domestic debt for 2017: N138,239,593,287.18 while her external debt as at the same year was: $96,607,386.38
Paris Club Refund
First Tranche: N11.7bn
Second Tranche: N6.31bn
Third Tranche: N6.3bn
Osun state Modulated Salary Structure was said to have been introduced by the state so as to be able to pay backlog of salaries and at the same time to be able to pay workers’ salaries especially in the period of recession. Under the Osun state modulated salary structure, workers on level 01 to 07 who constitutes 67% of the work force were paid full salaries. Workers on grade levels 08 to 12, who constitutes 25% of the workforce receive 75% of their salaries. Workers on grade levels 13 to 17, a mere 8% of the workforce as well as all political appointees, received 50% of their salaries.
The governor recently paid the workers full salaries for the first time in about three years, which has also led to the workers union demanding that arrears owed them by the government be paid. Osun state is one of the most indebted state in the country and recently a governorship aspirant in the state, Iyiola Omisore said it will take the state up-to twenty years to pay the debt it owes.
Osun state needs to diversify its revenue base, it is one of the many states in the country that is almost completely reliant on federal government allocation without which it is almost impossible for them to survive. This can only be achieved by emphasising good governance that is founded on accountability and transparency, Osun state is one of the many states that has refused to make public its spending, Osun state government has for long refused to make public her annual budget, which in one way or the other affects the the capacity of the people to give their own input in government.
Osun state government is also the largest employer of labour in the state, diversifying her capital base would mean that the state would need to create the enabling environment for capital generation and investment. The state may need to develop her tourism base, industrial and mechanized agriculture, that put into consideration both the primary and secondary stage in the agricultural chain.