Lagos State, the ‘Centre of Excellence’ has again, garnered an impressive Internally Generated Revenue, (IGR), under the Babajide Sanwo-Olu’s led administration, than other states of the federation put together.
In a report released by the Economic Confidential, an intelligence magazine, it is revealed from the fifth Annual States Viability Index (ASVI) published by the magazine, that, the Lagos State IGR, again came first among that of other States whose Internally Generated Revenues are extremely low and poor when compared to the allocations given to them by the Federal Government.
While Lagos State remains number one, eight (8) States of the federation were said to be relying on Federation Account Allocations (FAA), as they cannot probably survive without the FG support.
These insolvent States (States that can’t survive without FG’s allocations) Internally Generated Revenues (IGR) for year 2020 were said to be far below 10% of the expected amount from the Federation Account Allocations (FAA).
The eight states that cannot survive without the Federation Account Allocations, due to their extremely poor Internal Revenue Generation are Bayelsa, the home state of former President Goodluck Jonathan, followed by Jigawa, Katsina, the home state of President Muhammadu Buhari, and Adamawa.
Others include Yobe, the home state of Senate President Ahmed, Niger, Taraba and Benue; while Borno State narrowly escaped as it generated N11.57bn IGR compared to FAA of N115bn representing 10% more in 2020 which was more than 3% over its 7% last year.
These poor states with low IGR, may not stay afloat outside the monthly allocations from the Federation Account. This is due to some of the state’s inability to attract investors because of their socio-political and economic crises including insurgency, kidnapping, armed banditry, and herdsmen-farmers clashes.
Lagos State, the ‘Centre of Excellence’, remained steadfast in its number one position with a total revenue generation of N418bn compared to FAA of N299bn which translate to 139% in the twelve months of 2020; followed by Rivers State, with N117bn IGR, compared to its FAA of N198bn representing 58%; Ogun State with N50bn, compared to FAA of N88bn, representing 57%.
Also, Kaduna State garnered N50bn IGR, compared to FAA of N124bn representing 40%; Oyo State N38bn IGR, compared to FAA of N127bn representing 29.7% and Anambra State generated N28bn IGR, compared to FAA of N94bn representing 29.6%.
The total amount of the Internal Generated Revenues, IGRs, of the 6 (six) States considered to be most viable in 2020, is N695bn; compared to other 30 States put together with less than N600bn. The figures are as computed by the Economic Confidential Annual States Viability Index (ASVI).
Other States with impressive IGRs include, Edo with IGR of N27bn, compared to FAA of N99bn representing 27%; Enugu with IGR of N23bn, compared to FAA of N87bn representing 27%; Ondo with IGR of N24bn, compared to FAA of N97bn representing 25.6% while Kwara State earned N19bn IGR against FAA of N77bn representing 25.5%.
The Federal Capital Territory (FCT) Abuja which is not a state, but the nation’s capital generated N92bn IGR against N30bn from the Federation Account in the same period.
According to the Economic Confidential report, the IGRs of the 36 states of the federation, totaled N1.3 trillion in 2020, the same figure as that of 2019.
States IGRs, are the amounts generated by each state of the federation through Pay-As-You-Earn (PAYE) Tax, Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDA)s.