Northern states, one oil-producing state declared bankrupt in Nigeria

Published

 

on

 September 10, 2021

By

 Olalekan Fakoyejo

Seven Northern states and one Southern state have been declared bankrupt based on their internally generated revenue in comparison with their Federal Accounts Allocation (FAA).

Jigawa, Katsina, Adamawa, Yobe, Niger, Taraba and Benue were tagged insolvent states alongside oil-producing Bayelsa State by the Annual State Viability Index (ASVI) of Economic Confidential.

The status of the states were determined by percentage arrived at when their IGR and FAA was compared, and states with IGR of less than 10 percent of their federal allocation are classified insolvent.

Bankrupt states in Nigeris by 2020

Bayelsa topped the list of the poorest states in Nigeria as it received a total of N152.54 billion as FAA in 2020, but generated only N12.18 billion as IGR – this represents 8.0 percent of earnings from FAA.

Jigawa State came next with IGR of N8.6 billion in contrast to the N107 billion it received as allocation during the same period – this represented 8.1 percent of total earning.

Katsina recorded 8.8 percent after generating N11.3 billion against the N130 billion federal allocation.

Adamawa received N91 billion of FAA, but could only generate N8.3 billion IGR, putting the differences at 9.1 percent.

Yobe state recorded N7.7 billion IGR, but got N84 billion federal allocation – this represented 9.2 percent in total receipt.

Niger State was next with 9.6 percent as its internally generated revenue was put at N10.5 billion compared to N109 billion of FAA.

Taraba generated N8.1 billion as IGR, but was given N82 billion from federal allocation, putting its difference in earnings at 9.8 percent.

Benue completed the list with IGR of N10.46 billion, far below the N106 billion it received as FAA, representing 9.8 percent last year.

Best performing states in Nigeria

Lagos state topped the list of best performing states in Nigeria as its IGR, N418 billion, surpassed its N299 billion federal allocation, putting its earnings difference at 139 percent in 2020.

Rivers State came next with N117 billion to comparison to the N198 billion secured from the FAA – this represents 58 percent difference.

Read also: Nigeria’s oil-producing states increase to 10, as Bauchi, Gombe continue to wait

Ogun State finished last year with N50 billion as internally generated revenue, falling below the N88 billion FAA it received, but its revenue difference stood at 57 percent.

Kaduna State is fourth on the list, obtaining N124 billion federal allocation, while generating N50 billion IGR, representing 40 percent difference.

Oyo made the list with 29.7 percent difference having generated N38 billion in IGR, but received federal allocation to the tune of N127 billion.

Anambra State’s internally generated revenue was put at N28 billion, but it got N94 billion as federal allocation, representing 29.6 percent in earnings.

More problem for the seven insolvent states

The seven states are believed can’t survive without federal allocation, which is set to drop following a Rivers State court ruling that the Federal Government is not authorised by the constitution to demand and collect non-import value added taxes.

Justice Stephen Pam, who presided over the ruling stated that the Concurrent Legislative List of the constitution empowered only states and its agent(s) to collect non-import vat within their region.

This will reduce the tax revenue shared by FG to states by N1.64 trillion if the ruling stands, and it will reduce the total allocation of low-income generating states like Bayelsa, Katsina, Adamawa, Yobe, Niger, Taraba, Benue, Kano and others.

Join the









Copyright © 2021 Ripples Nigeria. All rights reserved.

Osetigo!

Which kain insolvent
The states should simply be merged back to the states they were created from... Or to neighbouring states with stable IGR

What's the point if the name NIGERIA covering them is broke and bankrupt.

At least Bayelsa is contributing much to the federal purse unlike the others.

Break up Nigeria NOW!

Let everyone bear their papa name.

Abi, se won bi somi m'eja ni?

I don’t understand why Bayelsa will be among, Bayelsa is a big Oil producing state, there population is not that much, have vast land for Agriculture purposes, blessed with Rivers for fishing and have Islands that can be developed for tourist attraction.

I believe the royalty been paid to Bayelsans by IOCs/LOCs and FG is making those guys to be lazy.

I have said it before Ortom hide under banditry to cover his laziness as a governor, he makes noice in order to distract the populace from knowing his level of poor performance.

Just na..dis VAT matter is killing them.

This is why they don't want each state to start collecting their VATs, no food for lazy men

Millimann:
At least Bayelsa is contributing much to the federal purse unlike the others.

Did you read the article my brother?

Try to read before commenting, statistically Bayelsa is the poorest and laziest.

It’s for a while. They will find a way. This has to be done to break them off the feeding bottle shackles.

NOC1:


Did you read the article my brother?

Try to read before commenting

If everybody answer him papa name, Bayelsa no go suffer. Take it or leave it. I read the article.

How many of the oil companies that pay VAT have their offices in Bayelsa? Injustices need to be corrected in this country.

NOC1:
I don’t understand why Bayelsa will be among, Bayelsa is a big Oil producing state, there population is not that much, have vast land for Agriculture purposes, blessed with Rivers for fishing and have Islands that can be developed for tourist attraction.

