₦airaland Forum

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High IGR Isn’t Always a Sign of True Progress

Rising internally generated revenue might look good on paper, but it can sometimes paint a misleading picture of a region’s real economic health. Here’s why relying too much on IGR for measuring growth can miss the mark:

1. It Doesn’t Mean People Are Actually Better Off
When a region collects more revenue, it doesn’t necessarily mean that the economy is growing in a way that benefits everyone. Sometimes, the government increases taxes or adds more fees, which raises revenue but leaves people with less money to spend, save, or invest in their own futures. True economic growth should improve people’s lives, not just fill government accounts.

2. Higher IGR Can Add Pressure to Everyday People and Small Businesses
When governments aim to increase revenue quickly, they sometimes create new taxes or raise existing ones, often affecting small businesses and regular folks. This can make it harder for businesses to grow and thrive, and it can discourage new businesses from starting up. Economic growth should make it easier—not harder—for people and businesses to succeed.

3. It Doesn’t Show Whether the Economy Is Fair for Everyone
Just because IGR is rising doesn’t mean everyone is doing well. For example, a region could see higher IGR from taxes that affect certain groups more heavily, like small business owners or renters. This can actually increase inequality, leaving the gap between the wealthy and less well-off even wider.

4. Short-Term Fixes Can Hurt Long-Term Progress
Governments sometimes boost IGR by creating one-time fees or taxes. This raises money in the short term but doesn’t build a sustainable path for long-term growth. True economic growth requires a stable base—like supporting new industries, building infrastructure, and creating jobs—rather than just relying on temporary revenue spikes.

5. Focusing on Revenue Alone Can Miss the Bigger Picture
When governments focus mostly on collecting taxes, they can overlook the real investments needed to grow the economy, like building roads, improving education, or supporting healthcare. These are the things that help create jobs, attract new businesses, and ultimately improve quality of life. Revenue is important, but it’s just one piece of the puzzle.

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So, What Really Matters?

For a more meaningful view of economic growth, we need to look beyond high IGR. Real growth happens when people see better job opportunities, fair wages, better schools, and affordable healthcare. Sustainable progress should lift the whole community, not just add to government funds. When we see the economy this way, we focus on building a future that benefits everyone, not just a bottom line.


Bidemi Ogunsanya

IGR that more than 70% goes back to the pockets of a few politicians is what we celebrate as growth in Nigeria.

Only in Nigeria is IGR used as a yardstick for wealth and development.

Sheuns:
IGR that more than 70% goes back to the pockets of a few politicians is what we celebrate as growth in Nigeria.

Only in Nigeria is IGR used as a yardstick for wealth and development.

That is Lagos Ibadan expressway economists analysis

Sheuns:
IGR that more than 70% goes back to the pockets of a few politicians is what we celebrate as growth in Nigeria.

Only in Nigeria is IGR used as a yardstick for wealth and development.

Even as an engineer I read economics for fun
Did MBA later, thinking of doing MSC and PhD later

I have never seen anywhere were revenue generated is used to rate or analyze an economy

The fact that Tax heavens exist makes this funny 🤣🤣
Or mineral based economy like Saudi, UAE, brunia Monaco and the rest that pride themselves as tax free regions or states

Banta or joke apart The Yoruba Nation needs to wake up and smell the coffee, they are slowly losing their love for education and it is showing

You SE guys should stop worryingp, the next statisense stats will favor you and we will not see your cry again. You will queue behind statisense when they release their next stats.

You have the lowest population in Nigeria that's why you are all bent on GDP per capital.
Nigeria is broke, Nigeria is broke. Ok let the governors raise money but because the SE governors can not raise money. Raising the money that we badly need has become a bad thing. These SE people will protect their useless leaders at all cost.

mrvitalis:
Even as an engineer I read economics for fun
Did MBA later, thinking of doing MSC and PhD later

I have never seen anywhere were revenue generated is used to rate or analyze an economy

The fact that Tax heavens exist makes this funny 🤣🤣
Or mineral based economy like Saudi, UAE, brunia Monaco and the rest that pride themselves as tax free regions or states

Banta or joke apart The Yoruba Nation needs to wake up and smell the coffee, they are slowly losing their love for education and it is showing

All these because the SE governors can not generate money. That's how Obi scammed you people. Well Obi didn't really scam anybody, it was you people trying to scam Nigeria and Nigerians with Obi

@Ariesbull, you challenged me to present the name of the first dictionary ever written in Igbo that was authored by Bishop Ajayi Crowder, I did but you kept quiet

What happened

alanto:
All these because the SE governors can not generate money. That's how Obi scammed you people. Well Obi didn't really scammed, it was you people trying to scam Nigeria and Nigerians with Obi

Is your states better than the SE states no generating money?

