₦airaland Forum

nickxtra:
Edo state, from one of the poorest states in the Federation, has emerged from the Governorship of Oshiomole, as among the most thriving states in the country. It is one of the few states that can survive without federal allocations. I doubt if your states can boast of this. Check our the indices on goggle

All these lies about surviving without federal allocation as if anyone is forced to collect the money?
Stop the empty boast. Renounce the allocation, then we will know that you can survive without it. Until then, you are just spinning yarns and okpata baseless bragging.
What POLICIES and infrastructures did the fake comrade provide for the state to become "one of the MOST thriving"? And how many states are actually in this your group of "most thriving"?
What makes the state most thriving? Low rate of unemployment? High rate of industrialisation? Big pool of appropriately skilled labour? Or what?
You obviously don't understand that increasing IGR simply means that the people are paying more taxes, directly and indirectly. An intelligent person would also be concerned that the increased IGR is invested for further development of the state.
After eight years of Oshiomole, is there clean water for the entire state from the tap?
Or do we have all the children enrolled in public schools that are staffed with professional teachers instead of youth corpers?
Just two basic things oh.

PastorAji:
Atan-Agbara road also is "the Biblical Camel passing through the eye of a NEEDLE
That road needs total reconstruction.......

God bless u sir for confirming this. It's a total shit hole. Last night an elderly lady slipped on a muddy footpath almost into the ditch. I was almost in tears

seguno2:
All these lies about surviving without federal allocation as if anyone is forced to collect the money?
Stop the empty boast. Renounce the allocation, then we will know that you can survive without it. Until then, you are just spinning yarns and okpata baseless bragging.
What POLICIES and infrastructures did the fake comrade provide for the state to become "one of the MOST thriving"? And how many states are actually in this your group of "most thriving"?
What makes the state most thriving? Low rate of unemployment? High rate of industrialisation? Big pool of appropriately skilled labour? Or what?
You obviously don't understand that increasing IGR simply means that the people are paying more taxes, directly and indirectly. An intelligent person would also be concerned that the increased IGR is invested for further development of the state.
After eight years of Oshiomole, is there clean water for the entire state from the tap?
Or do we have all the children enrolled in public schools that are staffed with professional teachers instead of youth corpers?
Just two basic things oh.

Pls wait and let me attend to clients. I will be back after attending to a more productive and rewarding confrontation from my clients. Meanwhile, remain glued to Nairaland with your senseless and selfish arguments.

OP thank you for this information

Iamzik:
How can you say SE is doing terribly when they are the ones DEVELOPING all these states listed above?
If you want your state IGR to increase, just welcome more DEVELOPERS to your state.

Meanwhile I see all the billions alright but what visible impact can you see on ground in our various state? Honest assessment please

South East is a geographical location. It is not a people. In all the regions, you have people of all creed & persuasions, tribes and nationalities contributing one way or the other. I think everyone would agree that Igbos are the biggest contributors to the development of other regions.

However, a big and sincere question must be asked? Why are Igbos with all the wealth and power they control very unwilling to invest in the south east? It surely isn't enough to build mansions and hotels in our villages. Building a strong economic base is what is essential and entirety of Igbo must ignore whatever ploy or machination they feel the FG plots against them, and come together to construct an ambitious workable blueprint for its development. The time for whining is over. The people of SE are too rich to keep expecting crumbs from the FG.


As per what the states have on ground to show for the IGR, well if you look at those figures, you'd realise that the states with higher IGR usually end up with better infrastructure than those with less.Plus the faster the can wean off the FG's feeding bottle, the more likely their development would be hastened. Look at whats happening with Lagos!

Delta State with their borehole levy is still lacking behind in revenue generation.

nickxtra:
Pls wait and let me attend to clients. I will be back after attending to a more productive and rewarding confrontation from my clients. Meanwhile, remain glued to Nairaland with your senseless and selfish arguments.

Running away

For how long are we going to continue celebrating figure instead of development? How many of us can boast that these figures measure Up with what is on ground in our various states?
Truth is that the youth of this country are lagging far behind when it comes to reasoning, same way we are shouting budget should passed and no one has remembered to ask how the previous was implemented...l have actually travelled to many states and l can tell you every state is underperforming including the almighty Lagos..

For the figures believe them at your own peril especially Ebonyi, ebonyi figure is an estimated figure not the real figure, they have refused to make open their igr and l believe over the years their igr has greatly increased,a state that boast of so many quarry company including Berger,agric products,pipe production and some transport companies with huge taxation. Only God knows the state that is lying but that certainly not my business until they start paying salaries, employment increases n infrastructure improves

PapaBrowne:
I think Akwa Ibom experienced a great leap. It was 14bn for 2015 and leaped to 23bn in 2016.
For the SE, I think it has more to do with attitudinal disposition towards taxes than it has to do with economics.
One thing to note though which is actually a good thing, IGR is not proportional to oil revenue or federal allocation. It's actually a function of the willingness and capacity of a state to actually generate resources for itself.

States govt have the power to impose tax on oil companies and other ancillary industries with oil facilities domiciled in their backyard , no? More federal allocation/oil revenue implies more oil related activity which should be correlated to higher state tax. If this isn't the case, these oil producing states may very well be less inclined to collect their tax revenues like you suggested. Who does that?

Habeyy:
bad guy, this is how it works ,...thou they don't collect tax on import but those goods can be taxed by the state government when it enters their market,passes through their roads and when it services their citizens and institution...

