Edo State’s economy has experienced significant growth, with its Gross Domestic Product (GDP) increasing from ₦2.03 trillion in 2016 to ₦4.09 trillion in 2024, according to 2024 Edo State Transition Committee Report prepared by the administration of former Governor Godwin Obaseki. The report attributes this increase to Governor Godwin Obaseki’s focus on industrialization, fiscal reform, and digital transformation. It seems the 830-page transition report is been delibrately circulated online in response to claims by the new Edo State Governor Monday Okpebholo that the Obaseki administration left “scanty” details of the assets of the state.
The report, which outlines achievements and pending challenges for the incoming administration, highlights key shifts in Edo’s economy, including rising revenue from local taxation, expanded manufacturing capacity, and new transport infrastructure. The document presents Edo as one of Nigeria’s more economically stable sub-national governments, with a strategy to reduce its reliance on federal allocations and encourage local production.
Industrialization as a Key Driver of Growth
A significant part of Edo’s GDP growth is linked to its focus on industrialization, according to the Transition Committee Report. The state’s Edo State Oil Palm Program (ESOPP) is highlighted as a key initiative, leading to the cultivation of over 70,000 hectares of oil palm. The report notes that this effort has made Edo one of Nigeria’s largest oil palm producers and attracted more than $2.5 billion in foreign direct investment.
The development of the Iyanomo Free Trade Zone and the Edo Industrial Park created new hubs for manufacturing and export activity. The presence of companies like Dangote Group and BUA Group, involved in the cement, agriculture, and construction industries, has strengthened the state’s production capacity. The establishment of modular refineries and ethanol production plants is also noted as a key factor in GDP growth.
Revenue Reforms and Internally Generated Revenue Growth
Edo State’s financial position has shifted, with less dependence on federal allocation and a stronger focus on raising Internally Generated Revenue (IGR). The Transition Committee Report shows that IGR rose from ₦23 billion in 2016 to ₦65 billion in 2023, driven by a shift toward automated tax collection systems.
The rollout of the Edo Revenue Administration System (ERAS) digitized the process of collecting taxes and levies. As a result, the number of registered taxpayers grew from 131,868 in 2016 to 372,968 in 2023, according to the report. The system also reduced leakage in revenue collection and improved transparency.
Looking ahead, the report projects that Edo’s IGR could rise to ₦100 billion by 2025 and ₦250 billion by 2028 if current reforms are sustained. This shift in revenue collection has enabled the government to support public infrastructure projects and reduce reliance on monthly federal allocations, a critical goal for many Nigerian states seeking financial autonomy.
Digital Transformation and Governance Reforms
The introduction of e-governance platforms like EdoGov and the establishment of a Tier 3 Data Center were described as essential parts of Edo’s administrative overhaul. The Transition Committee Report points to the digitization of payroll, human resources, and procurement systems as key reforms that have reduced waste and improved accountability.
According to the report, the deployment of over 4,892 kilometers of fiber-optic cable across Edo’s 18 local government areas enabled wider broadband access, supporting Edo’s goal of becoming a “smart state.” The report states that ₦60 billion in public expenditure savings were achieved as a result of these reforms.
The investment in digital skills for Edo’s workforce was also noted in the report. Through the Edo Innovates program, over 50,000 Edo residents were trained in digital skills aimed at preparing them for employment in e-commerce, software development, and customer service outsourcing.
Infrastructure Investments and Economic Impact
Edo’s approach to infrastructure development has also contributed to economic activity, according to the Transition Committee Report. Between 2016 and 2024, Edo State constructed or rehabilitated 746 roads spanning 1,040 kilometers. This work included new rural-urban connections, improving access to key markets and social services.
Major projects, such as the Benin River Port and the Edo AMES Inland Dry Port, were flagged as significant long-term investments. These projects aim to position Edo as a logistics and export hub for West Africa. The Central Bus Terminal and the introduction of water transport services for riverine communities are also cited as key developments that reduce travel time and improve connectivity.
The report suggests that continued investment in these projects will be crucial for Edo’s ambition to become a regional trade and logistics hub.
Job Creation and Human Capital Development
The Transition Committee Report outlines significant progress in job creation, with over 300,000 jobs created under the EdoJOBS initiative. The program, which provides skills training and job placements, has been supported by the establishment of seven job centers across the state.
In addition, the state provided ₦2 billion in loans and grants for small and medium enterprises (MSMEs). These loans supported local businesses in sectors such as agriculture, manufacturing, and services, with particular emphasis on women-led enterprises.
The report also highlights improvements in healthcare access through the Edo Health Insurance Scheme (EDOHIS), which now covers more than 1 million residents. Access to affordable healthcare was made possible in part by the increase in IGR, as noted earlier in the report.
Challenges and Risks Identified in the Report
Despite its economic gains, Edo State still faces risks and challenges. The 2024 Transition Committee Report notes that currency volatility has affected debt servicing costs for Edo’s foreign-denominated loans. Since Nigeria moved to a floating exchange rate, the cost of repaying foreign loans has risen, which could strain the state’s fiscal position.
Another ongoing challenge is the formalization of Edo’s large informal economy. While progress has been made in registering informal businesses under the Edo Revenue Administration System (ERAS), the report calls for further measures to encourage the inclusion of informal enterprises into the tax base.
What Lies Ahead for Edo’s Economy?
The 2024 Edo State Transition Committee Report provides a roadmap for Edo’s incoming administration. If policies established by the outgoing administration are maintained, the report projects that Edo’s GDP could increase by another 50% by 2028. Continued investment in infrastructure, industrial production, and human capital development will be critical for sustaining this growth.
The report advises the next administration to prioritize the completion of key projects, such as the Benin River Port and the Edo AMES Inland Dry Port, which are expected to boost export capacity and logistics competitiveness. The report also emphasizes the importance of public-private partnerships (PPPs), as Edo has seen significant results through PPPs in industrial development and agriculture.
The report concludes that Edo’s progress in areas like revenue collection, digital transformation, and industrial expansion could be replicated by other Nigerian states looking to achieve greater economic independence. “These reforms, if sustained, offer a pathway for sustained sub-national growth,” the report states.
The GDP increase from ₦2.03 trillion to ₦4.09 trillion underscores the economic changes Edo State has experienced under Governor Obaseki’s administration. The success factors outlined in the 2024 Edo State Transition Committee Report — industrialization, tax reform, digital transformation, and infrastructure development — highlight areas where the state achieved measurable growth.
However, the report also outlines challenges related to currency fluctuations, debt repayment, and the need for further formalization of the informal economy. As Edo transitions to new leadership, the question of whether these policies will be sustained remains crucial.
The new administration will face the dual challenge of maintaining the momentum of existing reforms while navigating the risks outlined in the report. If successful, Edo’s economic trajectory could serve as a model for other sub-national governments in Nigeria seeking economic self-sufficiency and reduced reliance on federal allocations.
