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The Dilemma Of Revenue Generation In Abịa State (1) by consecrated(m): 11:00am On Nov 08, 2019
By Chukwudimma Aaron-Okonkwo

Ever ranked number one in an alphabetical order among the list of 36 States and 1 Federal capital territory that constitute Nigeria, Abia State is in danger as regards to the management of her finances and revenue generations. This danger signal is already a bad omen for the State. Unless, the good citizens of Abia State gather up their strengths to fight against this danger, the elements of bad governance will forever overlap the State. The citizens have the fundamental right to protest; because it is their money that is being toyed with. The citizens have absolute fundamental right to demand transparency and accountability from its government; because they are the employers.

The earlier the good people of Abia State takes the bull by the horns to demand transparency and accountability from the government, the better. The later the people begins to demand it, the worse! As they said, delay is dangerous. In fact, civil servants and pensioners are not being paid their monthly salaries and allowances respectively; because we, as a people being governed, have been too reluctant to challenge the government. The development of infrastructures -- roads, bridges, buildings -- are in a complete state of abandonment today; because we have been too lenient with the government.

Of truism, God's own State of Abia has the potential to generate over five billion naira (#5billion) every month. But since we have a government that love cooking lies for us all to swallow, this amount (#5bn) may seem quite exaggerated. Believe you me, it is neither an exaggeration nor a bluff. It's a clear fact!

According to the National Bureau of Statistics (NBS) data for quarter one (Q1) and quarter two (Q2) of 2019, the Internally Generated Revenue (IGR) of Abia State is a total sum of seven billion, nine hundred and twelve million, five hundred and ninety-six thousand, three hundred and thirty-two naira, zero five kobo (#7, 912,596,332.05). Anyone that hears this figure to believe that the State did not generate more than #7.9 billion naira from January to March (Q1) and April to June (Q2) will indeed believe anything! Look, the money is a meagre and thus, an indication that there is a loophole on the revenue collection in Abia State. Without any doubt, the State generated more than #7.9 billion naira in the first six months of the year. We must, therefore, refuse to eat the bloody lies cooked by the government that she generated a monthly average of #1.3 billion naira between January and June, 2019!

It is, nevertheless, pertinent at this juncture to show us how Abia State generates her revenue. First, there are two forms of revenue generation to State government namely; Externally Generated and Internally Generated Revenues. The Externally Generated Revenue (EGR) are revenues sourced from the Federation account, donations from Individual/Corporate bodies, Foreign grants and aids etc. On the other hand, the Internally Generated Revenue (IGR) are those that are sourced mainly from taxes and licenses within the State. In consequence, IGR is a monthly revenue generated from the Ministries, Departments and Agencies (MDAs), Pay-As-You-Earn (PAYE), Direct Assessment (DA),Motor Vehicle Taxes (MVT) and Capital Gain Taxes (CGT).

Furthermore, MDAs revenue are revenues generated by the various institutions of the State government in the course of providing administrative services to residents in the State. There are about 27 Ministries, 7 Departments and 36 Agencies. This is altogether a total of seventy (70) MDAs in Abia State. As for PAYE; it is a form of personal income tax, and this refers to tax deducted directly from the wages and salaries of employees working in the formal sector of the State. We are talking of civil servants and government appointees here. While the civil servants amount to approximately sixty-five thousand (65,000) in Abia State, the government appointees are over a thousand in number!

The Direct Assessment, in consequence, is a form of personal income tax used to asses tax for self-employed individuals. Also, it relates to those imposed on businesses especially informal by the State authorities based on the size of their activities. According to NBS bulletin of July, 2010, Abia State has a total of 1,765,008 million informal workers. Of this figure, 958,186 were males while the remaining 806,822 were females.

Following this, Motor Vehicle Taxes refers to those road levies that are paid by tricycle operators (Keke riders), bus drivers, taxi drivers, motorcycle operators (Okada riders), and wheel barrow pushers. Statistically, Abia State has about 200,000 commercial transport operators. Those operators purchase about five emblems every year aside daily extortions from them in the name of tickets.

Capital Gain Taxes are various taxes such as land registration, and other related fees, development levies on individuals and market traders, pool betting/lottery/gaming fees, stamp duties and so on and so forth. Think of the popular Ariaria International Market alone and imagine the number of lockup shops there. Like Ariaria, there are, of course, many other markets not to mention stores in residential buildings and kiosks in the motor parks.

