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Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] - Politics (3) - Nairaland

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Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by BeautifulMind2: 9:21pm On May 12, 2019
Badonasty:


my state making me proud...I be ọmọ Ogun
You guys should keep deceiving yourselves

6 Likes 1 Share

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by Monday60655(m): 9:23pm On May 12, 2019
How far about Anambra? Nothing was said about them.
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by VillagePipu: 9:24pm On May 12, 2019
meeky007:

so Benue is now a a northern state

No, it is part of Igboland.
Wawa illiterate.
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by VillagePipu: 9:25pm On May 12, 2019
Monday60655:
How far about Anambra? Nothing was said about them.

They are talking about states, you're mentioning Anambra.

All the MOUs signed by Obiano, where are the fruits?
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by omohayek: 9:25pm On May 12, 2019
Kennydoc:


States like Edo and Ondo that recorded good IGR are simply taxing their citizens quite much. It's not so much about good governance.
Do you think repeating this made-up nonsense enough times will magically make it true? Not a single Nigerian state comes close to the levels of taxation found throughout the developed world, or even in middle-income countries like China, Thailand. Even Lagos State is an ultra-low tax region by international standards.

It's nonsense to speak of being so heavily dependent on federal allocations as if it were something to be proud of. What happens if the FG suddenly decides to slash them for whatever reason? A far more likely reason why IGR is so low in the SE states is that their levels of internal economy activity simply can't support higher taxes.

2 Likes

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by BeautifulMind2: 9:28pm On May 12, 2019
VillagePipu:


They are talking about states, you're mentioning Anambra.

All the MOUs signed by Obiano, where are the fruits?
Propaganda tribe this is reality on ground

3 Likes 1 Share

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by Nobody: 9:30pm On May 12, 2019
meeky007:

so Benue is now a a northern state

No ooo, it is a southern state
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by fayomim: 9:30pm On May 12, 2019
North and Poverty are like 5 & 6

1 Like 1 Share

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by jamjo: 9:31pm On May 12, 2019
phantom:
Bayelsa is a disgrace. Anamba, imo and Abia nko? This country needs to be badly restructured and I don't mean by secession of any part YET!
We can start by pushing for removal of certain things from the exclusive list of the federal govt.
Power for example. Once there is deregulation of power, a poor Northern state can borrow money from a bank and build an IPPS solely for a maskive industrial estate 3 to 5 times the size of trans amadi industrial layout in portharcourt.
Dangote and other manufacturers would fall over themselves to own factories there.
Do you know how much power supply adds to the overhead of a company daily?
Attract businesses to your state. Give them power supply and they WILL GLADLY PAY REASONABLE TAX TO THE STATE.


Southeast has a gold mine if they can take advantage of the property taxes, if I said 65% of houses in Southeast don't pay property tax I'm sure people will agree with me. Thousands or may I said millions of houses in the villages can be made to pay taxes they will not be in the
situation they found themselves, they cannot limit themselves in the cities only.
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by poseidon12: 9:32pm On May 12, 2019
Nigeria is really poor. We have a very long way to go. One major research university in the US actually generates and budgets more money than all the Nigerian 36 States put together.

2 Likes

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by kayzeesoft(m): 9:32pm On May 12, 2019
meeky007:

so Benue is now a a northern state
North central
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by MetaPhysical: 9:32pm On May 12, 2019
BlackfireX:
Where is Anambra position

Na mouth Anambra get. Anambra is a deficient state when it comes to economic innovation and performance.

2 Likes

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by Nobody: 9:33pm On May 12, 2019
Badonasty:


my state making me proud...I be ọmọ Ogun
and that's why you have to quote the whole page, this is 2019 going to an end, receive sense
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by RealityShot: 9:34pm On May 12, 2019
why is Borno with N122bn of FAA greater than Edo with FAA of N112bn?
? SOUTH SOUTH and South West... make una shine una EYES O!

see how useless Yobe is, and they want to produce Senate President!
Yobe N4.48bn compared to FAA of N89bn

When I say the north is not paying tax for all the food items they are selling to South,
Some people will start talking rubbish.
How come taraba, Niger, adamawa, Benue and other
Well known food producing g states have very low IGR?

SIMPLE "NO TAXATION"


lete not talk more on the unfair FAA...
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by DeRay98(m): 9:35pm On May 12, 2019
Edo has been pulling its since Oshiomhole took over and made Obaseki his economic team planner and head and later as the guvnor to continue onward.

