Senator Olamilekan Adeola, the All Progressives Congress (APC) governorship candidate in Ogun State, has promised to aggressively pursue and recover corporate taxes and revenue generated by industrial entities operating within the state but remitting their top-level executives' taxes to Lagos State. This declaration was made during an interactive session with journalists at the Ogun State Council of the Nigeria Union of Journalists (NUJ) Secretariat in Abeokuta. Adeola outlined his political agenda for the 2027 governorship election, focusing on his economic strategy.
Adeola expressed concern that despite Ogun State being recognized as Nigeria's primary industrial hub, its internally generated revenue (IGR) fails to reflect its extensive industrial base due to structural tax leakages. He attributed the disparity to the location of corporate headquarters, where manufacturing plants and operations are based in Ogun State while corporate headquarters, along with high-earning directors and senior managers, remain situated in Lagos. This, he believes, affects the state's revenue.
The lawmaker compared the fiscal metrics between Ogun and Lagos, noting that Lagos achieved a ₦1.6 trillion revenue benchmark while Ogun State continues to lag behind. He estimated that over 30 percent of Lagos' corporate tax yields originate from economic activities anchored in Ogun State. Adeola insisted that his administration would no longer rely on traditional, delayed inter-state monthly tax reconciliation processes for cross-border workers.
Adeola proposed that corporate entities set up regional executive offices within a newly designated Central Business District in Abeokuta. He suggested that companies should establish their regional offices in Abeokuta, allowing the state to have some of their managers and even an Executive Director. This, he believes, will enable the state to collect more revenue.
Beyond corporate income tax collection, Adeola also pledged to clamp down on uncoordinated federal mining activities within Ogun. He asserted that external commercial operators frequently extract the state's solid mineral resources using federal permits without direct financial equity flowing to the state government. This has resulted in a loss of revenue for the state.
The candidate also criticized major industrial complexes for relying on non-resident labour forces and casual positions for indigenous workers. He promised to institute a mandatory local content policy requiring firms to offer first right of refusal and managerial quotas to qualified Ogun residents. This policy aims to promote employment and local labour laws in the state.
Adeola's proposals aim to boost Ogun State's revenue and promote economic growth. If elected, his administration will focus on implementing these policies to ensure that the state benefits from its industrial base. The candidate's plans have been outlined as part of his agenda for the 2027 governorship election.
Key points
- Adeola proposes a new Central Business District in Abeokuta to capture corporate taxes.
- He estimates that over 30 percent of Lagos' corporate tax yields originate from Ogun State.
- Adeola pledges to clamp down on uncoordinated federal mining activities within Ogun.
