Benin City, Edo State – Just two weeks after the inauguration of Governor-select Monday Okpebholo, Edo State is on the brink of a financial crisis. The state’s Internally Generated Revenue (IGR) is projected to plummet from N8 billion to N2 billion monthly.
This anticipated decline is attributed to ongoing conflicts over revenue collection. Allegedly, thugs hired by Okpebholo to influence the 2024 governorship election are now fighting for control of the state’s revenue points.
Under the previous administration of Governor Godwin Obaseki, Edo State saw a significant increase in IGR, thanks to comprehensive reforms in revenue administration. The state’s IGR grew by 370% over eight years, from N23.64 billion in 2016 to N67.29 billion by the third quarter of 2024. Monthly IGR reached N8 billion, with projections to close 2024 at N85 billion and 2025 at N120 billion.
This financial stability, achieved through technological advancements, is now under threat. The Okpebholo administration, in a bid to regain control, has temporarily halted revenue collection, leaving the state without income for over two weeks. Despite this suspension, thugs continue to collect revenues illegally, with none of the funds reaching state coffers.
The resulting financial paralysis has halted salary and pension payments and stalled ongoing construction projects. Crusoe Osagie, Media Adviser to the former governor, described the situation as a governance crisis, warning of the dire consequences for Edo State under Okpebholo’s leadership.
Osagie stated, “It is not surprising that Edo’s IGR is set to slump from N8 billion to N2 billion monthly due to turf wars among thugs over revenue collection. This is a governance crisis and an ominous preview of what Edo people should expect under the directionless and clueless government of the governor-select, Monday Okpebholo. The people of Edo State will ultimately suffer from the economic mismanagement that could define this administration.”
The situation remains tense as the state grapples with the fallout from these developments.