Now, let us critically analyze the breakdown of a total sum of #7.9 billion naira generated by the State for six months.

a) MDAs generated three billion, eighty-seven million, twenty-seven thousand, seven hundred and sixty-one naira, twenty-eight kobo (#3, 087,027,761.28) . This is a monthly average generation of five hundred and thirteen million naira (#513 million) from 70 MDAs. Jehovah Jireh! For a fact, Abia State University, Uturu alone is capable of generating this meagre #513m for the State. So how come a whole 70 MDAs returns this small amount to the State coffers every month?

b) PAYE generated three billion, seven hundred and eighty-seven million, five hundred and ninety-one thousand, seven hundred and eighty-seven naira, eleven kobo (#3, 787,591,787.11). This is a monthly average of #616.6 million naira for a government whose total workforce is over 65,000. If this monthly #616.6m is not a meagre sum, what do we called it?

c) Direct Assessment generated one hundred and seventy-seven million, three hundred and three thousand, eighty hundred and thirty-one naira, thirty-six kobo (#177, 303,831.36); a monthly average of 29.5 million naira for a State that has one million, seven hundred and sixty-five thousand, and eight (1,765,008) informal workers according to NBS bulletin of July, 2010. How come that a meagre #29.5 million is returned to the government every month when it is visible to the blind and logical to the mad that the State Government is capable of generating a monthly sum of #1, 765,008,000 (#1.7 billion) taxing each informal worker #1,000? However, for a fact, each informal worker pays over #1,000 to the government on monthly basis. Please, calculate again.

d) Motor Vehicle Taxes generated one hundred and thirty million, six hundred and thirteen thousand, three hundred and ninety-four naira, fifty-one kobo. (#130, 613,394.51) indicating a monthly average of #21.7 million naira. What does the government took the people for when arriving at this figure? How is it that over 200 commercial transport operators in the State that purchases five emblems and numerous daily tickets could return #21.7m monthly to the State government coffers?

e) Capital Gain Taxes generated the sum of seven hundred and thirty million, fifty-nine thousand, five hundred and fifty-seven naira, seventy-nine kobo (#730, 059,557.79) representing a monthly generation of #121.6 million naira for the State. Suffice to mention that, aside arbitrary charges in the name of levy on market traders, buyers, etc, lockup shop owners pays a monthly levy of #2, 000 and #1, 800 for infrastructure and local government respectively.

Fellow compatriot, ever wondered how come some individuals in government became billionaires in just few years upon assumption of office? Ever wondered how come we have the highest number of sycophants amidst bad governance in Abia State today? Wonder no more for only the truth can heal a conscience.

If this State whose position is number one among the list of Nigerian States had taken bold approach to close up loopholes in her revenue generation, she would have been ranking among the top four IGR generators today. Sadly, as the reverse is the case, she is shamelessly ranking 22nd position. Truly, if Abia State had been able to effectively and efficiently manage her IGR, Delta State (#36.6 bn), Ogun State (#29.5bn), Kaduna (#22.4bn) and Ákwá Ibom (#20.bn) which are among the top IGR generators would not have better IGR than her.

Meanwhile, Ebonyi State - created on October, 1996 from part of Abia (and Enugwu) - is ranking behind Abia at position 25th with an IGR of #6.07 billion naira yet smiling richly with long lasting developments. Is it not an irony that this same Ebonyi has transformed into a world class destination of choice for investors, while Abia that has higher IGR than her cannot boast of any good infrastructural development that will attract investors? Today in Ebonyi State, a world class international Airport is being built, while Abia State finds solace that a good project was done at Enyimba International Stadium, Aba. Today in Ebonyi State, Governor Umahi completed and commissioned world class bridges, while Abia State is crawling with construction of an interchange nicknamed Centre Table at Osisioma junction. In the same Ebonyi State today are good motorable roads constructed within the last five years, while Abia whose roads have totally collapsed is shamelessly telling the world that mmiri na-ezo (it is raining). Sad!

Is there any hope of improving the IGR of Abia State; in order to service her domestic and external loan? Let's look ahead.

