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Politics, Governance and Economy: How Do These Affect IGR Of States? - Politics - Nairaland

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Seriake Dickson: You Don't Play Politics With National Security And Economy / IGR Of Nigerian States From 2007 To 2020 / Borno Leads Ebonyi On NBS Ranking Of States IGR Of 2019 (2) (3) (4)

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Politics, Governance and Economy: How Do These Affect IGR Of States? by ProvisioDigital: 3:16am On May 03
In Nigeria, election cycles run every 4 years. State governors can run for two 4-year terms. In 2011, elections were held in 26 states due to tenure completion of the remaining 10 states being different.

Political analysts often cite the first year in office for elected officers as the year of settling down in office; the second year for implementation of policies; the third year for consolidation and/or election preparation and the fourth year as election year. The 4th year could be handover or continuation of an administration.

Does politics and governance play a role in states' ability to generate IGR? Are political office holders able to maintain a progressive increase in revenue?

Conclusion: there is no consistent pattern of growth in yearly revenue by States.

⚠️Note: this #trend is only a year-on-year percentage change analysis based on the amounts generated by each state.

3 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by ProvisioDigital: 3:17am On May 03
What States Depend the most on Federal Allocations in relation to their IGR?

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Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by ProvisioDigital: 3:21am On May 03
▪A debt-to-revenue (DTR) ratio measures how much of a State's income can be used to pay its debt. For every 1 Naira earned by a state, how much is used to pay its debt?

▪In 2020, only 3 states had a DTR of <1:1. These were Katsina, Sokoto and Jigawa.

▪Cross River State had the highest DTR of 4.8:1. As shown on the image, only 26% of its revenue can pay its debt.

▪ 20 states have 50% of theirt revenue matching total debt.

▪ ▪Lagos, Rivers, Kaduna, Delta, Akwa Ibom and Cross River states have the highest debt amounts respectively (above 200bn Naira). Lagos has the highest debt of 1.044 trillion naira. This is 18% of total debts owed by all States (except FCT).

▪In relative comparison, Lagos' debt is nearly the amount of the total debt owed by the next 4 States after it in the top 5 league.

▪Lagos' debt is nearly the amount of the total debt owed by the least indebted states - 13 States combined (except the FCT).

▪While Lagos has the highest debt profile, 51% of its revenue can match its debt.

▪If only the States' IGR were used to meet debt obligations, Lagos and Rivers are at 40% and 39% levels. This is followed by Oyo, Anambra and Ogun at 30%, 28% and 26% respectively. These states can pay part of their debt at these percentage levels.

▪ If only the States' IGR were used to meet debt obligations, Gombe and Adamawa are at the bottom at 5% and 6% respectively.

▪Most states (17 of them) can meet their debt obligations (>50%) using Federal Allocations (FAAC). Jigawa, Sokoto and Katsina come out tops at 132%, 96% and 88% respectively. This means that federal allocations help to shore up total revenue of states.





ProvisioDigital:

https://www.youtube.com/watch?v=vxS_wTPSnE8

MrSly:

what is the debt status lagos state. what exactly do they do with the whole money from IGR and loan combined, given their relatively small land mass?

2 Likes 1 Share

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by iammo(m): 5:36am On May 03
cool


what a wonderful statistics, something I noticed is that IGR figures seem to decline during campaign and electioneering year , and it seem to be at peak at first year in office

Politicians are deliberately, over taxing people during their first and second years in office, after 3rd year towards 4th year they intentionally relax the taxes to make citizens vote for them


.

15 Likes 1 Share

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by helinues: 5:42am On May 03
You see why I said those who are shouting for restructuring are either a joker or they are confused...

Restructuring when ordinary LG are yet to have full autonomy?

Restructuring when the state governors have not created any new means of generating income but still depend heavily on monthly Oyel money.. Nothing like that again if the country is restructured.

Restructuring when state like Bayelsa is still struggling to pay salary upon 13% monthly derivative with population of less than 3 million people.