Thanks to d op..one of the finest thread av seen recently

Yeah, i know that but that was not what the guy meant hence my question to him.

Good one bro

PapaBrowne:
South East is a geographical location. It is not a people. In all the regions, you have people of all creed & persuasions, tribes and nationalities contributing one way or the other. I think everyone would agree that Igbos are the biggest contributors to the development of other regions.

However, a big and sincere question must be asked? Why are Igbos with all the wealth and power they control very unwilling to invest in the south east? It surely isn't enough to build mansions and hotels in our villages. Building a strong economic base is what is essential and entirety of Igbo must ignore whatever ploy or machination they feel the FG plots against them, and come together to construct an ambitious workable blueprint for its development. The time for whining is over. The people of SE are too rich to keep expecting crumbs from the FG.


As per what the states have on ground to show for the IGR, well if you look at those figures, you'd realise that the states with higher IGR usually end up with better infrastructure than those with less.Plus the faster the can wean off the FG's feeding bottle, the more likely their development would be hastened. Look at whats happening with Lagos!

I am HungerBAD and i approve your message.

Our states need to be creative, systematic and progressive to be able to meet their developmental objectives.

We did it yesterday, and today we are doing it again .Call now to subscribe.

I am not surprised that Lagos came first. Nigerians are being taxed double in Lagos. Everything in Lagos is pay, pay and pay. See the list of payment we make in Lagos.

- You want to cross from VI or IKOYI to Lekki, you have to pay.
- You want to empty your domestic waste, you have to pay.
- You need water to drink, wash and bath, you have to pay.
- NEPA no bring light for 2 months, you have to pay.
- You want to urinate or pass faeces, you have to pay.

Name your own.

Did anybody notice the difference between the IGR of Lagos and Ebonyi? It is a pitiable pity. And they expect every state to pay equal minimum wage. Socialism is the best for this country. Bring according to your ability and take according to your need.

caleboxylic:
Guy, gburugburu failed here. He met an IGR of 20billion and in less than 2years he reported 14billion. He has a lot of questions to answer. I will only accept that figure if he tells us that the state didn't submit the last quarter report for the year in question.

Well, it seems easy to blame the governor, but FGN and most of the States recorded negative growth in revenue generation due to the recession. How could Enugu state's revenue in 2016 be higher when companies were downsizing or outrightly going bankrupt? Many workers who normally pay taxes were equally sacked during the period in review.

PapaBrowne:
South East is a geographical location. It is not a people. In all the regions, you have people of all creed & persuasions, tribes and nationalities contributing one way or the other. I think everyone would agree that Igbos are the biggest contributors to the development of other regions.

However, a big and sincere question must be asked? Why are Igbos with all the wealth and power they control very unwilling to invest in the south east? It surely isn't enough to build mansions and hotels in our villages. Building a strong economic base is what is essential and entirety of Igbo must ignore whatever ploy or machination they feel the FG plots against them, and come together to construct an ambitious workable blueprint for its development. The time for whining is over. The people of SE are too rich to keep expecting crumbs from the FG.


As per what the states have on ground to show for the IGR, well if you look at those figures, you'd realise that the states with higher IGR usually end up with better infrastructure than those with less.Plus the faster the can wean off the FG's feeding bottle, the more likely their development would be hastened. Look at whats happening with Lagos!

Intelligent comment sir.

I like the FG feeding bottle and weaning part. So funny but true

Neozy:
Did anybody notice the difference between the IGR of Lagos and Ebonyi? It is a pitiable pity. And they expect every state to pay equal minimum wage. Socialism is the best for this country. Bring according to your ability and take according to your need.

But Nigeria already practices socialism! It's just that it is called "federal allocation" ...

IGR is only a small part of the picture in analysing a state's financial sustainability. A high IGR matched with a high debt stock, the latter requiring huge debt repayment expenses, is unsustainable.

In many respects, it's the debt burden that is driving "high" IGR as states increase the tax burden on their residents to meet interest payments on their debts. Ultimately, states expenses are dominated by recurrent expenditure so this increased tax burden goes to pay public sector workers and interest payments.

States pay yields (interest) of circa 14% per year on their debt. A billion naira in debt will cost them circa N140m each year.

The only viable solution is to reduce the number of states to about 12. The current number is unsustainable and a drain on resources.

4Play:
IGR is only a small part of the picture in analysing a state's financial sustainability. A high IGR matched with a high debt stock, the latter requiring huge debt repayment expenses, is unsustainable.

Not necessarily. Britain accumulated gigantic debts during the course of its 18th century wars with France, which necessitated much higher taxes on the British than the French, but that didn't lead the British into bankruptcy; to the contrary, it was the low-taxing French government's inability to finance its much lower debt that led to the convening of the Estates General in 1789, which led in the end to the French Revolution. High-tax, high-debt Britain, on the other hand, went on to become the world's dominant economic and military power in the following decades.

In many respects, it's the debt burden that is driving "high" IGR as states increase the tax burden on their residents to meet interest payments on their debts. Ultimately, states expenses are dominated by recurrent expenditure so this increased tax burden goes to pay public sector workers and interest payments.

But nearly all of the states have recurrent expenditures well above their IGR, and this hasn't led to any consistent growth of IGR across the debtor states. The fact is that only a few states have both the tax-gathering capability and internal economies big enough to sustain such revenue drives, with the rest simply refusing to pay their workers for months on end.

