Cash crunch: States look to IGR for N1.1tn 

Owing to the cash crunch on states in the federation, arising from dwindling revenues from oil receipts, the states are looking inwards to generate the needed revenues to stay afloat.

To this end, state governors have started making aggressive efforts to shore up their Internally Generated Revenue (IGR) for 2016, as way of raising more funds to support their needs.

Emerging reports says about 22 states in the federation are aiming at earning at least N1.1 trillion from IGR in the year 2016, by widening their tax nets, blocking avenues for revenue leakage, investing in agriculture and solid minerals among others.

The 36 states of the country generated a total of N682.7 billion IGR in 2015, a decline of N25.18 billion from the N707.9 billion they generated in 2014.

Read also: Lafarge Africa suffers N28b forex loss as profit declines

Lagos State, which generated the highest revenue in the 2015 with an IGR of N268 billion, has projected to earn N300 billion from IGR in the 2016 fiscal year.

Rivers state is second on the list of states with the highest IGR projections for the fiscal year, with a target of N120 billion, while Ogun has a projection of N108 billion.

In spite of bailouts from the federal government, a good number of states have been unable to meet their financial obligations, especially in the area of paying workers’ salaries, with some owing as much as eight months arrears.

 

 

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