The Auditor-General of Osun State, Kolapo Idris, has advocated for enhanced oversight on overhead funding allocated to ministries, departments, and agencies (MDAs) that fail to demonstrate proper financial accountability. This recommendation was made during the presentation of his audit report on the state's financial activities for the year ending December 31, 2025, at an audit forum held in Osogbo, the state capital.

Idris's report highlighted several financial and administrative issues that prompted audit queries. Among the concerns raised were negligence by some internal auditors, the absence and inadequate preparation of accounting documents, fictitious expenditures, and incorrect calculations of statutory deductions. Furthermore, he pointed out the misuse of approval and payment processes as significant problems identified in the audit exercise.

To mitigate these challenges, Idris proposed several measures, including enhanced training programs for accountants, account officers, and internal auditors to boost their efficiency and service delivery. He specifically recommended the immediate suspension of overhead funding to any ministries that have not provided proper financial accountability as mandated by the Auditor-General’s office.

Idris also emphasized the necessity for strict adherence to standards governing the preparation of accounting records. He called for a reinforcement of the Inspectorate and Management Services Department within the Accountant-General’s Office to ensure compliance and accountability.

Despite the challenges, Idris acknowledged that Osun State has made commendable progress in adhering to financial regulations and appropriation laws over the years. He noted an uptick in revenue from the Federation Account, but stressed the need for a more robust strategy to increase internally generated revenue, particularly from the informal sector. "Thousands of informal sectors need to be captured. What I expect of internal revenue is to make sure they are all well captured so that they can easily take whatever is due to the government from them," he stated.

On the subject of revenue collection at motor parks, Idris explained that operators are expected to remit 70% of their earnings to the state government while retaining the remaining 30%. He urged collaboration among relevant stakeholders to bolster revenue generation and enhance the financial stability of the state.

According to the Auditor-General’s report, Osun State recorded a total revenue inflow of N363,628,291,927.66 in 2025, which included allocations from the Federation Account, Value Added Tax, and other sources. In contrast, the total expenditure for the year was N385,682,554,674.77. The report also revealed that the state’s opening balance for 2025 was N60,205,607,471.63, while the closing balance dropped to N38,151,344,724.52.

The findings come amid an increase in Osun's Internally Generated Revenue, which surged from N25.3 billion in 2023 to N54.7 billion in 2024, as detailed in the state’s Financial Statements and Accounts for the year ending December 31, 2024.