State Viability Index; Lagos generates more IGR than 31
states combined
ON May 29, 2017 6:12 PM / IN Business , News / BY
Adekunle / Comments
State Viability Index; 36 States Generate N801bn IGR Against
N2.6trn from FAAC
…. …
… Economic Viable States: Lagos, Ogun, Rivers, Edo, Kwara
and Delta States
… Poor IGR States: Borno, Ebonyi, Kebbi, Jigawa
The Economic Confidential, the award winning Economic
Intelligence Magazine, has released its Annual States
Viability Index ( ASVI) which shows that fourteen States are
insolvent as their Internally Generated Revenues (IGR) in
2016 were far below 10% of their Federation Account
Allocations (FAA) in the same year.
Annual-State-Index
The index, carefully and painstakingly computed 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.
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 N302bn is higher
than that of 30 States put together excluding Lagos, Ogun,
Rivers, Edo, Kwara and Delta States whose IGRs are very
impressive at more than 30% each. The 30 other states
merely generated a total of N258bn in 2016.
Recently the magazine published the total allocation
received by each state in Nigeria from the Federation Account
Allocation (FAA) between January to December 2016. The
latest report on IGR reveals that only Lagos and Ogun States
generated more revenue than their allocations from the
Federation Account by 169% and 127% respectively and no
any other state has up to 100% of IGR to the federal largesse.
The IGR of the 36 states of the federation totalled N801.95
billion in 2016 as compared to N682.67 billion in 2015, an
increase of N119.28 billion. While the report provides
shocking discoveries to the effect that 14 states which have
less than 10% IGR may not stay afloat outside the Federation
Account Allocation due to socio-political crises including
insurgency, militancy and herdsmen attacks, others 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 include
Borno which realized a meagre N2.6bn compared to a total of
N73.8bn it received from the Federation Account Allocation
(FAA) in 2016 representing about 4%. Others are: Ebonyi with
IGR of N2.3bn compared to FAA of N46.6bn representing 5%;
Kebbi N3.1bn compared to FAA of N60.88bn representing
5.14%; Jigawa with N3.5bn compared to N68.52bn of FAA
representing 5.15% and Yobe with IGR of N3.24nn compared
to N53.93bn of FAA representing 6.0% within the period
under review.
Other poor internal revenue earners are Gombe which
generated N2.94bn compared to FAA of N46bn representing
6.26%; Ekiti N2.99bn compared to FAA of N47.56bn
representing 6.28%; Katsina N5.54bn compared to FAA of
N83bn representing 6.65% and Sokoto N4.54bn compared to
FAA of N65.97bn representing 6.88%.
Meanwhile Lagos State remained steadfast in its number one
position in IGR with a total revenue generation of N302bn
compared to FAA of N178bn which translate to 169% in the
twelve months of 2016. It is followed by Ogun State which
generated IGR of N72.98bn compared to FAA of N57bn
representing 127%.
Others with impressive IGR include Rivers with N85bn
compared to FAA of N134bn representing 63%; Edo with IGR
of N23bn compared to FAA of N59bn representing 38%.
Kwara State however with low receipt from the Federation
Account has greatly improved in its IGR of N17bn compared
to FAA of N49bn representing 35% while Delta with IGR of
N44bn compared to FAA of N126bn representing 6.88%.
The Economic Confidential ASVI further showed that only
three states in the entire Northern region have IGR above
20%. They are Kwara, Kano, and Kaduna States. Meanwhile
eight states in the South recorded over 20% IGR in 2016.
They are Lagos, Ogun, Rivers, Edo, Delta, Cross River, Enugu,
and Oyo States State.
The states with the poorest Internally Generated Revenue of
less than 10% in the South are Imo, Bayelsa, Ekiti, and Ebonyi
States while in the North we have Niger, Nasarawa, Sokoto,
Katsina, Gombe, Yobe, Jigawa, Kebbi and Borno 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 revenue that largely come from the oil
sector. www.vanguardngr.com/2017/05/state-viability-index-lagos-generates-igr-31-states-combined/

kwara Laughing in Hebrew

Let every state control their resources and watch the tables turned.