I believe the royalty been paid to Bayelsans by IOCs/LOCs and FG is making those guys to be lazy.

I have said it before Ortom hide under banditry to cover his laziness as a governor, he makes noice in order to distract the populace from knowing his level of poor performance.

What is natural resources if not explored?

I have been saying it on these forum how Ijaw started the insecurities we are facing in Nigeria by bombing pipelines and kidnapping expatriates. Please don’t point fingers, blame the people that started terrorism in Niger Delta. They chased investors away.

cheruv:
Which kain insolvent
The states should simply be merged back to the states they were created from... Or to neighbouring states with stable IGR

Gbam

With the way Nigeria �� is going. 10yrs from now it may not exist

Millimann:


If everybody answer him papa name, Bayelsa no go suffer. Take it or leave it. I read the article.

He who is not faithful with the little under his care, will not be faithful when much is giving to him.

The laziness of Bayelsa is in born, if they states to manage their IGR, it will take over 20years for some states to stabilize because they have nothing on ground.

143WaZoBia:

What is natural resources if not explored.
I have been saying it on these forum how Ijaw started the insecurities we are facing in Nigeria by bombing pipelines and kidnapping expatriates. Please don’t point fingers, blame the people that started terrorism in Niger Delta. They chased investors away.

Agreedddd

The northern states that are broke is understandable, they are lazy parasites dependent on the south, but Bayelsa?

An oil producing state is bankrupt...nawa.

And katsina, jigawa and adamawa state produce over +3million votes during election from +3 million useless irresponsible untaxable wastes of humans leeching on others

Omoluabi1stborn:


Agreedddd

The truth need to be told.

cheruv:
Which kain insolvent
The states should simply be merged back to the states they were created from... Or to neighbouring states with stable IGR

I don't think the Igbo-speaking people of Rivers state will want Bayelsa reattached to Rivers state, for Ijaws to commence their usual marginalisation games against the other ethnic groups.

But as the only Ijaw state, one will expect that the state is run well as a beacon of hope to Ijaws elsewhere, so it is very disappointing that they appear in the bankruptcy list with Aboki states

OfoIgbo:


I don't think the Igbo-speaking people of Rivers state will want Bayelsa reattached to Rivers state, for Ijaws to commence their usual marginalisation games against the other ethnic groups.

But as the only Ijaw state, one will expect that the state is run well as a beacon of hope to Ijaws elsewhere, so it is very disappointing that they appear in the bankruptcy list with Aboki states

They are taking direct bribe from FG how do yu tax that?

AntiBMC:
The northern states that are broke is understandable, they are lazy parasites dependent on the south, but Bayelsa?

An oil producing state is bankrupt...nawa.

Maybe because that place is swap, dem no get much companies and industrial activities.

Or maybe dem militant chase away the companies via insecurities

OfoIgbo:


I don't think the Igbo-speaking people of Rivers state will want Bayelsa reattached to Rivers state, for Ijaws to commence their usual marginalisation games against the other ethnic groups.

But as the only Ijaw state, one will expect that the state is run well as a beacon of hope to Ijaws elsewhere, so it is very disappointing that they appear in the bankruptcy list with Aboki states

It was because of Bayelsa that I put the other caveat of neighbouring states with stable IGR kos i know that the Igboid majority of Rivers State won't want Bayelsa back.. this is a position that they've held as far as the 1958 willink conference
Bayelsa should be merged to delta state

And most of this state have more votes than rivers state and anambra.

Bayelsa don bankrupt.


They should allow our Igbo brothers from Osekwenike govern the state for full economic revitalization.

cheruv:

[s]It was because of Bayelsa that I put the other caveat of neighbouring states with stable IGR kos i know that the Igboid majority of Rivers State won't want Bayelsa back.. this is a position that they've held as far as the 1958 willink conference
Bayelsa should be merged to delta state[/s]

Ipig clowns....

OfoIgbo:


[s]I don't think the Igbo-speaking people of Rivers state will want Bayelsa reattached to Rivers state, for Ijaws to commence their usual marginalisation games against the other ethnic groups.

But as the only Ijaw state, one will expect that the state is run well as a beacon of hope to Ijaws elsewhere, so it is very disappointing that they appear in the bankruptcy list with Aboki states[/s]

See them ipig miscreants

Kinematics:



Ipig clowns....

Onye mgbu

NOC1:


He who is not faithful with the little under his care, will not be faithful when much is giving to him.

The laziness of Bayelsa is in born, if they states to manage their IGR, it will take over 20years for some states to stabilize because they have nothing on ground.

I understand you bro.

My point doesn't take away the fact that they need to look inwards and be more efficient.

have vast land for Agriculture purposes, blessed with Rivers for fishing and have Islands that can be developed for tourist attraction.

When you don’t have info about a place, you should keep quiet and ask questions, that way you don’t sound stupidt or senile.