Osun VAT Sparks Political Showdown as APM Criticises Adeleke’s Economic Performance

The Allied Peoples Movement (APM) in Osun State has taken aim at Governor Ademola Adeleke’s administration, criticizing it for what it described as the state’s poor Value Added Tax (VAT) performance in the first quarter of 2025.

In a statement released on Sunday and signed by Osun APM Chairman Adewale Adebayo, the party expressed concern over Osun’s position at the bottom of VAT generation among South West states. APM referenced data from StatiSense to support its claim, highlighting that Osun generated just ₦5.95 billion in VAT, the lowest in the region, despite receiving ₦21.23 billion in federal allocation—more than some better-performing states like Ekiti.

The APM said the disparity underscores a failure of productivity and innovation under Adeleke’s leadership, accusing the state government of over-relying on federal funds while contributing minimally to the national revenue pool. It urged the PDP-led government to revive the economy by supporting small businesses, modernizing agriculture, and improving the business climate.

In response, the Osun chapter of the Peoples Democratic Party (PDP) dismissed APM’s claims as “laughable.” PDP spokesperson Oladele Bamiji argued that comparing Osun to industrial powerhouses like Lagos or Ogun was unreasonable. He said Adeleke inherited a deeply troubled economy in 2022, burdened by debt, abandoned infrastructure, and a demoralized business community after 12 years of APC rule.

Bamiji defended Adeleke’s reform efforts, stating that the governor’s focus on empowering SMEs, artisans, and digital entrepreneurs is already yielding results—evident in both VAT growth and the state’s improving GDP. He labeled APM’s criticisms as dishonest, suggesting they were politically motivated and lacked sound economic logic.

The PDP further accused APM of ignoring the context of Adeleke’s inherited challenges and noted that expecting dramatic economic change within two years of governance was unrealistic. It urged citizens to view the situation with critical thinking and rely on data, not politically motivated narratives.

Meanwhile, APM has called for a comprehensive internal audit of state revenue systems and the implementation of a VAT strategy that would transition Osun into a net contributor to the federal purse. The PDP, however, reiterated its commitment to long-term reforms and declared that the state’s economic recovery under Adeleke was already underway, dismissing opposition criticisms as mere distractions.