I don't understand this ignorance.
Revenue is the only instrument that a government has to influence the GDP or wealth of his state or country. How do you increase GDP or redistribute wealth when there is no revenue?
The question here is do you rely on a revenue that is being "shared" to you or you self-generate.
Any idiot can spend! The work is in how to generate; which makes it one of the important KPI of a leader.
Ok. Don't generate through tax, generate through other means! Just don't infect others with your ignorance.
It's actually a failure for you to say I have huge GDP but low or no IGR. Big shame!

mrvitalis:
Even as an engineer I read economics for fun
Did MBA later, thinking of doing MSC and PhD later

I have never seen anywhere were revenue generated is used to rate or analyze an economy

The fact that Tax heavens exist makes this funny 🤣🤣
Or mineral based economy like Saudi, UAE, brunia Monaco and the rest that pride themselves as tax free regions or states

Banta or joke apart The Yoruba Nation needs to wake up and smell the coffee, they are slowly losing their love for education and it is showing

It's amazing how the ignorant is the one that thinks others are not smart.
Your submissions reeks of ignorance and sheer inanity.
Grow your IGR! If tax is not your strategy embrace others lines of revenue like Saudi, UAE....!
Don't rationalize failure!

Buccalcavity2:
I don't understand this ignorance.
Revenue is the only instrument that a government has to influence the GDP or wealth of his state or country. How do you increase GDP or redistribute wealth when there is no revenue?
The question here is do you rely on a revenue that is being "shared" to you or you self-generate.
Any idiot can spend! The work is in how to generate; which makes it one of the important KPI of a leader.
Ok. Don't generate through tax, generate through other means! Just don't infect others with your ignorance.
It's actually a failure for you to say I have huge GDP but low or no IGR. Big shame!

IGR in of itself is not a bad thing and is a good indicator of how a economy is performing! But i see two issues here: *First is that the overall IGR is made up of different components, one being tax on businesses and coy profits. When some argue that this type of tax can either benefit or hinder a coys capacity to continue in business and grow, they normally do so against the backdrop of the difficult business environment coys have to contend with in Nigeria today, hence they argue in favour of limited taxation on businesses and coy profits; *another issue is that some take exception to smug, derogatory and insulting comments from those mocking others states/regions performance when political and economic factors that have disproportionately favoured certain states/regions over the decades are ignored. Does anyone think that had say Rivers, Imo, Bayelsa or Akwa-Ibom been independent states in their own right, that they wouldn’t have performed much better than is presently the case….and even bettered Lagos that for decades has benefitted from federal gov’t decisions and policies, and the efforts of all Nigerians!?

Buccalcavity2:
It's amazing how the ignorant is the one that thinks others are not smart.
Your submissions reeks of ignorance and sheer inanity.
Grow your IGR! If tax is not your strategy embrace others lines of revenue like Saudi, UAE....!
Don't rationalize failure!

Is there any aspect of development South West is better than South East even with your taxing please tell us

mrvitalis:
Is there any aspect of development South West is better than South East even with your taxing please tell us

My brother. I'm not into tribalism nonsense or dick measurements!
I definitely condemn states that are not generating enough revenue! And condemn those that rationalize such failures coz of ethnic considerations.
And yes states with higher revenue have bigger war chest for bigger projects! That's a fact!

Higher IGR with lower Development is criminality
Fraud
Corruption and more.

Buccalcavity2:
My brother. I'm not into tribalism nonsense or dick measurements!
I definitely condemn states that are not generating enough revenue! And condemn those that rationalize such failures coz of ethnic considerations.
And yes states with higher revenue have bigger war chest for bigger projects! That's a fact!

