Seventeen Nigerian states are rated insolvent owing to generating less than10 per cent Internally Generated Revenues (IGR) in 2018 compared to their huge collections from the Federation Account Allocations Committee (FAAC) same year, Economic Confidential published on Sunday.
In its Annual States Viability Index (ASVI) on Sunday, the Economic Confidential said without the monthly disbursement from FAAC, many states are unviable, and cannot survive without the allocations, mostly from the oil sector.
The states generate IGR through Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDAs).
The IGR of the 36 states of the federation totalled N1.1 trillion in 2018 against N931 billion raked in 2018, showing an increase of N172 billion.
The report further indicates that the IGR of Lagos State of N382 billion is higher than that of 30 States put together whose Internally Generated Revenues are extremely low and poor compared to their allocations from the Federation Account.
Meanwhile, the Federal Capital Territory (FCT) Abuja, which is not a state but the nation’s capital generated N65 billion IGR against N29 billion it realised from FAAC in 2018.
Lagos State remained steadfast in its number one position in IGR with a total revenue generation of N382 billion compared to N260 billion fro federation account, amounting to 146 per cent in the 12 months of 2018.
Ogun State trailed after generating N84.55 billion IGR compared to FAAC of N93 billion representing 90 per cent; Rivers with N112 billion compared to FAAC of N237 billion representing 47 per cent and Kwara State with a low receipt from the Federation Account has maintained its impressive IGR by generating N23 billion compared to FAA of N81billion representing 28 per cent.
Others with impressive IGR include Edo with IGR of N28 billion compared to FAA of N112 billion representing 25 per cent; Kano, N44 billion compared to FAA of N183 billion representing 24 per cent; Enugu, N22 billion IGR compared to FAA of N92 billion representing 23 per cent; Ondo with IGR of N24 billion compared to FAA of N108 billion representing 22.77 per cent; Kaduna with IGR of N29 billion compared to FAA of N131billion representing 22.44 per cent while Delta State earned N58 billion IGR against FAA of N285 billion representing 20 per cent.
The report noted that 10 states recorded N808 billion impressive IGR, while the remaining states merely generated N295 billion in 2018.
While the report provides shocking discoveries, the states with less than 10 per cent IGR have remained 17 as in the previous year 2017.
It added: “The poor states may not stay afloat outside the Federation Account Allocation due to socio-political crises including insurgency, kidnapping, armed banditry and herdsmen-farmer clashes.
“Other states lack foresight in revenue generation drive coupled with arm-chair governance.
“The states that may not survive without the Federation Account due to poor internal revenue generation are Ebonyi which realized a meagre N6.14 billion compared to N76 billion it received from the Federation Account Allocation (FAA) in 2018 representing about 7.98 per cent; Bayelsa with IGR of N13.6 billion compared to FAA of N192 billion representing 7.10 per cent.
Other states are “Taraba N5.96 billion compared to FAA of N88 billion representing 6.77 per cent; Adamawa with IGR of N6.2 billion compared to N97 billion of FAA representing 6.77 per cent and Borno with IGR of N6.52 billion compared to N122 billion of FAA representing 5.3 per cent within the period under review.
“The major poor internal revenue earners are Katsina which generated N6.9 billion compared to FAA of N138 billion representing 5.03 per cent; Yobe N4.48 billion compared to FAA of N89 billion representing 4.86 per cent and lastly Kebbi N4.88 billion IGR compared to FAA of N101 billion representing 4.88 per cent.”
ASVI’s report further showed that only three states in the entire Northern region have IGR above 20 per cent in comparison to their respective allocations from the Federation Account. They are Kwara, Kano and Kaduna.
Meanwhile, seven states in the South which recorded more than 20 per cent IGR in 2018 are Lagos, Ogun, Rivers, Edo, Enugu, Ondo and Delta States.
The report stated that Akwa Ibom State was among the four poorest Internally Generated Revenue in the Southern part of Nigeria, generating less than 10 per cent compared to its huge allocations from Federation Account Allocations in 2018.
Other states with poorest IGR are Ekiti, Ebonyi and Bayelsa, the report stated.
Similarly, 13 Northern States: Benue, Nasarawa, Gombe, Zamfara, Niger, Bauchi, Jigawa, Taraba, Adamawa, Borno, Katsina, Yobe and Kebbi States, recorded poorest IGR.