Restructuring when Kano has not partner with Gombe in assisting with development in the state?

Is Anambra going to share his income with Ebonyi state?

Can Lagos state bear the over burden of state like Ekiti?

5 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by owobokiri(m): 6:07am On May 03
You guys should stop this illiterate dikc measuring contest over states and regional IGR in Nigeria.. The whole thing showcases an alarming level of ignorance! It reminds one of another daft but rowdy argeument that always revolves around the strength of the Naira. Most folks here always give examples of how strong the naira was in the 80s. And because of that, they feel depressed that the naira is not that strong today. Yet, this is an economy that's is struggling to be export oriented! How in God's world, you intend to compete with China and Japan and other export oriented economies with a very strong currency beats imaginations. In making both monetary and fiscal policies, the CBN will always have in mind the need to devalue the currency to make exportable goods cheap! Though the platoon of headless chickens that have ruled this country since our flag independence have all failed to set up the basic infastructures to help productivity, it's not enough reason why citizens demanding more exports will also insist on a strong currency. It's practically contradicting....

That brings us to the worn out - ethnic chestbeating - discuss that periodically happen here about Internally Generated Revenue for states and geopolitical zones. The impression being created by those who feel favoured by the mangled data (most times churned out by ethnic henchmen and partisan hacks) is that their states and regions are more economically roburst and stronger compared to others. It's has become some sort of yardstick to measure all sorts of primordial abilities amongst groups. Yet, IGR is a function of law. What do I mean? States tax people and businesses within their enclave based on relevant tax laws in those localities. In some states, taxes are not as obnoxious as in others who seem to see taxation as legitimate war instrument against certain business groups and ethnicities (Lagos?). Anambra for instance can generate five times whatever it generates today by simply jerking up tax rates! Ditto Abia.. Not doing so normally leaves much funds in the hands of business men/traders to reinvest in either their present business or in new ideas.

Essentially, a state with a relatively high concentration of business minded people like Anambra or Abia can only perform low when compared to states with lesser economic activities, if the laws that govern taxations are not as strident and as demanding as in the later. It's very obvious. ... Another issue that gets little or no mention here is the cultural background upon which wayward taxation can easily thrive... Some regions in this country, overtime, even before the coming of the colonialists with their 'modern' taxation habits, were already prepared to accept taxation and obeisance to tax authorities. This is either because of their autocratic monarchical set ups or because they have been repeatedly defeated in all sorts of primitive wars! Taxing a defeated people beyond measure was part of the old order and most probably, accepting this uncomfortable reality has been built into the behavioral patterns of these communities, so much so that the locals wear the negative consequences of over taxation even in these modern times as some sort of badge of honor. . Elsewhere attempts to raise taxes might swell the ranks of the opposition say the ESN in the east, since "tax and spend" as a government policy has never been popular with business communities..

8 Likes 1 Share

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by oluwaseyi0: 6:09am On May 03
H
Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by MANNABBQGRILLS: 6:10am On May 03
Great piece In!

In summary : there is no consistent pattern of growth in yearly revenue by States.

2 Likes 2 Shares

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by Koikoi1: 6:12am On May 03
It's well
Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by AllenSpencer: 6:12am On May 03
helinues:
You see why I said those who are shouting for restructuring are either a joker or they are confused...

Restructuring when ordinary LG are yet to have full autonomy?

Restructuring when the state governors have not created any new means of generating income but still depend heavily on monthly Oyel money.. Nothing like that again if the country is restructured.

Restructuring when state like Bayelsa is still struggling to pay salary upon 13% monthly derivative with population of less than 3 million people.

Restructuring when Kano has not partner with Gombe in assisting with development in the state?

Is Anambra going to share his income with Ebonyi state?

Can Lagos state bear the over burden of state like Ekiti?



You said it all in simple English.

Nothin to add.

Those that clamour for restructuring are just naive of reality.

4 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by Igbochief001(m): 6:17am On May 03
helinues:
You see why I said those who are shouting for restructuring are either a joker or they are confused...