#AbiaIGRLoopholes

30.10.2019
Re: The Dilemma Of Revenue Generation In Abịa State (1) by sweetonugbu: 11:18am On Nov 08, 2019
The next governor will be worst than Okezie Ikpeazu

1 Like

Re: The Dilemma Of Revenue Generation In Abịa State (1) by Ojiofor: 11:29am On Nov 08, 2019
sweetonugbu:
[s]The next governor will be worst than Okezie Ikpeazu[/s]

Why are this wicked.
Back to sender!
Re: The Dilemma Of Revenue Generation In Abịa State (1) by sweetonugbu: 11:33am On Nov 08, 2019
Ojiofor:


Why are this wicked.
Back to sender!
I am not wicked I am fro Umuahia north local government,nwa afor ohuhu, my people are very very daft when it comes to politics, okezie and ochendo will bring out ikuku as the next governor and people will campaign for him and vote for him,bet me, so what will you call them?.

2 Likes

Re: The Dilemma Of Revenue Generation In Abịa State (1) by IGBOSON1: 11:49am On Nov 08, 2019
Ojiofor:


Why are this wicked.
Back to sender!

No be curse....it stands to reason! He's being logical and talking based on facts before him!

Since 1999, with every subsequent change of the baton of governance in the state, the quality of governance has deteriorated exponentially! So judging based on precedence it stands to reason that the next governor of the state will be worse!

3 Likes

Re: The Dilemma Of Revenue Generation In Abịa State (1) by IGBOSON1: 11:53am On Nov 08, 2019
sweetonugbu:
I am not wicked I am fro Umuahia north local government,nwa afor ohuhu, my people are very very daft when it comes to politics, okezie and ochendo will bring out ikuku as the next governor and people will campaign for him and vote for him,bet me, so what will you call them?.

Honesty like yours is rare among the docile Abia electorate! They're easily led and don't seem to have a mind of their own! Of course this doesn't overlook the part massive rigging has played in elections in the state!

1 Like

Re: The Dilemma Of Revenue Generation In Abịa State (1) by sweetonugbu: 12:06pm On Nov 08, 2019
IGBOSON1:


Honesty like yours is rare among the docile Abia electorate! They're easily led and don't seem to have a mind of their own! Of course this doesn't overlook the part massive rigging has played in elections in the state!
ojiofor is just being emotional, we pretend a lot in Abia state, every body is righteous,man of God etc but they are gullible

1 Like

Re: The Dilemma Of Revenue Generation In Abịa State (1) by Ojiofor: 12:40pm On Nov 08, 2019
sweetonugbu:
I am not wicked I am fro Umuahia north local government,nwa afor ohuhu, my people are very very daft when it comes to politics, okezie and ochendo will bring out ikuku as the next governor and people will campaign for him and vote for him,bet me, so what will you call them?.

Nor matter what the situation is we have to pray for the better not worst however the next governor of Abia state is coming from Abia North and that rules Ikuku out.

Igboson.
Re: The Dilemma Of Revenue Generation In Abịa State (1) by sweetonugbu: 12:53pm On Nov 08, 2019
Ojiofor:


Nor matter what the situation is we have to pray for the better not worst however the next governor of Abia state is coming from Abia North and that rules Ikuku out.

Igboson.
Abia north in contested against Abia central,so if ogah had won he will be denied because he came from Abia north?.
Re: The Dilemma Of Revenue Generation In Abịa State (1) by Ojiofor: 12:56pm On Nov 08, 2019
sweetonugbu:
Abia north in contested against Abia central,so if ogah had won he will be denied because he came from Abia north?.

Did he contest under PDP?
PDP have power rotation agreement unless opposition party won the election.
Re: The Dilemma Of Revenue Generation In Abịa State (1) by sweetonugbu: 12:57pm On Nov 08, 2019
Ojiofor:


Did he contest under PDP?
PDP have power rotation agreement unless opposition party won the election.
ok sir
Re: The Dilemma Of Revenue Generation In Abịa State (1) by Asnafsaeed(m): 1:35pm On Nov 08, 2019
Hahah this exercise is in futility!! Nyamuri flat.heads energy is so fixated towards tinubu, Lagos, buhari etc that if they put half the effort, Abia would have prospered

1 Like

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