The Ogun State Government has announced an ambitious plan to generate N500 billion in Internally Generated Revenue (IGR) to finance the state’s 2026 fiscal year. The target, which marks one of the most aggressive subnational revenue projections in recent years, underscores the Abiodun administration’s push to build a more economically self-reliant and fiscally sustainable Ogun State.
Governor Dapo Abiodun disclosed the revenue goal during the Treasury Board meeting on the 2026–2028 Medium-Term Expenditure Framework (MTEF) and the 2026 budget session held in Abeokuta. According to him, the government is strategically positioning the state to fully harness its industrial strength, expanding infrastructure, and geographical advantages.
Abiodun said the N500 billion target is not merely a fiscal aspiration but a deliberate plan backed by reforms, policy alignment, and a determination to transform Ogun into Nigeria’s most competitive and efficient subnational economy. “We have set an ambitious target of generating N500 billion in Internally Generated Revenue to finance the 2026 fiscal year, as part of our drive to build a stronger and more self-sustaining Ogun State,” he said.
Long-Term Vision: N750 Billion IGR by 2027
The governor also provided insight into the administration’s long-term revenue plan, noting that the state aims to grow its annual IGR to N750 billion by 2027, the final year of his current tenure. This trajectory, he explained, aligns with Ogun’s stature as one of Nigeria’s top investment destinations and its unique position as Lagos State’s closest industrial and economic neighbour.
He emphasized that Ogun’s vast landmass — spanning more than 16,000 square kilometres — gives the state enough room to attract and accommodate investments that Lagos can no longer host due to space constraints and congestion.
“Ogun must leverage its proximity to Lagos and its vast landmass to achieve this target,” Abiodun said. “Our comparative advantage must be fully harnessed to provide what Lagos cannot offer. Innovation, efficiency, and accountability will be our guiding principles as we strengthen Ogun’s economic base.”
MDAs Directed to Develop Bold Revenue Plans
To meet the 2026 revenue target, Abiodun directed the Ogun State Internal Revenue Service (OGIRS) to contribute at least N250 billion. He also tasked other major revenue-generating agencies — including the Ogun Property Investment Corporation (OPIC), the Bureau of Lands, the Ministry of Education, Science and Technology, and the Ministry of Housing — to upscale their revenue mobilization efforts.
He stressed that every Ministry, Department, and Agency (MDA) must take responsibility by developing “bold, creative, and ambitious” revenue initiatives that align with their mandate and operational realities. According to him, the 2026 budget will be anchored on innovation-driven governance, fiscal discipline, and aggressive revenue expansion.
Infrastructure, Urban Renewal, and Economic Expansion
Beyond revenue plans, Governor Abiodun highlighted several development priorities for the coming fiscal cycle, including urban renewal and accelerated infrastructure development. A major focus will be the regeneration of Kara, near Isheri, a corridor that serves as one of the busiest entry points into the state from Lagos.
The governor said the redevelopment of Kara would give the axis a modern and befitting look consistent with Ogun’s reputation as the Gateway State. To ensure fairness and transparency, he announced the creation of an inter-ministerial committee that will oversee enumeration, compensation, and relocation processes for affected individuals and businesses.
According to Abiodun, the state is determined to execute the redevelopment in a way that is both humane and inclusive, ensuring that growth does not come at the expense of residents’ welfare.
“We remain focused on building a prosperous, modern Ogun State — one that reflects the ambition, discipline, and resilience of its people,” he added.
What You Should Know
Ogun has become one of Nigeria’s fastest-growing industrial zones, attracting investments across manufacturing, real estate, agriculture, logistics, and technology. In October 2025, Stellar Steel Company Limited, a subsidiary of China’s Galaxy Group and RSIN Group, signed a landmark agreement with the federal government to establish a $450 million steel plant in the state. The facility, expected to begin operations by mid-2026, will produce hot-rolled coil steel, iron doors, and gas cylinders — significantly reducing Nigeria’s dependence on imported steel products.
As Ogun pushes toward its N500 billion IGR target, the state’s success will depend on how effectively it leverages its industrial appeal, improves internal revenue systems, closes leakages, and sustains investor confidence. The coming fiscal year will test the depth of its reforms — and the strength of its ambition.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