Restructuring when ordinary LG are yet to have full autonomy?

Restructuring when the state governors have not created any new means of generating income but still depend heavily on monthly Oyel money.. Nothing like that again if the country is restructured.

Restructuring when state like Bayelsa is still struggling to pay salary upon 13% monthly derivative with population of less than 3 million people.

Restructuring when Kano has not partner with Gombe in assisting with development in the state?

Is Anambra going to share his income with Ebonyi state?

Can Lagos state bear the over burden of state like Ekiti?


Did any region complain when we were in regional government ?

If restructured kano would reduce it's 44 lga to meet up

Bayelsa would make 4 times more money from oil ...what they do with it is not your business

So you are holding everyone back so that we can grow at the same pace ? Has that worked on the world history ?

If federal allocation stop coming then states would look for ways to earn money ...core northern states might even reverse sharia to bring in more investors and tourist

No body grows in his comfort zones

Some state would die and merge with other states and lose their senators and controlling power yes that what growth ensures

19 Likes 1 Share

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by helinues: 6:20am On May 03
Igbochief001:

Did any region complain when we were in regional government ?

If restructured kano would reduce it's 44 lga to meet up

Bayelsa would make 4 times more money from oil ...what they do with it is not your business

So you are holding everyone back so that we can grow at the same pace ? Has that worked on the world history ?

If federal allocation stop coming then states would look for ways to earn money ...core northern states might even reverse sharia to bring in more investors and tourist

No body grows in his comfort zones

Some state would die and merge with other states and lose their senators and controlling power yes that what growth ensures

Let them start all what you listed above first and let's see how viable and efficient they are before we talk about restructuring.. You can't jump into a swimming pool which you have no idea about it's depth

Before you dash me clothes, I must see your wardrobe..

3 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by phineas: 6:23am On May 03
owobokiri:
You guys should stop this illiterate dikc measuring contest over states and regional IGR in Nigeria.. The whole thing showcases an alarming level of ignorance! It reminds one of another daft but rowdy argeument that always revolves around the strength of the Naira. Most folks here always give examples of how strong the naira was in the 80s. And because of that, they feel depressed that the naira is not that strong today. Yet, this is an economy that's is struggling to be export oriented! How in God's world, you intend to compete with China and Japan and other export oriented economies with a very strong currency beats imaginations. In making both monetary and fiscal policies, the CBN will always have in mind the need to devalue the currency to make exportable goods cheap! Though the platoon of headless chickens that have ruled this country since our flag independence have all failed to set up the basic infastructures to help productivity, it's not enough reason why citizens demanding more exports will also insist on a strong currency. It's practically contradicting....

That brings us to the worn out - ethnic chestbeating - discuss that periodically happen here about Internally Generated Revenue for states and geopolitical zones. The impression being created by those who feel favoured by the mangled data (most times churned out by ethnic henchmen and partisan hacks) is that their states and regions are more economically roburst and stronger compared to others. It's has become some sort of yardstick to measure all sorts of primordial abilities amongst groups. Yet, IGR is a function of law. What do I mean? States tax people and businesses within their enclave based on relevant tax laws in those localities. In some states, taxes are not as obnoxious as in others who seem to see taxation as legitimate war instrument against certain business groups and ethnicities (Lagos?). Anambra for instance can generate five times whatever it generates today by simply jerking up tax rates! Ditto Abia.. Not doing so normally leaves much funds in the hands of business men/traders to reinvest in either their present business or in new ideas.