States pay yields (interest) of circa 14% per year on their debt. A billion naira in debt will cost them circa N140m each year.

Are you talking real or nominal rates here? Because a nominal 14% per year is hardly onerous in an economy with 18% annual inflation. In any case, I am doubtful that all states will need to pay anything near the same rate of interest on their borrowings: who would buy Zamfara or Ekiti bonds with the same coupons offered by Lagos State? We need to take individual states' credit-ratings and budgets into account when passing judgement.

The only viable solution is to reduce the number of states to about 12. The current number is unsustainable and a drain on resources.

On this we are in full agreement. I would even go further and say the 6 zones are plenty, and in future any groups agitating for new states should have to show they would be viable without federal allocations, forswearing such subventions accordingly. Nothing would cool the ardor for new states faster than turning state-creation from an avenue for rent-seeking to a huge new tax burden.

Jetleeee:
As expected.

No surprises from Lagos and Ogun. One thing I'm so happy for as regards Ogun is the fact that her development is very organic

Good one for Oyo for improving on 2015. Ondo and Osun neither progressing nor regressing.

As for Ekiti, Ponmodele Ponmoyose is their governor. IGR is no big deal over there. Their own IGR is Ponmo and Bokoto

Rivers needs to make her revenue less oil-dependent but good one for her regardless. Delta is regressing. We all saw it coming anyway. I was surprised Ogun caught up so quick tho

I'm impressed with Akwa Ibom but she has the same problem as Rivers

Kano is doing well. Organic development!!

For Kaduna, El rufai's Magic wands seem to be doing wonders

Impressed with some other Northern States as well knowing how much damage Boko haram caused

I never really expected much from the Potopoto hamlets tbh. Enugu that has always been their local yampion regressed so I expect Anambra to topple her

Most often this data na 'wash' especially when compared to the deficit of infrastructure and poverty in the communities that litter the states of the federation. Some of these records dont agree with the realities on ground and this reminds me of the days when banks where doctoring their books to look profitable.
Some of these states dont have functional industires except a few markets and the civil service and thus cant pretend to be doing well in the books only to fail to meet salary and pension responsibilities.
Eko and Ogun are up there, but the rest have answers to provide. Ofcourse there are factors responsible for the growth of some states which may also be the undoing of other states. The multipiler effect of the presence of FG in Eko aint same in Kebbi, thus Kebbi cant attract more people like Eko. More people in a bouyant state translates to more business outfits and more or higher IGR
but if these states are doing good as they claim, then why the rush to Abuja for the monthly sharing of vanity before they can carry out their responsibilties

Statsocial:
Lol I thought some folks were accusing you of being an afonja yesterday. this nairaland is funny o.

They are confused bunch.
You know how they are, anyone that doesn't reason like tham is an afonja.

PapaBrowne:
South East is a geographical location. It is not a people. In all the regions, you have people of all creed & persuasions, tribes and nationalities contributing one way or the other. I think everyone would agree that Igbos are the biggest contributors to the development of other regions.

However, a big and sincere question must be asked? Why are Igbos with all the wealth and power they control very unwilling to invest in the south east? It surely isn't enough to build mansions and hotels in our villages. Building a strong economic base is what is essential and entirety of Igbo must ignore whatever ploy or machination they feel the FG plots against them, and come together to construct an ambitious workable blueprint for its development. The time for whining is over. The people of SE are too rich to keep expecting crumbs from the FG.


As per what the states have on ground to show for the IGR, well if you look at those figures, you'd realise that the states with higher IGR usually end up with better infrastructure than those with less.Plus the faster the can wean off the FG's feeding bottle, the more likely their development would be hastened. Look at whats happening with Lagos!

On point!
but you should be in the know of why the Easterners are investing outside. Alot of them are in the know, including fellow countrymen but sometimes you leave out some issues from the media but aint things changing gradually when compared to 1980?

comrChris:
For how long are we going to continue celebrating figure instead of development? How many of us can boast that these figures measure Up with what is on ground in our various states?
Truth is that the youth of this country are lagging far behind when it comes to reasoning, same way we are shouting budget should passed and no one has remembered to ask how the previous was implemented...l have actually travelled to many states and l can tell you every state is underperforming including the almighty Lagos..

For the figures believe them at your own peril especially Ebonyi, ebonyi figure is an estimated figure not the real figure, they have refused to make open their igr and l believe over the years their igr has greatly increased,a state that boast of so many quarry company including Berger,agric products,pipe production and some transport companies with huge taxation. Only God knows the state that is lying but that certainly not my business until they start paying salaries, employment increases n infrastructure improves

correct!
Some of these states under declared their figures and this accounts for the sudden wealth of some revenue staff while some declare higher figures so as to look responsible in the eye of the public but nothing to show by way development

omohayek:
Not necessarily. Britain accumulated gigantic debts during the course of its 18th century wars with France, which necessitated much higher taxes on the British than the French, but that didn't lead the British into bankruptcy; to the contrary, it was the low-taxing French government's inability to finance its much lower debt that led to the convening of the Estates General in 1789, which led in the end to the French Revolution. High-tax, high-debt Britain, on the other hand, went on to become the world's dominant economic and military power in the following decades.