1 Like 1 Share

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by Kennydoc(m): 9:35pm On May 12, 2019
omohayek:

I know these sorts of reports play serious havoc with your poor sense of tribal self-esteem, but you really need to stop repeating this nonsensical lie: if the states were allowed to keep any of the VAT collected within them, the dominance of Lagos in the IGR stats would be even more lopsided than it already is, as Lagos alone is responsible for over 55% of all VAT revenue in the country.


And if wishes were horses, beggars would ride. How do you know Edo and Ondo suffer from "high taxation"? Do you have any GDP numbers to support such a claim? And how do you know Anambra and Abia could raise such high revenues without GDP figures for them as well? Unless you can back your wild claims with numbers sources from reputable sources, all you've done here is reveal your wounded tribal pride for the world to see.

As for the point in bold, I schooled in Edo State, and I was there during Oshiomhole's 1st tenure. He was the one that increased taxes. It caused a lot of uproar then because many proprietors of schools and various businesses were crying out because of the massive tax imposed on them by EDSG. Gradually, people adjusted.

Ondo State increased their IGR from an average of around ₦800 million per month in 2017 to about ₦2 billion per month in 2018. What do you think led to that marked increase within one year? It's most likely increased (or possibly more efficient) taxation.

The truth is that most of the states that have high IGR (including Lagos) are just more efficient with tax collection. If Anambra and Abia improve their tax collection system, their IGR will definitely rise. In such states with a large number of traders, it's more difficult to get people to pay the right amount of tax unlike in states with a large proportion of civil servants like Edo State.

7 Likes

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by kernel01: 9:36pm On May 12, 2019
BayportalEnt:
With the way states in the SE voted for 1 party I thought the governance in those states were 2nd to none...


Yoruba always more concerned about the Igbos, you aren't suggesting means of getting more revenue for your state, rather you're obsessed about the Igbos.

I wish you the best.
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by kernel01: 9:37pm On May 12, 2019
irepnaija4eva:

The four Southern states with the poorest Internally Generated Revenue of less than 10% compared to their FAA in 2018 are Akwa Ibom, Ekiti, Ebonyi and Bayelsa. Similarly, 13 Northern States have poorest IGR, namely Benue, Nasarawa, Gombe, Zamfara, Niger, Bauchi, Jigawa, Taraba, Adamawa, Borno, Katsina, Yobe and Kebbi States.





Ebony state I can relate but AKWA IBOM and BAYELSA shocked

What the hell are they smoking over there



Hope you can relate Ekiti State?
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by RealityShot: 9:38pm On May 12, 2019
jamjo:



Southeast has a gold mine if they can take advantage of the property taxes, if I said 65% of houses in Southeast don't pay property tax I'm sure people will agree with me. Thousands or may I said millions of houses in the villages can be made to pay taxes they will not be in the
situation they found themselves, they cannot limit themselves in the cities only.
are they paying "property tax" in the north?
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by wakes: 9:38pm On May 12, 2019
Really
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by RealityShot: 9:40pm On May 12, 2019
ladiesreject:

No ooo, it is a southern state
open atlas... GEOPOLITICAL maps
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by nickxtra(m): 9:41pm On May 12, 2019
Ebullience:
The Economic Confidential on Sunday released its Annual States Viability Index (ASVI) report.

It showed that 17 States are insolvent as their Internally Generated Revenues (IGR) in 2018 were far below 10% of their receipts from the Federation Account Allocations (FAA) in the same year.

The index declared that without the monthly disbursement from the Federation Account Allocation Committee (FAAC), many states remain unviable, and cannot survive without the federally collected revenue, mostly from the oil sector.


The IGR are generated by states through Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDAs).

The IGR of the 36 states of the federation totalled N1.1 trillion in 2018 as compared to N931 billion in 2018, an increase of N172 billion.

The report further indicates that the IGR of Lagos State of N382bn is higher than that of 30 States put together whose Internally Generated Revenues are extremely low, and poor compared to their allocations from the Federation Account.

Meanwhile, the Federal Capital Territory (FCT) Abuja, which is not a state but the nation’s capital generated N65bn IGR against N29bn it got from the Federation Account in 2018.

Lagos State remained steadfast in its number one position in IGR with a total revenue generation of N382bn compared to FAA of N260bn which translate to 146% in the twelve months of 2018.