Essentially, a state with a relatively high concentration of business minded people like Anambra or Abia can only perform low when compared to states with lesser economic activities, if the laws that govern taxations are not as strident and as demanding as in the later. It's very obvious. ... Another issue that gets little or no mention here is the cultural background upon which wayward taxation can easily thrive... Some regions in this country, overtime, even before the coming of the colonialists with their 'modern' taxation habits, were already prepared to accept taxation and obeisance to tax authorities. This is either because of their autocratic monarchical set ups or because they have been repeatedly defeated in all sorts of primitive wars! Taxing a defeated people beyond measure was part of the old order and most probably, accepting this uncomfortable reality has been built into the behavioral patterns of these communities, so much so that the locals wear the negative consequences of over taxation even in these modern times as some sort of badge of honor. . Elsewhere attempts to raise taxes might swell the ranks of the opposition say the ESN in the east, since "tax and spend" as a government policy has never been popular with business communities..

The summary of your essay is IGR from high taxes is the evidence off a subservient population.And its not possible in some regions.interesting...I'll complete this later

I have always felt the community tax system in the east needs to be documented as casestudies for historical perspective to taxation in the south east and south south region

These communities have been collecting community tax for ages.they still do from all their sons and daughters wherever they may be.I learnt the famous expensive bride price as a form of community tax in it that makes it high.Those who have not been paying get the total calculated for them when they come over to mary or bury loved ones and they pay up all arrears before they can proceed.Add the cultural neccesity of all marraiges and burials must hold in the region to be honiured and you find These are effective control measures for compliance.

I also know some of these community taxes are said to be apportioned to the care of the vulnerable in the community and other initiatives the community deems is their responsibility or shared amongst themselves

So you see the southern region historically are not new to taxes they just pay theirs in a different way.Im not sure what taxation was like in the old eastern region.I can check that up and update this or ask our Nairaland encyclopaedia Naptu.

That said I understand your explanation of any Goverment in that region that increases bussiness tax will be unpopular because it is a region of bussiness men.And payee may not generate that much because the bussinesses run with low earning and few man power.

Is it possible then hypothetically that bussinesses from these communities Can be motivated to pay at a much lower level like LGA or ward and have the fund administered from that level? (I know Nigerias existing tax system at all levels,I mean if they were to restructure their tax system to suit them) , local level taxation in communities such as that may promote ownership, stimulate competition amongst local bussiness e.g communities may say .... gave that amount to his LGA and ...gave ...amount to his. But individuals cannot continue earning from a community and not pay tax to its Goverment.You all know its not so anywhere in the world.

For a society to fund itself its either through taxes from its people,or conquest of others for their taxes or money(e.g France and its francophone stooges who have their money in France's CBN), or State owned bussiness. That has to be solved or the region cannot truly Govern,sustain itself or achieve any meaningful development

5 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by Igbochief001(m): 6:24am On May 03
helinues:


Let them start all what you listed above first and let's see how viable and efficient they are before we talk about restructuring.. You can't jump into a swimming pool which you have no idea about it's depth

Before you dash me clothes, I must see your wardrobe..
No body has anything to prove to anyone ...we all have different ideas of life

How can they prove anything to you when federal government wants to control everything

Anambra built an international airport but federal government said no ...it should be local airport


Restructure this country or you would force it to break n you guys lose everything ...

Which part of Nigeria has done better with what they have gotten ? Only a fool keeps doing same thing and expecting results

6 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by renegades(m): 6:25am On May 03
I see, meanwhile check my signature.
Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by helinues: 6:29am On May 03
Igbochief001:

No body has anything to prove to anyone ...we all have different ideas of life

How can they prove anything to you when federal government wants to control everything

Anambra built an international airport but federal government said no ...it should be local airport


Restructure this country or you would force it to break n you guys lose everything ...

Which part of Nigeria has done better with what they have gotten ? Only a fool keeps doing same thing and expecting results

Eggzactly, wondering why the Biafra agitators and Oduduwa Republic agitators waiting to have their utopia country/restructuring before they can develop their respective states..

The moment they have either restructuring/their own own country, Aliens from Pluto would be the one in charge of government.....

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Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by Igbochief001(m): 6:31am On May 03
helinues:


Eggzactly, wondering why the Biafra agitators and Oduduwa Republic agitators waiting to have their utopia country/restructuring before they can develop their respective states..