Your example refutes a straw man. Of course, a government can sustain high debt if it has the tax revenues and most, importantly, if the debt is denominated in its own currency. I have addressed this in previous posts. But in judging the financial health of a state government in Nigeria, simply looking at its IGR tells you only very little without looking at the debt stock/obligations. This is a common sense proposition. Between Anambra and Oyo & Ogun states, which required FG's assistance in arranging a bailout?

Anytime it's pointed out that debt sustainability is a problem in Nigeria, there are always people who cite the debt of sovereign advanced powers like the US, Japan or in your case, the British Empire. The capacity of the British Empire to issue debt (using their own currency) sustainably is different to the capacity of Benue state (or any state in Nigeria). If much of your IGR barely covers interest payments, touting the IGR as a sign of robust financial health is misleading.

omohayek:
But nearly all of the states have recurrent expenditures well above their IGR, and this hasn't led to any consistent growth of IGR across the debtor states. The fact is that only a few states have both the tax-gathering capability and internal economies big enough to sustain such revenue drives, with the rest simply refusing to pay their workers for months on end.

My worry is IGR growth driven primarily by the need to service debt. There seems to be a strong correlation between high IGR and high debt. With the exception of Lagos, all states with major tax revenue growth have experienced an explosion in debt, in some cases requiring FG intervention to meet basic obligations like salary payments.

A typical Nigerian state spends most of its money on recurrent expenditure of which public sector wages are the main component. If debt is increased dramatically, higher interest payments add to the problem of high recurrent expenditure.

omohayek:
Are you talking real or nominal rates here? Because a nominal 14% per year is hardly onerous in an economy with 18% annual inflation. In any case, I am doubtful that all states will need to pay anything near the same rate of interest on their borrowings: who would buy Zamfara or Ekiti bonds with the same coupons offered by Lagos State? We need to take individual states' credit-ratings and budgets into account when passing judgement.

Not onerous you say? Have you not been following the news on the dire state of state government finances in the last few years? High inflation is no protection against high nominal yields if the former is caused by economic collapse arising from a currency crisis. High inflation is as a result of economic stress which has strained state's finances more than any offsetting benefits arising from negative real yields. Woe betide those states when they try to rollover their debt (solely paying the principal upon maturity is probably out of the question) as the yields they will be subjected to will be a sight to behold.

What is also lost in this debate is that a lot of those states with high IGR also have debt denominated in dollars, so their debt obligations (IGR is denominated in Naira) is rising faster than their IGR growth. Another reason why IGR only paints a small picture of a state's overall financial health.

I am not from the SE.......but this people really deserves an applaud, at least for their spirit of resilience and industrious life....
I always see some people online comparing themselves with the Southeasterners.,and I think it is a disgrace and a shame for someone to compare themselves with the easterners.
The southeast is a region...
++ with the smallest land mass
++A region that is not endowed with so much natural resource not even land..
++A region that fought a 3 years war and started from afresh.
++A region that do not have a seaport and no federal structure or presence.
++A region that everything you see on that land is solely indigenous
++A region that has no international airport, except the one newly built one last year at Enugu, Even the major flight there.airpeace is indigenous..
++A region without a functional rail line..
++A region left to generate their own electricity without a federal government intervention..
++A region without an international borders..etc
And they have risen up from nowhere to::::
++Grow one of the biggest market in west Africa(0nitsha)
++Grow an automobile hub in west Africa(Nnewi).....actually,some persons do not know how Nnewi started...you will appreciate the Easterners when you read the history of Nnewi
++Grow a manufacturing and fabricating hub in west Africa(Aba)
++Have rebuild their cities and far better than cities that where not destroyed during the war.
++Have taken over major industries in the nation..eg Nollywood, Football, and some giant industries across the nation.
++Have drastically reduce the level of ilitracy and poverty in the region, even comparing to other regions..
++Have raised so many industralist,intellectuals,millionaire and billionaires within a short time.
++Even with limited land, they have a brand name in agriculture (Abakaliki rice)etc
++Have improved in education even better than other region.
It only take people who are blessed and highly industrious to achieve all this with so many limitations...
People who never entertain the spirit of fear...
People who are aggressive to succeed in life...
It is a shame and a big disgrace for some regions who never had any limitations to compare themselves with the SE that have so many limitations...
IF a region is to be least develop both in infrastructures and finance,it should be the southeast...
But if they are better off than any region on any aspect, that region should be considered a total disgrace
Both in Education, finance,IGR,sports,entertainment, infrastructure, economy and other social amenities,,,That region that they are better of in any of this aspect should be considered as a total disgrace...
Other regions have come a long way..while this region just started from half way....if they compete with any region or overtake any region on any aspect..... that very region should be considered to be a national disgrace.
It is an advice....we all have to say the truth and make our leaders sit up.

