THE Federal Inland Revenue Service (FIRS), has called the attention of those clamouring for the creation of new states to the low Internally Generated Revenue (IGR) of the existing ones, saying they hardly generate up to three per cent of their total income.

The Chairman of FIRS, Mrs. Ifueko Omogui-Okaru, said in Abuja, few days ago, that besides Lagos and Sokoto states that generated 60 per cent and 46 per cent IGR respectively, in 2008, others depended on Federal Allocations for the bulk of their income.

Okaru, who is a member of the Federation Accounts Allocation Committee (FAAC), the body which shares federal revenue monthly, made the revelation in Abuja, at the State’s Accountants-General Summit, according to a statement by the Director of Corporate Communications, Emmanuel Obeta.

“Some states have IGR to total revenue percentage that are as low as three per cent. Only two states had an IGR ratio above 40 per cent. For most states, the Federal Allocation ratio is above 80 per cent. This went down slightly to 70 per cent in 2009”, the FIRS chairman noted.

She thereafter asked the state’s accountants-general to help their states look for more independent and viable options for improving their IGR, rather than concentrate on Federal Allocation, which she said was unsustainable.

“I enjoined the Accountants-General to, where necessary, seek external help- but do not outsource core government functions, focus on building institutions rather than on personalities- capacity building, training, professionalism, reward and recognition of staff to get the best out of them,” she said.

They were also encouraged to leverage on technology, automation and electronic platforms to safeguard State revenue and improve generation.

Omoigui emphasised that the states have not been doing well in IGR. She added that “states whose IGR are about 20 per cent or a little more in 2008/2009 include Borno, Gombe, Abia, Rivers, Osun, Oyo, Ogun and Abia States. Most states did less than 20 per cent. A state managed only three per cent.

Quoting statistics from the Central Bank of Nigeria, Omoigui, who went through the Internally Generated Revenue for each state of the federation for 2008 and 2009, noted that the national average of IGR to total revenue for the two years was 12.87 per cent and 13.64 per cent respectively. “National average of federal allocation to total revenue for the two years (2008 and 2009) is 78.83 per cent and 76.29 per cent. The national average for value added tax is 8.30 per cent and 10.07 per cent.”

http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=54418:-states-generate-only-three-per-cent-igr-says-firs&catid=31:business&Itemid=562

Which state is this doing only 3%?

so good bye to okun state, igbomina state, anioma state and all those so called ijaw states

chekena

The way IGR is defined in Nigeria is a bit screwy to me. VAT doesn't count, yet is "internally generated." The FG taxes companies I guess on behalf of the states and redistributes, yet this doesn't count as "internally generated." Oil wealth also for some reason doesn't count as internally generated. Port revenue that goes to the FG and is redistributed, also not internally generated. Airport revenue, same.

ekt_bear:

The way IGR is defined in Nigeria is a bit screwy to me. VAT doesn't count, yet is "internally generated." The FG taxes companies I guess on behalf of the states and redistributes, yet this doesn't count as "internally generated." Oil wealth also for some reason doesn't count as internally generated. Port revenue that goes to the FG and is redistributed, also not internally generated. Airport revenue, same.

nah dapo

Oil money, fedral ports, fedral tax, does not count to IGR in nigeria

like for example the way lagos generates its revenue is by state tax, state toll gates, and states airport now

states like borno will generate money from food transactions and tourism

but all those shouting oil and co are saying rubbish

I believe those clamoring for the creation of new states only want an easy share of the federal cake. In the current financial allocation system, creation of new states seems to be the simplest method to gain access to federal funds and employment creation, looting, political appointments etc. The present agitation for new states creation wouldn't be present and appealing if states generated their own revenue.

ekt_bear:

The way IGR is defined in Nigeria is a bit screwy to me. VAT doesn't count, yet is "internally generated." The FG taxes companies I guess on behalf of the states and redistributes, yet this doesn't count as "internally generated." Oil wealth also for some reason doesn't count as internally generated. Port revenue that goes to the FG and is redistributed, also not internally generated. Airport revenue, same.

and that's why the clamour for resource control is on the increase. Leave petro dollars on the side, do you know such a huge portion of VAT is collected from lagos alone ? Unfortunately that same money is remitted to the federal coffers and just a fraction of it is sent back to lagos during distribution.
A new formula has to designed by Okonjo-Iweala if the govt is really serious about getting this thing right

edoyad:

and that's why the clamour for resource control is on the increase. Leave petro dollars on the side, do you know such a huge portion of VAT is collected from lagos alone ? Unfortunately that same money is remitted to the federal coffers and just a fraction of it is sent back to lagos during distribution.
A new formula has to designed by Okonjo-Iweala if the govt is really serious about getting this thing right

Then Lagos needs to renegotiate the fraction it is given back because of the burden of the Nigerian population moving to Lagos daily. What Lagos gets from the FG is simply not enough to sustain the state. I wish someone like Gani can rise up in our generation and start suing the FG for all these atrocities.