The moment they have either restructuring/their own own country, Aliens from Pluto would be the one in charge of government.....
I don't know how basic your knowledge of economics and development is but ....economic and political policy are the engine block to drive development and these are in the hands of the least educated tribe in Nigeria

3 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by helinues: 6:36am On May 03
Igbochief001:

I don't know how basic your knowledge of economics and development is but ....economic and political policy are the engine block to drive development and these are in the hands of the least educated tribe in Nigeria


Wait, is it that you are finding it hard to comprehend what I have been writing or what?

What's stopping each region/state from developing their land now? Are they waiting for restructuring / or new country before they can embark on development?

Ordinary states in a region have not worked together, develop together, create jobs together.. Who will rescue the unviable state when oil money stopped?

2 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by OnlyDeCapPlease(m): 6:40am On May 03
owobokiri:
You guys should stop this illiterate dikc measuring contest over states and regional IGR in Nigeria.. The whole thing showcases an alarming level of ignorance! It reminds one of another daft but rowdy argeument that always revolves around the strength of the Naira. Most folks here always give examples of how strong the naira was in the 80s. And because of that, they feel depressed that the naira is not that strong today. Yet, this is an economy that's is struggling to be export oriented! How in God's world, you intend to compete with China and Japan and other export oriented economies with a very strong currency beats imaginations. In making both monetary and fiscal policies, the CBN will always have in mind the need to devalue the currency to make exportable goods cheap! Though the platoon of headless chickens that have ruled this country since our flag independence have all failed to set up the basic infastructures to help productivity, it's not enough reason why citizens demanding more exports will also insist on a strong currency. It's practically contradicting....

That brings us to the worn out - ethnic chestbeating - discuss that periodically happen here about Internally Generated Revenue for states and geopolitical zones. The impression being created by those who feel favoured by the mangled data (most times churned out by ethnic henchmen and partisan hacks) is that their states and regions are more economically roburst and stronger compared to others. It's has become some sort of yardstick to measure all sorts of primordial abilities amongst groups. Yet, IGR is a function of law. What do I mean? States tax people and businesses within their enclave based on relevant tax laws in those localities. In some states, taxes are not as obnoxious as in others who seem to see taxation as legitimate war instrument against certain business groups and ethnicities (Lagos?). Anambra for instance can generate five times whatever it generates today by simply jerking up tax rates! Ditto Abia.. Not doing so normally leaves much funds in the hands of business men/traders to reinvest in either their present business or in new ideas.

Essentially, a state with a relatively high concentration of business minded people like Anambra or Abia can only perform low when compared to states with lesser economic activities, if the laws that govern taxations are not as strident and as demanding as in the later. It's very obvious. ... Another issue that gets little or no mention here is the cultural background upon which wayward taxation can easily thrive... Some regions in this country, overtime, even before the coming of the colonialists with their 'modern' taxation habits, were already prepared to accept taxation and obeisance to tax authorities. This is either because of their autocratic monarchical set ups or because they have been repeatedly defeated in all sorts of primitive wars! Taxing a defeated people beyond measure was part of the old order and most probably, accepting this uncomfortable reality has been built into the behavioral patterns of these communities, so much so that the locals wear the negative consequences of over taxation even in these modern times as some sort of badge of honor. . Elsewhere attempts to raise taxes might swell the ranks of the opposition say the ESN in the east, since "tax and spend" as a government policy has never been popular with business communities..

The amount of IGR might be a mirage in some regions if restructuring takes place or Nigeria breaks. IGR is just redistribution of money that is ALREADY in the country. The less money available to redistribute, the less IGR will be distributed. Therefore if some regions end up being in a different country or different structural zone from the oil producing regions (that account for over 90% of the money that comes into Nigeria to be redistributed), how will they be able to generate activities to sustain such internal revenue? Wouldn't it be like the case of a rich family where the husband or wife brings in 90% of the income. If they divorce and share custody of children, wouldn’t it be the children that end up with the 90% earner that will continue to enjoy a rich lifestyle? What plans do regions, especially the ones agitating for restructuring or break up, have to replace the revenue currently enjoyed from FAAC and those revenues that end up in their region because of the current commercial status that they enjoy (shipping, financial services, avaition) in Nigeria right now? Bearing in mind that an independent (or financially structurally independent) South/South will be capable of setting up state of the art air and seaports with competitive rates to attract users from regions around them and even from neighbouring countries.

