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Osun State Economy 2026

Key industries, IGR performance, revenue dependency and economic ranking among Nigeria's 36 states. For full appropriation figures see the Budget page.

🏭 Osun State — Economic Profile

South West
⚖ Mixed IGR & FAAC Revenue

The economy of Osun State is driven by agriculture, education, mining, and small-scale industries. Major agricultural products include cocoa, cassava, maize, and yam. The state also benefits from tourism and cultural festivals.

Key Industries
Commerce & Trade Banking & Finance Entertainment Technology Manufacturing Real Estate

💰 Revenue Dependency — IGR vs FAAC

2026
A state that earns a high percentage of its revenue from IGR (taxes, levies, fees) is fiscally independent. A state that relies heavily on FAAC (monthly federal oil revenue share) is vulnerable to oil price shocks and federal revenue declines.
47.4%
52.6%
IGR: ₦199.6B — 47.4% of revenue FAAC: ₦221.7B — 52.6% of revenue

Osun has a balanced revenue mix — roughly 47.4% from IGR and 52.6% from FAAC. Growing the IGR share is a key fiscal priority.

IGR
₦199.6B
47.4% of revenue
#9 in Nigeria
FAAC Allocation
₦221.7B
52.6% of revenue
Total Budget
₦723.4B
2026 appropriation
Full breakdown →
Budget Per Capita
₦153,915
Pop: 4.70M

For full appropriation figures — sector allocations, CapEx breakdown and year-on-year budget history:

Osun Budget →

🏗 Spending Priorities

2026 — summary

Where Osun State directs its public spending — relative allocation across key sectors from the 2026 budget.

Education ₦87.2B
12.1% of total budget
Infrastructure ₦289.0B
40% of total budget
Health ₦59.2B
8.2% of total budget
Security ₦14.2B
2% of total budget

See exact naira figures per sector, debt service and security allocations:

Full Sector Breakdown →

📈 IGR Revenue Trend

2 years
Year IGR FAAC IGR % Total Budget
2026 Latest ₦199.6B ₦221.7B 47.4% ₦723.4B
2024 ₦28,000 ₦210,000 11.8% ₦268,000

🏆 Nigeria State IGR Ranking

Internally Generated Revenue
# State IGR Relative
1 Lagos ₦3.1T
2 Rivers ₦1.2T
3 Enugu ₦870.0B
4 Ogun ₦509.9B
5 Bayelsa ₦450.0B
6 Niger ₦326.9B
7 Niger ₦326.9B
8 Abia ₦223.4B
9 Osun ₦199.6B
10 Bauchi ₦180.0B

❓ FAQs — Osun State Economy

The economy of Osun State is driven by agriculture, education, mining, and small-scale industries. Major agricultural products include cocoa, cassava, maize, and yam. The state also benefits from tourism and cultural festivals.
Osun State's economy is driven by: Commerce & Trade, Banking & Finance, Entertainment, Technology, Manufacturing. The state generates ₦199.6B in IGR annually, representing 47.4% of its total revenue.
Osun State generated ₦199.6B in IGR in 2026, representing 47.4% of total revenue. The remaining 52.6% came from FAAC (federal allocations). Osun ranks #9 of 38 states by IGR.
Osun State ranks #9 of 38 states by Internally Generated Revenue (IGR) and #28 by total budget size. Like most Nigerian states, it relies significantly on FAAC allocations from the federal government.
IGR (Internally Generated Revenue) is money a state collects from within its own economy through taxes, levies and fees — without depending on the federal government. FAAC (Federation Account Allocation Committee) distributes shared national revenue — mainly from oil sales and VAT — monthly to all tiers of government. States with high IGR like Lagos are fiscally independent, while most states depend on FAAC for over 60-80% of their revenue.
Osun State is not classified as a major oil-producing state and does not receive the 13% derivation fund. Its economy depends on agriculture, commerce, solid minerals and services, with federal FAAC allocations as the primary government revenue source alongside IGR.
Data note: IGR and FAAC figures are sourced from published FAAC distribution reports and state appropriation laws. Population figures are NBS estimates. All amounts in Nigerian Naira (₦). For the most current data refer to the OAGF and individual state ministry of finance publications.