It is followed by Ogun State which generated IGR of N84.55bn compared to FAA of N93bn representing 90%; Rivers with N112bn compared to FAA of N237bn representing 47% and Kwara State with a low receipt from the Federation Account has maintained its impressive IGR by generating N23bn compared to FAA of N81bn representing 28%.

Others with impressive IGR include Edo with IGR of N28bn compared to FAA of N112bn representing 25%; Kano generated N44bn compared to FAA of N183bn representing 24%; Enugu with IGR of N22bn compared to FAA of N92bn representing 23%; Ondo with IGR of N24bn compared to FAA of N108bn representing 22.77%; Kaduna with IGR of N29bn compared to FAA of N131bn representing 22.44% while Delta State earned N58bn IGR against FAA of N285bn representing 20%.

The report noted that ten states with impressive IGR generated N808bn in total, while the remaining states merely generated a total of N295bn in 2018.

While the report provides shocking discoveries, the states with less than 10% IGR have remained 17 as in the previous year 2017.

It added: “The poor states may not stay afloat outside the Federation Account Allocation due to socio-political crises including insurgency, kidnapping, armed-banditry and herdsmen-farmer clashes.

“Other states 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 are Ebonyi which realized a meagre N6.14bn compared to a total of N76bn it received from the Federation Account Allocation (FAA) in 2018 representing about 7.98%; Bayelsa with IGR of N13.6bn compared to FAA of N192bn representing 7.10%; Taraba N5.96bnbn compared to FAA of N88bn representing 6.77%; Adamawa with IGR of N6.2bn compared to N97bn of FAA representing 6.77% and Borno with IGR of N6.52bn compared to N122bn of FAA representing 5.3% within the period under review.


“The major poor internal revenue earners are Katsina which generated N6.9bn compared to FAA of N138bn representing 5.03%; Yobe N4.48bn compared to FAA of N89bn representing 4.86% and lastly Kebbi N4.88bn IGR compared to FAA of N101bn representing 4.88%.”

The Economic Confidential ASVI further showed that only three states in the entire Northern region have IGR above 20% in comparison to their respective allocations from the Federation Account. They are Kwara, Kano and Kaduna States. Meanwhile seven states in the South recorded over 20% IGR in 2018. They are Lagos, Ogun, Rivers, Edo, Enugu, Ondo and Delta States.

The four Southern states with the poorest Internally Generated Revenue of less than 10% compared to their FAA in 2018 are Akwa Ibom, Ekiti, Ebonyi and Bayelsa. Similarly, 13 Northern States have poorest IGR, namely Benue, Nasarawa, Gombe, Zamfara, Niger, Bauchi, Jigawa, Taraba, Adamawa, Borno, Katsina, Yobe and Kebbi States.

https://dailypost.ng/2019/05/12/10-nigerian-states-economically-viable-17-bankrupt-see-details/

Edo no dey ever carry last

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Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by emmykk(m): 9:42pm On May 12, 2019
BayportalEnt:
With the way states in the SE voted for 1 party I thought the governance in those states were 2nd to none...


I think you should read the post again,you didn't only fail to understand it but also lack thinking faculty.
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by BeautifulMind2: 9:42pm On May 12, 2019
MetaPhysical:


Na mouth Anambra get. Anambra is a deficient state when it comes to economic innovation and performance.
And was not part of states that FG bailed out grin Anambra is lowest in debt in Nigeria

2 Likes

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by patrickcollins: 9:50pm On May 12, 2019
jamjo:



Southeast has a gold mine if they can take advantage of the property taxes, if I said 65% of houses in Southeast don't pay property tax I'm sure people will agree with me. Thousands or may I said millions of houses in the villages can be made to pay taxes they will not be in the
situation they found themselves, they cannot limit themselves in the cities only.
Pay which tax, waitin government provide for her citizenry, forget igr we dey okay whether small or big, since it does not translate to good governance, all states in Nigeria are poor and the masses suffering.
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by Angelfrost(m): 9:50pm On May 12, 2019
If this nation were a business enterprise, most of those states would have been shut down or merged with productive states under one govt... Certain states have no business standing and milking from the centre at the expense of resourceful states...

Southerners, especially those in Delta, Abia, and Akwa Ibom should be humbled in shame... Delta state shocks me in no small measure. With all the mineral, capital and human resources? Come now, Ogun state shouldn't be this far above them na... Can't our politicians be smarter and less obvious in their plundering?...