My point here is that levels of current IIGRin some regions will be impossible to be matched if Nigeria is restructured or broken up, even if they introduce unforgiving extra high tax rates, which in itself will quicken the departure of people to other regions.

2 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by Igbochief001(m): 6:41am On May 03
helinues:


Wait, is it that you are finding it hard to comprehend what I have been writing or what?

What's stopping each region/state from developing their land now? Are they waiting for restructuring / or new country before they can embark on development?

Ordinary states in a region have not worked together, develop together, create jobs together.. Who will rescue the unviable state when oil money stopped?
Federal government policies is stopping them oga ...don't u reason ...akwa ibom have been begging to get permission for sea port for 12 years now

Enugu have been begging federal government to allow it give land to airpeace to build aviation maintenance hub but they said no

I can go on and on ...but seems you lack the knowledge level needed to comprehend

2 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by helinues: 6:51am On May 03
Igbochief001:

Federal government policies is stopping them oga ...don't u reason ...akwa ibom have been begging to get permission for sea port for 12 years now

Enugu have been begging federal government to allow it give land to airpeace to build aviation maintenance hub but they said no

I can go on and on ...but seems you lack the knowledge level needed to comprehend

Typical Nigerian, using lazy governors excuses to debate on lack of development...

Why should Akwa Ibom be begging FG for good 12 years? Is it by begging or by presenting the bill at the legislative which can be debated on? Have Akwa Ibom past senators and reps done that?

So Enugu state waiting for FG to approve state land to air peace to build aviation maintenance hub? Abi Enugu state no get state land to give Air peace?

Wondering how much of lame excuses you have been bought by uncreative Nigeria political elites.

Buhari, Osinbajo, Tinubu and the then opposition all campaigned against the removal of fuel subsidy, they are now in power 5 years + but still telling us story about subsidy removal..

Politicians would always find an excuse for their lack of performance and incompetence..

If both Enugu and Akwa Ibom really want those things and serious about it, there are ways to go about it..

8 Likes

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by whela(m): 6:51am On May 03
negatively!
Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by nengibo: 6:53am On May 03
Confounding variable missing
Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by DivineDynamics: 6:56am On May 03
The race for fulfillments in life is incomplete without Jesus Christ.

Make Jesus your genuine pillar today.

1 Like

Re: Politics, Governance and Economy: How Do These Affect IGR Of States? by Igbochief001(m): 6:56am On May 03
helinues:


Typical Nigerian, using lazy governors excuses to debate on lack of development...

Why should Akwa Ibom be begging FG for good 12 years? Is it by begging or by presenting the bill at the legislative which can be debated on? Have Akwa Ibom past senators and reps done that?

So Enugu state waiting for FG to approve state land to air peace to build aviation maintenance hub? Abi Enugu state no get state land to give Air peace?

Wondering how much of lame excuses you have been bought by uncreative Nigeria political elites.

Buhari, Osinbajo, Tinubu and the then opposition all campaigned against the removal of fuel subsidy, they are now in power 5 years + but still telling us story about subsidy removal..

Politicians would always find an excuse for their lack of performance and incompetence..

If both Enugu and Akwa Ibom really want those things and serious about it, there are ways to go about it..
I have always known you are not too smart but calm down

Enugu airport is a federal airport ...and u need to build the aviation hub in the airport ...enugu promised to give federal government 2 times the land back but they said no

U need federal government permission to build a sea port ...and they can delay it the way they want

Bill debate ...the electoral act that was passed was it signed ?

You how do you think a state can develop in the present nigerian structure ...and why haven't any state done it

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