By Wole Oladimeji
Value Added Tax (VAT) is a consumption tax imposed on goods and services at various stages of production or distribution. It is a vital revenue source for states, primarily generated from sectors such as hotels, guest houses, beer parlors, hospitality centers, nightclubs, lounges, shopping malls, ceremonies, and MICE (Meetings, Incentives, Conferences, and Exhibitions). States with robust tourism, hospitality, and entertainment industries tend to lead in VAT generation.
The recent revelation that Ekiti State is generating more VAT than Ogun State is both groundbreaking and remarkable. This is particularly so because, by conventional VAT-generating indices—such as population size, industrialization, hospitality sector capacity, proximity to Lagos, and access to seaports—Ekiti cannot be considered comparable to Ogun.
Yet, this extraordinary achievement underscores the visionary leadership of Governor Biodun Abayomi Oyebanji, the diligence of the Ekiti State Internal Revenue Service (EKIRS), under the eagle eye of its Chairman ,Pastor Olaniran Olatona and the strategic branding initiatives of the Ekiti State Bureau of Tourism Development under Barrister Wale Ojo-Lanre.
Governor Oyebanji’s leadership has played a pivotal role in this milestone, especially through his strategic repositioning of EKIRS. By placing the agency in the capable hands of a seasoned and pragmatic expert, Pastor Olaniran Olatona, he ensured the introduction of innovative revenue strategies, including a system that simplifies tax payments, making it a seamless and less burdensome process for taxpayers. This approach has not only increased compliance but also boosted revenue generation.
The growth of Ekiti’s VAT revenue is a direct reflection of the state’s flourishing tourism and hospitality sectors. The “Visit Ekiti” campaign, championed by the Ekiti State Bureau of Tourism Development, has effectively rebranded Ekiti as a top-tier destination. This campaign has not only attracted visitors from across Nigeria but has also encouraged residents to engage with and invest in the state’s rich cultural and natural attractions, further spurring economic activities.
Under Governor Oyebanji’s administration, Ekiti has witnessed a surge in tourism-related services, conferences ,religious programmes ,festivals which lured patrons to Hotels, restaurants, event centers, entertainment hubs, and other hospitality outlets have reported increased patronage, creating a ripple effect that drives demand for VATable goods and services. This economic transformation highlights the state’s commitment to leveraging its cultural and natural assets for sustainable development.
Ekiti’s impressive VAT performance signifies a broader economic boom. The rising consumption of goods and services—propelled by tourism, hospitality, and entertainment—has elevated the state’s revenue profile. As more visitors flock to Ekiti for leisure, business, and events, the demand for VATable items grows exponentially, further enriching the state’s coffers.
This achievement positions Ekiti as a model for other states, demonstrating how strategic investments in tourism, branding, and infrastructure can yield significant economic benefits. Ekiti’s focus on its cultural heritage, scenic landscapes, and hospitable environment has positioned it as a competitive destination in Nigeria’s tourism ecosystem.
To maintain and amplify this growth, Ekiti must continue to prioritize tourism, hospitality, and entertainment. Expanding MICE activities, hosting more cultural and entertainment events, and enhancing tourism infrastructure are critical next steps. A thriving tourism industry not only boosts VAT revenue but also creates employment, empowers local businesses, and improves the overall quality of life for residents.
The lesson is clear: the more people come to Ekiti, the more tourism activities thrive, the more entertainment events occur, and the higher the demand for VATable goods and services. This virtuous cycle underscores the importance of sustained efforts in tourism promotion and economic development.
Kudos to Governor Biodun Abayomi Oyebanji for his visionary leadership and unwavering commitment to Ekiti’s economic advancement. Congratulations to EKIRS for their efficiency and dedication to revenue generation. A special commendation goes to the Ekiti State Bureau of Tourism Development for their relentless efforts in rebranding and promoting the state.
Ekiti is undeniably on the rise, and the evidence is clear for all to see. With continued collaboration and innovation, the state is well on its way to achieving even greater heights.
God bless Governor Biodun Abayomi Oyebanji, the good people of Ekiti State, and its vibrant tourism sect
….Wole Oladimeji is the former Chief Press Secretary to the Deputy Speaker of the House of Representatives, Alhaji Lasun Yusuf, and the Publisher of The Gong newspaper.