I am not from the SE.......but this people really deserves an applaud, at least for their spirit of resilience and industrious life....
I always see some people online comparing themselves with the Southeasterners.,and I think it is a disgrace and a shame for someone to compare themselves with the easterners.
The southeast is a region...
++ with the smallest land mass
++A region that is not endowed with so much natural resource not even land..
++A region that fought a 3 years war and started from afresh.
++A region that do not have a seaport and no federal structure or presence.
++A region that everything you see on that land is solely indigenous
++A region that has no international airport, except the one newly built one last year at Enugu, Even the major flight there.airpeace is indigenous..
++A region without a functional rail line..
++A region left to generate their own electricity without a federal government intervention..
++A region without an international borders..etc
And they have risen up from nowhere to::::
++Grow one of the biggest market in west Africa(0nitsha)
++Grow an automobile hub in west Africa(Nnewi).....actually,some persons do not know how Nnewi started...you will appreciate the Easterners when you read the history of Nnewi
++Grow a manufacturing and fabricating hub in west Africa(Aba)
++Have rebuild their cities and far better than cities that where not destroyed during the war.
++Have taken over major industries in the nation..eg Nollywood, Football, and some giant industries across the nation.
++Have drastically reduce the level of ilitracy and poverty in the region, even comparing to other regions..
++Have raised so many industralist,intellectuals,millionaire and billionaires within a short time.
++Even with limited land, they have a brand name in agriculture (Abakaliki rice)etc
++Have improved in education even better than other region.
It only take people who are blessed and highly industrious to achieve all this with so many limitations...
People who never entertain the spirit of fear...
People who are aggressive to succeed in life...
It is a shame and a big disgrace for some regions who never had any limitations to compare themselves with the SE that have so many limitations...
IF a region is to be least develop both in infrastructures and finance,it should be the southeast...
But if they are better off than any region on any aspect, that region should be considered a total disgrace
Both in Education, finance,IGR,sports,entertainment, infrastructure, economy and other social amenities,,,That region that they are better of in any of this aspect should be considered as a total disgrace...
Other regions have come a long way..while this region just started from half way....if they compete with any region or overtake any region on any aspect..... that very region should be considered to be a national disgrace.
It is an advice....we all have to say the truth and make our leaders sit up...

I am not from the SE.......but this people really deserves an applaud, at least for their spirit of resilience and industrious life....
I always see some people online comparing themselves with the Southeasterners.,and I think it is a disgrace and a shame for someone to compare themselves with the easterners.
The southeast is a region...
++ with the smallest land mass
++A region that is not endowed with so much natural resource not even land..
++A region that fought a 3 years war and started from afresh.
++A region that do not have a seaport and no federal structure or presence.
++A region that everything you see on that land is solely indigenous
++A region that has no international airport, except the one newly built one last year at Enugu, Even the major flight there.airpeace is indigenous..
++A region without a functional rail line..
++A region left to generate their own electricity without a federal government intervention..
++A region without an international borders..etc
And they have risen up from nowhere to::::
++Grow one of the biggest market in west Africa(0nitsha)
++Grow an automobile hub in west Africa(Nnewi).....actually,some persons do not know how Nnewi started...you will appreciate the Easterners when you read the history of Nnewi
++Grow a manufacturing and fabricating hub in west Africa(Aba)
++Have rebuild their cities and far better than cities that where not destroyed during the war.
++Have taken over major industries in the nation..eg Nollywood, Football, and some giant industries across the nation.
++Have drastically reduce the level of ilitracy and poverty in the region, even comparing to other regions..
++Have raised so many industralist,intellectuals,millionaire and billionaires within a short time.
++Even with limited land, they have a brand name in agriculture (Abakaliki rice)etc
++Have improved in education even better than other region.
It only take people who are blessed and highly industrious to achieve all this with so many limitations...
People who never entertain the spirit of fear...
People who are aggressive to succeed in life...
It is a shame and a big disgrace for some regions who never had any limitations to compare themselves with the SE that have so many limitations...
IF a region is to be least develop both in infrastructures and finance,it should be the southeast...
But if they are better off than any region on any aspect, that region should be considered a total disgrace
Both in Education, finance,IGR,sports,entertainment, infrastructure, economy and other social amenities,,,That region that they are better of in any of this aspect should be considered as a total disgrace...
Other regions have come a long way..while this region just started from half way....if they compete with any region or overtake any region on any aspect..... that very region should be considered to be a national disgrace.
It is an advice....we all have to say the truth and make our leaders sit up.

I am not from the SE.......but this people really deserves an applaud, at least for their spirit of resilience and industrious life....
I always see some people online comparing themselves with the Southeasterners.,and I think it is a disgrace and a shame for someone to compare themselves with the easterners.
The southeast is a region...
++ with the smallest land mass
++A region that is not endowed with so much natural resource not even land..
++A region that fought a 3 years war and started from afresh.
++A region that do not have a seaport and no federal structure or presence.
++A region that everything you see on that land is solely indigenous
++A region that has no international airport, except the one newly built one last year at Enugu, Even the major flight there.airpeace is indigenous..
++A region without a functional rail line..
++A region left to generate their own electricity without a federal government intervention..
++A region without an international borders..etc
And they have risen up from nowhere to::::
++Grow one of the biggest market in west Africa(0nitsha)
++Grow an automobile hub in west Africa(Nnewi).....actually,some persons do not know how Nnewi started...you will appreciate the Easterners when you read the history of Nnewi
++Grow a manufacturing and fabricating hub in west Africa(Aba)
++Have rebuild their cities and far better than cities that where not destroyed during the war.
++Have taken over major industries in the nation..eg Nollywood, Football, and some giant industries across the nation.
++Have drastically reduce the level of ilitracy and poverty in the region, even comparing to other regions..
++Have raised so many industralist,intellectuals,millionaire and billionaires within a short time.
++Even with limited land, they have a brand name in agriculture (Abakaliki rice)etc
++Have improved in education even better than other region.
It only take people who are blessed and highly industrious to achieve all this with so many limitations...
People who never entertain the spirit of fear...
People who are aggressive to succeed in life...
It is a shame and a big disgrace for some regions who never had any limitations to compare themselves with the SE that have so many limitations...
IF a region is to be least develop both in infrastructures and finance,it should be the southeast...
But if they are better off than any region on any aspect, that region should be considered a total disgrace
Both in Education, finance,IGR,sports,entertainment, infrastructure, economy and other social amenities,,,That region that they are better of in any of this aspect should be considered as a total disgrace...
Other regions have come a long way..while this region just started from half way....if they compete with any region or overtake any region on any aspect..... that very region should be considered to be a national disgrace.
It is an advice....we all have to say the truth and make our leaders sit up....

