Only one of the 36 states can afford to pay workers’ salaries with internally generated revenues, Daily Trust investigations revealed—underscoring the level of dependence of the federating units on the central government.
The remaining 35 states generate only a fraction of funds they require to settle their wage bills annually. This means that without federal funds, these states cannot even afford salaries payment, not to talk of executing any projects.
Daily Trust obtained information on states’ wage bills and drew comparisons with data on their internally generated revenues (IGR), published by the National Bureau of Statistics. The result showed that onlyLagos State can pay salaries of its workers by solely relying on revenues generated internally.
None of the 19 Northern states has this much financial muscle. They all depend on federally-allocated subventions, mainly made up of funds generated from sales of crude oil that is extracted down south.
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