Why 15 states may go bankrupt over low IGR

According to reports, Fifteen States may go bankrupt as their Internally Generated Revenue (IGR) in 2015 were far below 10 per cent of their Fed­eration Account Allocations (FAA) from June 2015 to May 2016.

nigerian governors2

The states that may not sur­vive without the Federation Account due to poor internal revenue include Yobe which generated meagre N2.2 bil­lion, compared to a total of N57.4 billion it received from the Federation Account Allo­cation (FAA) from June 2015 to May 2016, representing about 3.9 per cent. Others are Zamfara with IGR of N2.7 billion, compared to FAA of N56.6 billion represent­ing 4.8 per cent; Ekiti N3.2 billion compared to FAA of N50.460 billion representing 6.5 per cent; Borno with N3.5 billion compared to N78.7 billion of FAA representing 4.5 per cent and Kebbi with IGR of N3.5 billion compared to N64.8 billion of FAA rep­resenting 5.5 per cent within the period under review.

Other poor internal rev­enue earners are Taraba which generated N4.1billion compared to FAA of N56 billion, representing 6.4 per cent; Nassarawa N4.4 billion compared to FAA of N50.5 billion, representing 8.5 per cent; Adamawa N4.4 billion compared to FAA of N62.2 billion, representing 7.1 per cent; Gombe N4.7 billion compared to FAA of N49.8 billion, representing 9.6 per cent; Jigawa N5 billion, com­pared to FAA of N73 billion, representing 7 per cent; Bau­chi N5.3 billion compared to FAA of N72.6 billion, rep­resenting 7.4 per cent; Imo N5.4 billion, compared to FAA of N71.6 billion, repre­senting 7.6 per cent; Katsina N5.7 billion compared to FAA of N88.8 billion, represent­ing 6.5 per cent; Niger N5.9 billion compared to FAA of N74.8 billion representing 8 per cent and Sokoto N6.2 billion compared to FAA of N69.7 billion representing 8.9 per cent.

A report by Economic Confidential magazine fur­ther indicates that the IGR of Lagos State of N268 billion is higher than that of 32 states combined together exclud­ing Rivers, Delta and Ogun whose IGRs are very im­pressive. The 32 other states merely generated a total of N257 billion in 2015.

Also, the latest report on IGR reveals that only La­gos State generated more revenue than its allocation from the Federation Ac­count by 150 per cent and no other state has up to 100 per cent IGR to the federal largesse.

The IGR of the 36 states of the federation totalled N682.67 billion in 2015 as compared to N707.85 billion in 2014, a drop of N25.18 bil­lion or a minus 3.56 per cent.

According to the report, 15 states may go bankrupt and may not stay afloat outside the Federal Account Alloca­tion due to lack of foresight in revenue generation drive.

Meanwhile Lagos State re­tains its number one position in IGR with a total revenue generation of N268.22 bil­lion last year. It is followed by Rivers State N82.10 billion, Delta State N40.80 billion, Ogun State N34.59 billion and Edo state N19.11billion.

However, these five states look good to be on top of the current economic challenges. They are: Enugu, Oyo, Anam­bra, Akwa Ibom and Kano with N18.08 billion, N15.66 billion, N14.793 billion, N14.791billion, and N13.611 billion respectively.

The Economic Confiden­tial report further showed that the richest northern state is Kano which is the only state from the North to be among the 10 highest IGR earners while the rest are southern states.

Advertisements

7 Comments

  1. This is the reason the north is against resource control, because all the northern states will collapse without federal allocation

  2. Now we know the parasite-states of Nigeria. And to think most of these guys are against developing the Niger delta, the very source of their life lines. Something must give, enough of this.

  3. Yes, without the free Oil money. Certainly, Nigeria paying for the deliberate degradation and insult of the Oil bearing States and their people. They claim right to rule, whereas, they are only consumers and still holders of Oil Well or Blocks developed with Nigeria Oil Money and go on bragging as Billionaires etc. Let those who milk Nigeria in those states bring their money for them to spend. The little left of the Oil money is desperately used to diversifier the economy. After that, what next for the people whose land and environment has been destroyed beyond repair. Would they begin to beg? Certainly, in this wicked world, the deprived would remain a torn on the flesh of those who impoverish others. So, far from it, they would not enjoy their ill gotten wealth at the expense of others.

  4. Let them appoint certificate or Diploma in Islamic studies as Director of Finance in the diversified industries and farms and see how they will succeed. The over 50 Textile Factories and Ajaokuta Steel mills, NEPA, NPA, DELTA Steel, all the Federal Merchant Banks and Corporates that have ran aground are proof of their laziness/opportunism call ‘FEDERAL CHARACTER’. The very few that are brilliant are under the oppression of illiterate traditionalist who dictates what the educated must do. Going forward will be difficult even if all the diversification and money pumped into them.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.