4Play:
Your example refutes a straw man. Of course, a government can sustain high debt if it has the tax revenues and most, importantly, if the debt is denominated in its own currency. I have addressed this in previous posts. But in judging the financial health of a state government in Nigeria, simply looking at its IGR tells you only very little without looking at the debt stock/obligations. This is a common sense proposition. Between Anambra and Oyo & Ogun states, which required FG's assistance in arranging a bailout?

I agree that simply looking at IGR says nothing about a state's financial health: where I disagree is in assuming that looking at outstanding debt is also sufficient to pass judgement either. Having large debts doesn't mean they need be unsustainable, especially if the economy is growing. Conversely, having low debts isn't an indicator of sustainability if an economy is shrinking, and the debt service is taking up an ever greater share of the state's income.

With regards to the requirement of a bailout as an indicator of a state's economic condition, here I'll have to make reference to yet more historical economic data. I'm sure that there are sub-Saharan African states with much better borrowing records than Argentina, Mexico or Greece, yet who would say that any of these 3 countries is economically worse off than such "responsible" African nations?

All things being equal, it is better to be a responsible debtor, but are all things really equal in Nigeria? I say that the IGR differences between the various states are at least as reflective of innate economic capacity differences as they are of anything else; most Nigerian states can't borrow as much as Ogun no matter how badly they might want to, so praising them for "responsibility" is besides the point.

Anytime it's pointed out that debt sustainability is a problem in Nigeria, there are always people who cite the debt of sovereign advanced powers like the US, Japan or in your case, the British Empire. The capacity of the British Empire to issue debt (using their own currency) sustainably is different to the capacity of Benue state (or any state in Nigeria). If much of your IGR barely covers interest payments, touting the IGR as a sign of robust financial health is misleading.

I'm disappointed to see this level of argumentation from you. What's wrong with citing examples from economic history elsewhere to elucidate an argument? Is there something fundamentally different about Nigeria preventing such examples from applying? Besides, in what way was 18th century Britain so "advanced" compared to Nigeria today?

Finally, I should point out that in those days, there was no such thing as fiat currency, with the gold standard being universal in Europe, so your point about locally-denominated debt is irrelevant. Thanks to the gold standard, British inflation before the 20th century was negligible, and the British government couldn't just inflate away its debts. In addition, Britain never experienced a rate of annualized economic growth in that era comparable to even a "laggard" like Nigeria today, with per-capita growth rates creeping up from ~0.3% until 1850, and accelerating to ~1% p.a. after 1870 or so. The British vs. French example is therefore not just perfectly relevant, but even understated.

My worry is IGR growth driven primarily by the need to service debt. There seems to be a strong correlation between high IGR and high debt. With the exception of Lagos, all states with major tax revenue growth have experienced an explosion in debt, in some cases requiring FG intervention to meet basic obligations like salary payments.

And my point is that this needn't be a problem if the debt is being used for the right purposes. Taking on huge amounts of debt isn't a bad thing if it is done to foster growth, and the economy grows fast enough to shrink the debt ratio over time. The fact that high IGR correlates with high debt isn't particularly shocking either, as it is precisely those states which can grow their IGR that are best positioned to tap into credit markets. Low debt and low IGR could just as credibly be explained as being due to cautious and unimaginative administration of an economic backwater (e.g Fayose's Ekiti).

By the way, if you go back all the way to 1999 and look at the debt profile of Lagos from then till date, you'll see that it too has experienced a substantial increase in the total debt outstanding, so by your reasoning, Lagos would be flagged up as one more candidate for financial mismanagement - a position I'm doubtful anyone would buy.

A typical Nigerian state spends most of its money on recurrent expenditure of which public sector wages are the main component. If debt is increased dramatically, higher interest payments add to the problem of high recurrent expenditure.

Yes, but not all states are "typical", and the question is the extent to which the states with the fastest growing IGR comply with this template, and the states with stagnant IGR do not; this isn't something to be settled through rhetoric, but by an examination of the numbers pertaining to each individual state. In any case, is the alternative of owing ever greater amounts in terms of outstanding salaries really any healthier? All I see there is a crude form of off-balance sheet financing, as unpaid salaries and pensions are still debts which must eventually be paid.

I don't have any fundamental disagreement with you on the bloated and unsustainable nature of the payrolls of most Nigerian states. What I don't endorse is the position that rapid growth in IGR is a useful indicator of how rapidly such obligations are growing. Even if it were true that most of the IGR growth were being diverted to recurrent expenditure, states with higher IGR are still better positioned to devote large sums to capex by retrenching their bloated workforces, an option unavailable to low-IGR states with weak tax-collecting capabilities and small economies.

