Ogun State’s internally generated revenue (IGR) could receive a major boost if companies operating in the state are compelled to remit more of their corporate and executives’ taxes locally, Senator Olamilekan Adeola, popularly known as Yayi, has said.
Adeola, the All Progressives Congress (APC) governorship candidate for the 2027 election in Ogun State, said he would pursue revenue currently accruing to Lagos from businesses whose industrial operations are based in Ogun.
The senator, who represents Ogun West Senatorial District, made the pledge on Friday during an interactive session with journalists at the Ogun State Council of the Nigeria Union of Journalists (NUJ) Secretariat in Abeokuta, where he outlined his economic agenda ahead of the 2027 governorship election.
He argued that Ogun’s extensive industrial base was not translating into commensurate internally generated revenue because many companies maintain their corporate headquarters and senior management structures in Lagos, despite operating manufacturing plants and other facilities in Ogun.
According to Adeola, the arrangement allows Lagos to collect taxes from high-earning directors, managers and other senior executives whose employers conduct substantial business activities in Ogun.
“Many of these industries establish themselves in our state but take their head offices to Lagos. By doing so, the return on investment from establishing in my state cannot be compared with what it should be, because the top echelon, all the managers and directors are in Lagos, and their taxes are paid to Lagos,” he said.
Yayi targets Lagos corporate tax revenue
Adeola cited the difference between the revenue profiles of Lagos and Ogun as evidence of what he described as a significant gap between Ogun’s industrial contribution and its tax receipts.
He referenced Lagos’ ₦1.6 trillion revenue benchmark and claimed that more than 30 per cent of the corporate tax revenue generated by Lagos was attributable to economic activities based in Ogun State.
The APC candidate said his proposed administration would seek to address the situation by encouraging companies operating in Ogun to establish regional executive offices in Abeokuta.
Rather than depend on the existing monthly tax reconciliation arrangements between states for workers operating across state boundaries, he proposed a more direct approach involving the physical presence of senior corporate executives in Ogun.
Adeola said he would designate a Central Business District in Abeokuta and encourage industrial companies to establish regional offices there, while retaining their existing corporate headquarters in Lagos.
“I am not saying you should take your head office out of Lagos, but in my new Central Business District here in Abeokuta, come and establish your regional office so that I can have some of your managers and even an Executive Director here,” he said.
“I strongly feel that more than 30 percent of that revenue from Lagos is my money, and I have to collect it.”
His proposal places corporate taxation, revenue administration and the attraction of regional business offices at the centre of his economic agenda for Ogun State.
Adeola promises action on mining revenue
Beyond corporate taxation, Adeola said his proposed administration would address what he described as revenue losses arising from federal mining activities in Ogun State.
He alleged that commercial operators from outside the state were exploiting its solid mineral resources under federal permits without providing corresponding financial benefits to the Ogun State Government.
The senator pledged to pursue measures that would ensure the state receives greater financial benefits from mining activities within its territory.
He did not provide details of the proposed measures or specify how his administration would address the division of regulatory and revenue responsibilities between the federal and state governments.
APC candidate promises local employment policy
Adeola also pledged to introduce a local content policy requiring industrial companies operating in Ogun to prioritise qualified indigenes in employment and management appointments.
He criticised major industrial complexes for relying heavily on workers from outside the state while offering indigenous residents casual positions.
Under the proposed policy, companies would be required to give qualified Ogun residents the first right of refusal for available positions and meet managerial employment quotas for indigenes.
The candidate said the approach would seek to ensure that industrial development in Ogun translates into greater employment opportunities and economic benefits for residents.
His proposals on corporate taxation, mining revenue and local employment formed part of the economic agenda he presented to journalists as preparations for the 2027 governorship election gather momentum.
