The Osun State Auditor-General, Kolapo Idris, has recommended the suspension of overhead fund releases to ministries that fail to properly account for funds previously allocated to them.
The recommendation was contained in the Auditor-General’s report on the financial accounts of the Osun State Government for the year ended December 31, 2025.
Idris presented the report on Monday at an audit forum in Osogbo attended by heads of Ministries, Departments and Agencies (MDAs), civil society representatives, professional bodies and other stakeholders.
According to the Auditor-General, the audit uncovered several issues, including negligence by some internal auditors, failure to prepare and maintain relevant accounting documents, fictitious expenditures, incorrect computation of statutory deductions and abuse of approval and payment procedures.
He therefore called for improved training for accountants, account officers and internal auditors to strengthen financial management and service delivery across the state.
Among his recommendations, Idris said:
“Direct stoppage of release of overhead to ministries that have not rendered proper accountability as noticed by the Auditor-General.”
He also urged strict compliance with approved standards for the preparation of accounting books and records.
The Auditor-General further recommended strengthening the Inspectorate and Management Services Department in the Office of the Accountant-General to improve efficiency and effectiveness.
Idris acknowledged the increase in revenue accruing to Osun from the Federation Account but urged the state government to intensify its revenue drive, particularly within the informal sector.
He said thousands of informal businesses and operators remained outside the state’s revenue net and should be properly captured.
He also identified motor parks as an area requiring improved revenue monitoring.
According to him, existing arrangements provide for 70 per cent of revenue generated from motor parks to accrue to the state government, while operators retain 30 per cent.
He alleged that the state had not been receiving the expected share from some motor parks.
Idris said the government should strengthen the collection system by producing official receipts and ensuring proper monitoring of collections.
He added that the government should provide basic facilities such as security, toilets and electricity at motor parks as part of efforts to improve their operations.
Osun Records N363.6bn Revenue Inflow
The Auditor-General disclosed that Osun State recorded a total revenue inflow of N363.63 billion in 2025.
The revenue comprised FAAC receipts, Value Added Tax, Internally Generated Revenue, capital receipts and funds from development partners.
Total expenditure during the year stood at N385.68 billion, covering personnel, overhead, other recurrent and capital expenditures.
The state’s opening balance for 2025 was N60.21 billion, while the closing balance stood at N38.15 billion.
Idris maintained that, despite the issues identified during the audit, Osun State had over the years made progress in complying with financial regulations and appropriation laws.
He called for stronger collaboration among government agencies and other stakeholders to improve accountability and develop a more robust Internally Generated Revenue system for the state.