What is also lost in this debate is that a lot of those states with high IGR also have debt denominated in dollars, so their debt obligations (IGR is denominated in Naira) is rising faster than their IGR growth. Another reason why IGR only paints a small picture of a state's overall financial health.

To the extent that such debts are dollar-denominated, then yes, there is indeed cause for concern. But again, what are the hard numbers for each of these states? Maybe you're right, and the states with fastest IGR growth have indeed been on a dangerous dollar borrowing binge, but without hard numbers it's just an assertion on your part. I certainly haven't had any luck finding such data, so please go ahead and share what data you might have to hand.

The bottom line for me is that while you've noted real problems in how the various states are managing their financial affairs, your position that those states which are growing their IGR aren't to be lauded is one that I see no hard evidence for, and which is contradicted both by historical economic data from many other countries, and economic advice from both the IMF and World Bank today. The tax burden in Nigeria is extremely low, well below the level required for sustainable, non-oil driven economic development, and for the country's units of governance to be accountable and effective, they need to raise most of their revenues internally from their own locals - and yes, their stock of outstanding debt will indeed rise as this process takes place. States that are either unable or unwilling to raise their revenue-generating powers are not therefore to be regarded as somehow "responsible", but as being led by complacent and ineffective leaders - nothing stops a "responsible" state government from devoting all IGR increases to capital investment, after all.

omohayek:
I agree that simply looking at IGR says nothing about a state's financial health: where I disagree is in assuming that looking at outstanding debt is also sufficient to pass judgement either. Having large debts doesn't mean they need be unsustainable, especially if the economy is growing. Conversely, having low debts isn't an indicator of sustainability if an economy is shrinking, and the debt service is taking up an ever greater share of the state's income.

Yet more straw men. No, debt stock isn't sufficient to assess the health of a state's finances. My argument is that a state's finances ought to be assessed by looking at its income and debt - not either in isolation. There's no point in celebrating IGR in isolation without looking at a state's debt profile and its capacity to service its debt.

omohayek:
With regards to the requirement of a bailout as an indicator of a state's economic condition, here I'll have to make reference to yet more historical economic data. I'm sure that there are sub-Saharan African states with much better borrowing records than Argentina, Mexico or Greece, yet who would say that any of these 3 countries is economically worse off than such "responsible" African nations?

A bailout is an indicator of a state government's financial health because it illustrates the impotence of high IGR in itself in the face of unsustainable debt. If a state with high IGR requires external intervention to function, it is immaterial that its IGR is growing. The whole point of the IGR debate is to wean states off the FG: where a state cannot pay wages without FG bailout intervention, then suggesting that such a state might be in better financial health than a state which pays wages without such assistance is preposterous.

Again, the Argentina-Mexico-Greece analogy is off kilter. Comparing the finances of 2 state governments in Nigeria is not similar to comparing a sub-Saharan nation's finance to Greece. The likes of Greece have Western partners/allies prepared to funnel huge sums of money at them (no matter how testy negotiations might get). State governments in Nigeria essentially have the same lender of last resort: if State A borrows more money than it can pay without FG bailout assistance, then it is in worse financial condition than State B which is able to function without such assistance. It is immaterial that State A has higher IGR than State B if State B is able to function without FG intervention. This goes to the root of the debate: the capacity of states to function independently of the FG.

omohayek:
I'm disappointed to see this level of argumentation from you. What's wrong with citing examples from economic history elsewhere to elucidate an argument? Is there something fundamentally different about Nigeria preventing such examples from applying? Besides, in what way was 18th century Britain so "advanced" compared to Nigeria today?

The comparison is ridiculous as the faith of the credit markets - as reflected in the low yields it charged superpowers like British Empire - and the flexibility afforded the sovereign debt issuer makes putting the British Empire's borrowing ability in the same category as Ogun state, for instance, naive to put it mildly. This is not about furiously typing posts on Nairaland - if Ogun state and the British Empire are in an analogous position when accessing the credit markets, then the yield on Ogun debt will be lower than it has been. The high yields, indeed inability presently to further issue bonds, is reflective of the reality that the IGR is insufficient to dispel creditors' worries.

omohayek:
Finally, I should point out that in those days, there was no such thing as fiat currency, with the gold standard being universal in Europe, so your point about locally-denominated debt is irrelevant. Thanks to the gold standard, British inflation before the 20th century was negligible, and the British government couldn't just inflate away its debts. In addition, Britain never experienced a rate of annualized economic growth in that era comparable to even a "laggard" like Nigeria today, with per-capita growth rates creeping up from ~0.3% until 1850, and accelerating to ~1% p.a. after 1870 or so. The British vs. French example is therefore not just perfectly relevant, but even understated.

I am lost here: Britain came off the gold standards during the Napoleonic Wars to finance its participation by exploiting its position as a sovereign issuer of debt. It exploited its position as a credible sovereign, being the world's reigning superpower, to finance its debt. Comparisons, therefore, between its position and that of state governments in Nigeria are a bit naive.

As for growth rates: of course, countries at the frontiers of economic development tend to grow much more slowly than developing countries like Nigeria. That Sierra Leone or Liberia can have fast economic growth rates would not mean their capacity to borrow can be compared to the British Empire.

omohayek:
And my point is that this needn't be a problem if the debt is being used for the right purposes. Taking on huge amounts of debt isn't a bad thing if it is done to foster growth, and the economy grows fast enough to shrink the debt ratio over time. The fact that high IGR correlates with high debt isn't particularly shocking either, as it is precisely those states which can grow their IGR that are best positioned to tap into credit markets. Low debt and low IGR could just as credibly be explained as being due to cautious and unimaginative administration of an economic backwater (e.g Fayose's Ekiti).