Bigger war chest and yet data points to those with lower IGR are doing better

IGBOPROMISE1:
IGR in of itself is not a bad thing and is a good indicator of how a economy is performing! But i see two issues here: *First is that the overall IGR is made up of different components, one being tax on businesses and coy profits. When some argue that this type of tax can either benefit or hinder a coys capacity to continue in business and grow, they normally do so against the backdrop of the difficult business environment coys have to contend with in Nigeria today, hence they argue in favour of limited taxation on businesses and coy profits; *another issue is that some take exception to smug, derogatory and insulting comments from those mocking others states/regions performance when political and economic factors that have disproportionately favoured certain states/regions over the decades are ignored. Does anyone think that had say Rivers, Imo, Bayelsa or Akwa-Ibom been independent states in their own right, that they wouldn’t have performed much better than is presently the case….and even bettered Lagos that for decades has benefitted from federal gov’t decisions and policies, and the efforts of all Nigerians!?

Brother stop rationalizing failure by complicating simple concepts.
You agree that IGR is not just about tax. If tax doesn't work for a state, chose another "component" na. The argument about benefit for Lagos is stale. Look at states like Ogun, Kaduna, Edo...No excuses. It's why we voted for governors, to focus on their areas of strength and yet remain competitive!
In fact disadvantage should be a reason for you to perform not an excuse for failure. Compare Ogun and Bayelsa and see which is a better thinker between both governors.

mrvitalis:
Is there any aspect of development South West is better than South East even with your taxing please tell us

State with higher IGR has capacity to embark on mega project like Lagos is currently doing with Light rail.

Ttalk:
State with higher IGR has capacity to embark on mega project like Lagos is currently doing with Light rail.

Lmaooo light rail is a very unprofitable business... Any state can borrow n build it.. But it takes a fool to see the economic analysis of light train in Nigeria n still go ahead with it


It's a feel good project... Has no economic importance

You guys really need to read up economics... With APC I'm power won't be surprised to see Nigerian GDP Bellow 100 billion dollars soon

mrvitalis:
Lmaooo light rail is a very unprofitable business... Any state can borrow n build it.. But it takes a fool to see the economic analysis of light train in Nigeria n still go ahead with it


It's a feel good project... Has no economic importance

You guys really need to read up economics... With APC I'm power won't be surprised to see Nigerian GDP Bellow 100 billion dollars soon

What is essence of government?

I will excuse your ignorance because you have know basic knowledge about the primary purpose of a government.

In a capitalism government infrastructure are set up to meet such needs where private businesses would not want to divest into because of poor returns.

Infrastructure are a necessity for a government to provide social security in areas that requires huge investments.
That is why government built 2nd Niger bridge.

Ttalk:
What is essence of government?

I will excuse your ignorance because you have know basic knowledge about the primary purpose of a government.

In a capitalism government infrastructure are set up to meet such needs where private businesses would not want to divest into because of poor returns.

Infrastructure are a necessity for a government to provide social security in areas that requires huge investments.
That is why government built 2nd Niger bridge.

Infrastructure being a necessity is where APC gets it wrong, that's why our economy keep tanking under them

The main essence of government is to make your people more comfortable

Light rail rides cost 2 dollars mostly to break even, why build something that you don't have population for

Instead of focusing on making your people richer you re building projects to brag about

If Lagos GDP per capita is 10k dollars or 15k dollars then light rail would become needed then you can build it... You are building light rail for people with income of less than 200 dollars a month... Then spend billions to keep it running

E be like this IGR of a thing really pain some peeps
Why can't they get over with it and move on🤦🏾

mrvitalis:
Even as an engineer I read economics for fun
Did MBA later, thinking of doing MSC and PhD later

I have never seen anywhere were revenue generated is used to rate or analyze an economy

The fact that Tax heavens exist makes this funny 🤣🤣
Or mineral based economy like Saudi, UAE, brunia Monaco and the rest that pride themselves as tax free regions or states

Banta or joke apart The Yoruba Nation needs to wake up and smell the coffee, they are slowly losing their love for education and it is showing

U are an Engineer?
When did you register with NSE?

