Revenue Diversification Through Non-Oil Taxation in Ondo State

This study examines the potential for non-oil tax revenue diversification in Ondo State, South West Nigeria, a state with a mixed economy anchored in cocoa, timber, and offshore oil production. With declining oil revenue receipts and increasing fiscal pressure, Ondo State has sought to strengthen its non-oil IGR through personal income tax, business premises levies, and entertainment taxes. This research employs a descriptive and documentary design, analysing Ondo State IGR reports, budget frameworks, and comparative data from the National Bureau of Statistics spanning five fiscal years. Primary data supplement this through interviews with ten officials from the Ondo State Internal Revenue Service. Key revenue diversification options, including tourism taxation, environmental levies on forestry operators, and agricultural income taxes, are evaluated for feasibility and administrative cost. Analysis uses trend analysis, thematic review of interview data, and simple comparative tables. The study expects to find that PAYE from civil servants constitutes a disproportionate share of non-oil IGR, with significant untapped potential in the private sector and natural resource-based taxes. Recommendations include establishing a dedicated revenue intelligence unit within the state IRS, harmonising environmental levies with the Ondo State Environmental Protection Agency, and leveraging the state's cultural tourism assets as a new tax base. Keywords: revenue diversification, non-oil taxation, Ondo State, IGR, fiscal sustainability.