President of the Nigerian Economic Society, Professor Adeola Adenikinju, has said that given the accomplishments of Governor Seyi Makinde in Oyo State over the past 80 months, he will score him a distinction.
Professor Adenikinju said this during an interview with The People’s Verdict.
His words: “I will give the governor a distinction, an A. He has done well. He can do more, but he has done relatively well.”
He added, “I will say he is a performer. He doesn’t talk too much, but he performs.”
Substantiating his verdict, Adenikinju lauded the governor’s efforts in improving the state of infrastructure in the state.
He said, “The governor deserves a lot of kudos. Nigeria has gone through a lot of challenges which affected the economies of many parts of the world. If you look at the national statistics, at some point, government revenue actually declined because of revenue challenges. But in the midst of all of that, in Oyo State, you see a lot of infrastructural development; you see a lot of investment flowing in. So, I think the governor is on the right track.
“Most states in Nigeria are dependent on FAAC, which comes from the federal government. And in situations where there are challenges that affect federal government revenue, that will also have an impact on what the state has. But as I said, if you look at Oyo State, the state has been able to do quite well under Governor Makinde. As an economist, I know that infrastructure plays a significant role in economic growth. With what he is also doing in the area of energy, I know that very soon Oyo State will be able to boast of a good supply of electricity, which will further enhance economic growth.”
According to the University of Ibadan Economics professor, Oyo State has been attracting a lot of investments.
He said, “If you drive around Ibadan, you will see a lot of activities, even at night. You will see some economic activities being driven by new investments. The state government is making its own investments; the private sector is also making its own investments. So, when you combine the two, I think Oyo State is doing quite well.”
While praising the Oyo State Government’s employment generation efforts, Adenikinju said, “One of the areas that one should give kudos to the governor for is in the area of timely payment of salaries. When you employ more hands, when you pay people, and you do not owe contractors, you are boosting their purchasing power. Employing more people is a good decision. It will also reduce unemployment, which we know is a major challenge in the country now. That will also reduce poverty because when you get income, it enhances your purchasing power, and that would also have an impact on poverty. Remember that those who are employed now will support those who are not employed. So, employing the people has a direct and indirect impact on the people.”
The NES president equally lauded Governor Makinde’s strategy of not raising tax rates in the state but widening the tax net, saying it is the best vis-à-vis the nation’s current economic situation.
“Tax is compulsory. So, even before you get your salary, the tax has been deducted. If the governor has been able to keep taxes at the same level over the years, that means that as people’s income increases, their purchasing power also increases, and that will have a positive impact on economic activities. It is better to expand the tax base than to increase the tax rate. Tax base means that you bring more people, potential taxpayers who are currently not paying, into the tax net. So, you create incentives to formalise the informal sector and bring into the tax net those who are not paying tax. So, you increase your tax revenue without necessarily increasing your tax rate.
“Given the economic situation in Nigeria today, a lot of people believe that this is not the time to increase tax rates but to create incentives to widen the tax net. I guess that is what the governor is doing.”