IGR is no longer good because it's not favoring some people.
An entity can execute more financial projects if it has the capacity to generate money to back up for it.
Lagos can execute those projects while Anambra can't, the difference is IGR not federal allocation.
U can get Ioan if u can generate higher IGR, it also has a way of influencing ur GDP, all these factors add to ur financial standing as a country.
This is not a 2by2 shop analysis.

IGBOPROMISE1:
IGR in of itself is not a bad thing and is a good indicator of how a economy is performing! But i see two issues here: *First is that the overall IGR is made up of different components, one being tax on businesses and coy profits. When some argue that this type of tax can either benefit or hinder a coys capacity to continue in business and grow, they normally do so against the backdrop of the difficult business environment coys have to contend with in Nigeria today, hence they argue in favour of limited taxation on businesses and coy profits; *another issue is that some take exception to smug, derogatory and insulting comments from those mocking others states/regions performance when political and economic factors that have disproportionately favoured certain states/regions over the decades are ignored. Does anyone think that had say Rivers, Imo, Bayelsa or Akwa-Ibom been independent states in their own right, that they wouldn’t have performed much better than is presently the case….and even bettered Lagos that for decades has benefitted from federal gov’t decisions and policies, and the efforts of all Nigerians!?

Can u give us a list of those decisions and policies that the federal government carried out to benefit Lagos and deprive the states u mentioned?

mrvitalis:
Infrastructure being a necessity is where APC gets it wrong, that's why our economy keep tanking under them

The main essence of government is to make your people more comfortable

Light rail rides cost 2 dollars mostly to break even, why build something that you don't have population for

Instead of focusing on making your people richer you re building projects to brag about

If Lagos GDP per capita is 10k dollars or 15k dollars then light rail would become needed then you can build it... You are building light rail for people with income of less than 200 dollars a month... Then spend billions to keep it running

This is the problem the àvèragè obident has, infrastructures includes roads, hospitals, schools, good sanitation network, water projects, street lightening etc etc.
Somehow an Obident is saying these are not important because Obi said so.
How can people be comfortable without good roads?
Constructing roads is expensive, why didn't you put it there u are putting light rail?
Many states are using okada because they don't have a proper road network to link places that will ease the movement of BRT buses that will be way cheaper than okada, is the use of okada comfortable?
Using a train to travel from Abuja to Kaduna is way more comfortable than using a public bus in same route, how's light rail not important?
A good sanitation network makes people comfortable, some people are complaining about bad sanitation in Lagos and someone is saying infrastructures are not important.
Infrastructures is what delivers what to ur showers and kitchen sink, they are not part of what makes people comfortable?
Infrastructures are what gives u reliable health facilities, infrastructures makes ambulances run in the streets when u pull a call through to them.
Building good sporting facilities and arena is part of infrastructures, are u telling me that such doesn't make people happy?
No musician can tour SE states, why?
Because of Iàck of arena, are they not part of infrastructures?

Use ur bràiñ when saying things, analyze events in isolation from politics and what politician said.

JagabanBorgu:
This is the problem the àvèragè obident has, infrastructures includes roads, hospitals, schools, good sanitation network, water projects, street lightening etc etc.
Somehow an Obident is saying these are not important because Obi said so.
How can people be comfortable without good roads?
Constructing roads is expensive, why didn't you put it there u are putting light rail?
Many states are using okada because they don't have a proper road network to link places that will ease the movement of BRT buses that will be way cheaper than okada, is the use of okada comfortable?
Using a train to travel from Abuja to Kaduna is way more comfortable than using a public bus in same route, how's light rail not important?
A good sanitation network makes people comfortable, some people are complaining about bad sanitation in Lagos and someone is saying infrastructures are not important.
Infrastructures is what delivers what to ur showers and kitchen sink, they are not part of what makes people comfortable?
Infrastructures are what gives u reliable health facilities, infrastructures makes ambulances run in the streets when u pull a call through to them.
Building good sporting facilities and arena is part of infrastructures, are u telling me that such doesn't make people happy?
No musician can tour SE states, why?
Because of Iàck of arena, are they not part of infrastructures?

