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    Internally Generated Revenue of 36 Nigerian states totalled N931bn in 2017 as Lagos leads with N333 bn

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    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    The Economic Confidential has released its Annual States Viability
    Index (ASVI) which shows that 17 states are insolvent as their
    Internally Generated Revenues (IGR) in 2017 were far below 10 per cent
    of their receipts from the Federation Account Allocations (FAA) in the
    same year.

    The index proved that without the monthly disbursement from the
    Federation Account Allocation Committee (FAAC), many states remain
    unviable, and cannot survive without the federally collected revenue,
    mostly from the oil sector.

    The IGR are generated by states through Pay-As-You-Earn Tax (PAYE),
    Direct Assessment, Road Taxes, and revenues from Ministries,
    Departments and Agencies (MDA)s.

    The report by this economic intelligence magazine further indicates
    that the IGR of Lagos State of N333 billionn is higher than that of 30
    States put together whose internal revenues are extremely low and poor
    compared to their allocations from the Federation Account.

    The states with impressive over 30 per cent IGR apart from Lagos are
    Ogun, Rivers, Edo, Kwara, Enugu and Kano states who generated N607
    billion in total, while the remaining states merely generated a total
    of N327 billion in 2017.

    Recently the magazine published the total allocations received by each
    state in Nigeria from the Federation Account Allocation (FAA) between
    January to December 2017. The latest report on IGR reveals that only
    Lagos and Ogun States generated more revenue than their allocations
    from the Federation Account by 165 per cent and 107 per cent
    respectively and no any other state has up to 100 per cent of IGR to
    the federal largesse.

    The IGR of the 36 states of the federation totalled N931bn in 2017 as
    compared to N801.95 billion in 2016, an increase of N130 billion.

    From the report, the states with less than 10 per cent IGR have jumped
    to 17 from 14 states in the previous year 2016. The poor states may
    not stay afloat outside the Federation Account Allocation due to
    socio-political crises including insurgency, militancy, armed-banditry
    and herdsmen attacks. 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 Bauchi which realised a meagre
    N4.3 billion compared to a total of N85 billion it received from the
    Federation Account Allocation (FAA) in 2017 representing about 5 per
    cent; Yobe with IGR of N3.59 billion compared to FAA of N67 billion
    representing 5.33 per cent; Borno N4.9 billion compared to FAA of N92
    billion representing 5.41 per cent; Kebbi with IGR of N4.39 billion
    compared to N76 billion of FAA representing 5.77 per cent and Katsina
    with IGR of N6 billion compared to N103 billion of FAA representing
    5.8 per cent within the period under review.

    Other poor internal revenue earners are Niger which generated N6.5
    billion compared to FAA of N87 billion representing 7.43 per cent;
    Jigawa N6.6 billion compared to FAA of N85 billion representing 7.75
    per cent; Imo N6.8 billion compared to FAA of N85 billion representing
    8.1 per cent and Akwa Ibom N15 billion compared to FAA of N197 billion
    representing 8.06 per cent, Ekiti N4.9 billion compared to FAA of N59
    billion representing 8.38 per cent; Osun N6.4 billion compared to FAA
    of N76 billion representing 8.45 per cent, Adamawa N6.2 billion
    compared to FAA of N72.9 billion representing 8.49 per cent; Taraba
    N5.7 billion compared to FAA of N66 billion representing 8.70 per cent
    and Ebonyi N5.1 billion compared to FAA of N57.8 billion representing
    8 per cent.

    Meanwhile, Lagos State remained steadfast in its number one position
    in IGR with a total revenue generation of N333 billion compared to FAA
    of N201 billion which translate to 165 per cent in the twelve months
    of 2017. It is followed by Ogun State which generated IGR of N74.83
    billion compared to FAA of N69 billion representing 107 per cent.
    Others with impressive IGR include Rivers with N89 billion compared to
    FAA of N178 billion representing 50 per cent; Edo with IGR of
    N25billion compared to FAA of N75 billion representing 33 per cent.
    Kwara State however with a low receipt from the Federation Account has
    greatly improved in its IGR of N19 billion compared to FAA of N61
    billion representing 32 per cent while Enugu with IGR of N22 billion
    compared to FAA of N69 billion representing 32 per cent. Kano
    generated N42 billion compared to FAA of N143 billion representing 30
    per cent while Delta State earned N51 billion IGR against FAA of N175
    billion representing 29 per cent.
    Economic Confidential Annual State Viability Index (ASVI) 2017
    Ranking of States by Internally Generated Revenue (IGR) Compared to
    Federation Account Allocation (FAA) in 2017

    Table computed and designed by the Economic Confidential Magazine
    www.EconomicConfidential.com

    Table – Economic Confidential Annual State Viability Index ASVI 2017

    The Economic Confidential ASVI further showed that only three states
    in the entire Northern region have IGR above 20 per cent. They are
    Kwara, Kano, and Kaduna States. Meanwhile ten states in the South
    recorded over 20 per cent IGR in 2017. They are Lagos, Ogun, Rivers,
    Edo, Enugu, Delta, Cross River, Anambra, Oyo and Abia States.

    The states with the poorest Internally Generated Revenue of less than
    10 per cent in the South are Bayelsa, Ebonyi, Osun, Ekiti, Akwa-Ibom
    and Imo States while in the North we have Gombe, Zamfara, Taraba,
    Adamawa, Jigawa, Niger, Katsina, Kebbi, Borno, Yobe and Bauchi States

    Meanwhile, the IGR of the respective states can improve through
    aggressive diversification of the economy to productive sectors rather
    than relying on the monthly Federation Account revenues that largely
    come from the oil sector.

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