As for the North... They have never really been progressive.
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by Kennydoc(m): 9:50pm On May 12, 2019
omohayek:

Do you think repeating this made-up nonsense enough times will magically make it true? Not a single Nigerian state comes close to the levels of taxation found throughout the developed world, or even in middle-income countries like China, Thailand. Even Lagos State is an ultra-low tax region by international standards.

It's nonsense to speak of being so heavily dependent on federal allocations as if it were something to be proud of. What happens if the FG suddenly decides to slash them for whatever reason? A far more likely reason why IGR is so low in the SE states is that their levels of internal economy activity simply can't support higher taxes.

Your choice of words is just irritating for a decent argument. You can disagree with me but stop calling my opinion nonsense. I don't like it.

You haven't lived in Anambra (and Abia) before so you don't know the level of economic activities there. Anambra has one of the highest number of Nigerian billionaires (in Naira). There are very many thriving businesses there. Anambra is much more economically viable than Edo State. I lived in Edo for 7 years, so I know the state well enough.

I've told you the issue with Anambra, and that's the fact that people don't like paying tax. Any governor that vigorously pursues taxation easily attracts the wrath of the people. These are not like sound business organisations with well laid out structure, so it's difficult to get optimal tax from them, but many of those businesses are doing very well and can actually pay more tax.
Even in the Western world, private business owners quote low revenue to reduce their tax, how much more in Nigeria.

Also, all these figures about IGR sometimes mean little to me. Anambra is one of the few states that never got bailout from FG, yet it's nowhere among the top 10 states with good IGR. Some of those states with high IGR like Ogun and Edo etc got bail out from FG. How come they needed bailout despite their high IGR, yet Anambra with low IGR didn't need bailout?

5 Likes 1 Share

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by omohayek: 9:51pm On May 12, 2019
Kennydoc:

The truth is that most of the states that have high IGR (including Lagos) are just more efficient with tax collection. If Anambra and Abia improve their tax collection system, their IGR will definitely rise. In such states with a large number of traders, it's more difficult to get people to pay the right amount of tax unlike in states with a large proportion of civil servants like Edo State.
Now you're making comments worth taking seriously. It's reasonable to say that Anambra and Abia can make dramatic improvements to their tax collection systems, but just how far that would take them is still to be seen. In the meantime, there's no reason to expect other state governments to be sitting on their oars just waiting to be surpassed.

As for the claim that Edo's IGR increases were enabled by it being a civil-service state, how does that then explain the dismal IGR performance of Ekiti or any of the many northern states at the bottom of the performance table? Besides, simple arithmetic shows that if a state's IGR numbers are primarily driven by payroll taxes on state employees, IGR could never hope to come close to federal allocations, as most of the budget for paying those state workers would have to come from said allocations.

These IGR numbers undoubtedly owe something to the efficiency of tax collection, but to some extent they also reflect the real level of economic activity within the various states. Even if the likes of Zamfara and Katsina were to become paragons of efficiency, they would never have a prayer of matching the revenues of Ogun or Lagos as they stand today.

After adjusting for tax efficiency, the only possible mitigating factor left is the relative size of the formal and informal sectors of the state economies, but this again is a marker of economic development, as places with more private workers who can be taxed are those where there is more higher-productivity work going on. People who sit in air-conditioned offices and wear dress shirts to work are the only ones in the private sector who get payroll taxes deducted, and they are more productive than those who engage in the kind of work where taxes are easier to evade.

2 Likes

Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by Unlimited22: 9:52pm On May 12, 2019
This is why restructuring won't work.
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by Casptainspecial: 9:54pm On May 12, 2019
We need to diversify our economy for God sake
We can't continue to depend on crude oil forever
Am afraid we might face another recession if we can't do without crude oil only
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by Olumyco(m): 9:58pm On May 12, 2019
RealityShot:
are they paying "property tax" in the north?

Do we pay property tax in Nigeria?
Re: Only 10 Nigerian States Economically Viable, 17 Bankrupt [see Details] by BeautifulMind2: 9:59pm On May 12, 2019
MetaPhysical:


Na mouth Anambra get. Anambra is a deficient state when it comes to economic innovation and performance.
You guys should go and learn from Anambra not using propaganda to be deceiving gullible minds, Anambra is not owing civil servants or pensioners, they have done more on infrastructures above all Anambra is least indebted state in Nigeria, while you and your likes that keep shouting IGR upandon your state governments are seriously indebted, they can't construct 1km of road without borrowing, this is a case of crippled man insulting someone with two legs grin

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