Use ur bràiñ when saying things, analyze events in isolation from politics and what politician said.

Lmaooo I never said infrastructure is not good or not important but there is time for everything

Building a house or buying a car is a good thing right? Imagine borrowing money to do it when you earn 200k monthly

All we are saying is " do not borrow to build feel good projects "

Aregbe did it in osun it failed
El rufai did it in Kaduna it has failed
Buhari did it for 8 years it failed

But somehow u want to keep doing same thing and expect different results? Lmaooo

Cocoa house syndrome is real

mrvitalis:
Lmaooo I never said infrastructure is not good or not important but there is time for everything

Building a house or buying a car is a good thing right? Imagine borrowing money to do it when you earn 200k monthly

All we are saying is " do not borrow to build feel good projects "

Aregbe did it in osun it failed
El rufai did it in Kaduna it has failed
Buhari did it for 8 years it failed

But somehow u want to keep doing same thing and expect different results? Lmaooo

Cocoa house syndrome is real

U can earn 200k monthly and comfortably borrow to build and buy a car simultaneously if u have a good financial plan, people earning 150k are doing it and doing it well, so it's a flawed analysis, by the way, ur analysis does not align with infrastructural development.

Egypt is borrowing heavily to build projects and u can't develop ur society without borrowing unless u have a huge mineral deposit and few population like Qatar, Saudi and the likes.

If u can't borrow to build infrastructures, then ur leadership is p00r, what u should advice and seek is that borrowing and building should be done to near perfection, if a govt borrow funds, spend it on infrastructural development without embezzlement and the right infrastructures, it's 100% right and progressive, to assume that u can't borrow to build infrastructures because Lienus said so is wrong.

alanto:
You SE guys should stop worryingp, the next statisense stats will favor you and we will not see your cry again. You will queue behind statisense when they release their next stats.

You have the lowest population in Nigeria that's why you are all bent on GDP per capital.
Nigeria is broke, Nigeria is broke. Ok let the governors raise money but because the SE governors can not raise money. Raising the money that we badly need has become a bad thing. These SE people will protect their useless leaders at all cost.

Lol
SE has the lowest population but population of traders in Onitsha main market is more than your entire State. Dey play.

JagabanBorgu:
U can earn 200k monthly and comfortably borrow to build and buy a car simultaneously if u have a good financial plan, people earning 150k are doing it and doing it well, so it's a flawed analysis, by the way, ur analysis does not align with infrastructural development.

Egypt is borrowing heavily to build projects and u can't develop ur society without borrowing unless u have a huge mineral deposit and few population like Qatar, Saudi and the likes.

If u can't borrow to build infrastructures, then ur leadership is p00r, what u should advice and seek is that borrowing and building should be done to near perfection, if a govt borrow funds, spend it on infrastructural development without embezzlement and the right infrastructures, it's 100% right and progressive, to assume that u can't borrow to build infrastructures because Lienus said so is wrong.

You obviously don't understand the difference between borrowing to build NEEDs
And borrowing to build WANTS

I dome already zero my mind GDP is already below 200 billion 100 billion GDP here we come with mindset like this the slop is not stopping anytime soon

IGR is not the true test of economic indices and progress.

mrvitalis:
You obviously don't understand the difference between borrowing to build NEEDs
And borrowing to build WANTS

I dome already zero my mind GDP is already below 200 billion 100 billion GDP here we come with mindset like this the slop is not stopping anytime soon

Is there any project that Buhari built that's not a needed project?
U don't criticize because u don't like the person in power, that's the problem we face in this country, critîcizè because it affects ur society even when u like the person in power.

GDP is below 200m but Lagos GDP is almost 200m, now does it make sense to u?

I saw a data last year where they said, Nigeria has over 50% of it's population living in urban areas but same Nigeria has 37% internet access, does that data make sense?
Not every sh!.tty data u see is vaIid.
It's that simple.


I asked u earlier on, how did you become an engineer?
U are registered with NSE?

EmekaA125:
IGR is not the true test of economic indices and progress.

It is part of the true test just like GDP is.