(DDM) – Edo State stakeholders have raised alarm over the persistent loss of internally generated revenue (IGR) to neighbouring Delta State, warning that the state’s financial stability could be undermined if urgent reforms are not implemented.
Diaspora Digital Media (DDM) gathered that the issue took centre stage at a high-level forum convened by the Edo State Internal Revenue Service (EIRS) in Benin City, where government officials, legal experts, and tax administrators deliberated on solutions.
Edo State Attorney General, Dr. Samson Osagie, directly linked the revenue leakages to lingering boundary disputes and population migration between Edo and Delta.
He emphasized that these structural challenges have allowed taxable individuals and businesses in Edo territory to remit revenues to Delta, weakening Edo’s fiscal base.
Dr. Osagie stressed that without swift intervention, the state could face a severe setback in funding key public services such as infrastructure, healthcare, and education.
EIRS Chairman, Barr. Oladele Bankole-Balogun, identified the Treasury Single Account (TSA) as a crucial safeguard in ensuring greater transparency and accountability in revenue collection.
He argued that reforms must be pursued aggressively to plug leakages and prevent misallocation of state funds.
Economic experts at the event recommended a multi-pronged approach that includes the ratification of boundary demarcations with Delta State, more stringent enforcement of tax laws, and improved cooperation between revenue agencies.
They insisted that securing Edo’s tax base is essential for sustaining its development agenda.
Background checks show that Edo and Delta States have long struggled with disputed boundaries, particularly in rural communities where economic activities like farming, trade, and oil-related ventures overlap. Such ambiguities have often led to confusion about jurisdiction, creating loopholes for tax evasion and misallocation.
Analysts note that Edo’s economic growth strategy under Governor Godwin Obaseki hinges heavily on strengthening internal revenue collection to reduce dependence on federal allocations.
Losing significant revenue to neighbouring states could jeopardize infrastructure projects, social programs, and industrialization efforts currently underway.
The forum also highlighted that beyond boundary disputes, weak enforcement mechanisms and lack of inter-agency data sharing contribute to the recurring loss.
Calls were made for digital tax systems, improved monitoring, and stronger penalties for violators who exploit jurisdictional loopholes.
Participants unanimously agreed that reclaiming lost revenue is not just a financial necessity but also a matter of fiscal sovereignty.
They urged the state government to prioritize negotiations with federal authorities and relevant boundary commissions to resolve disputes with Delta once and for all.
For Edo citizens, the stakes remain high. A secure tax framework would guarantee stable funding for essential services, while continued losses could deepen developmental gaps and weaken public trust in governance.
With officials now pushing reforms, the coming months will determine whether Edo State can protect its financial future and close the cracks that have drained its coffers for years.