In principle, I agree but not when it comes to "high IGR" states that cannot pay wages without FG assistance.

omohayek:
By the way, if you go back all the way to 1999 and look at the debt profile of Lagos from then till date, you'll see that it too has experienced a substantial increase in the total debt outstanding, so by your reasoning, Lagos would be flagged up as one more candidate for financial mismanagement - a position I'm doubtful anyone would buy.

Another straw man. No, if you read my posts carefully you will see I am concerned about states touting high IGR but with demonstrable inability to pay their debt. My view about such states is that their financial health is weaker than the picture painted by looking at IGR in isolation. Again, this is a fairly uncontroversial and common sense view which the emotive environment of Nairaland debates seems to be obfuscating. A state with high IGR but requiring FG assistance to meet its debt obligations is as dependent on the FG as a state with low IGR but which does not need the FG's assistance for such.

omohayek:
Yes, but not all states are "typical", and the question is the extent to which the states with the fastest growing IGR comply with this template, and the states with stagnant IGR do not; this isn't something to be settled through rhetoric, but by an examination of the numbers pertaining to each individual state. In any case, is the alternative of owing ever greater amounts in terms of outstanding salaries really any healthier? All I see there is a crude form of off-balance sheet financing, as unpaid salaries and pensions are still debts which must eventually be paid.

I am not sure there are actually states with stagnant IGRs (from a longer term perspective). Some states with low IGR are probably the fastest growing as they are starting from a low base. To your point about wages, some high IGR states have notoriously unsettled salary arrears whilst some states with low IGR don't. Unsettled wages are a form of debt, I agree. It reinforces my argument that IGR in isolation is a small part of the picture in assessing Nigerian states.

omohayek:
I don't have any fundamental disagreement with you on the bloated and unsustainable nature of the payrolls of most Nigerian states. What I don't endorse is the position that rapid growth in IGR is a useful indicator of how rapidly such obligations are growing. Even if it were true that most of the IGR growth were being diverted to recurrent expenditure, states with higher IGR are still better positioned to devote large sums to capex by retrenching their bloated workforces, an option unavailable to low-IGR states with weak tax-collecting capabilities and small economies.

This is all good in theory, but the reality is that both low and high IGR states can reduce their workforce but they cannot reduce their debt burden (without a bailout package) if unsustainable. My intervention in this thread is borne out of my concern that people are using the IGR metric in isolation when we have seen a lot of high IGR states tap the FG for assistance and left their workers unpaid.

omohayek:
To the extent that such debts are dollar-denominated, then yes, there is indeed cause for concern. But again, what are the hard numbers for each of these states? Maybe you're right, and the states with fastest IGR growth have indeed been on a dangerous dollar borrowing binge, but without hard numbers it's just an assertion on your part. I certainly haven't had any luck finding such data, so please go ahead and share what data you might have to hand.

The DMO maintains data on the debt stock. See here: https://www.dmo.gov.ng/debt-profile/sub-national-debts. Looking at the data, I suspect (indeed we know with the recent FG bailout) with the exception of Lagos, states with external debt larger than $100m have strained finances which, even in cases of high IGR, puts them in a precarious position.

omohayek:
The bottom line for me is that while you've noted real problems in how the various states are managing their financial affairs, your position that those states which are growing their IGR aren't to be lauded is one that I see no hard evidence for, and which is contradicted both by historical economic data from many other countries, and economic advice from both the IMF and World Bank today. The tax burden in Nigeria is extremely low, well below the level required for sustainable, non-oil driven economic development, and for the country's units of governance to be accountable and effective, they need to raise most of their revenues internally from their own locals - and yes, their stock of outstanding debt will indeed rise as this process takes place. States that are either unable or unwilling to raise their revenue-generating powers are not therefore to be regarded as somehow "responsible", but as being led by complacent and ineffective leaders - nothing stops a "responsible" state government from devoting all IGR increases to capital investment, after all.

You insist on using straw men. My point isn't that high IGR growth isn't commendable but that one ought to weigh both the growth in IGR and the debt stock. State budgets are somewhat like household budgets. I will not gauge a household's financial health simply by looking at their income: I will also consider their outgoings (particularly in relation to debt).

I think in the Nigerian context, looking at IGR in isolation is misleading. If a state has relatively high IGR but fails to pay its workers and taps the FG's assistance in securing a bailout, it's arguably in worse shape than a state with lower IGR but which pays its workers and does not require a bailout. This is why I cited the Anambra state example: a state I often mock for its MOU propaganda loving Governor. It has relatively low IGR but a domestic debt stock of N4bn and sizeable foreign currency reserves (the latter increases in value with Naira depreciation). To me, this puts Anambra state in a better financial health than Edo, Kaduna or Ogun state who have both substantially larger debt (domestic and external). Unlike Lagos, the difference in IGR fails to compensate for the difference in debt burdens.

So my conclusion remains the same: IGR is a small part of a bigger picture. For instance, that Bauchi has higher IGR than Bayelsa doesn't tell us much in itself. I think this is an obvious point which doesn't require much explanation.