Between 2019 and 2022, the 36 states and the Federal Capital Territory recorded a total of N7.02 trillion as internally generated revenue, data from the National Bureau of Statistics (NBS) have shown.
According to NBS, in 2019 the States’ IGR stood at N1.64 trillion with a 64.65 per cent share of tax revenue but this declined by 4.65 per cent to N1.56 trillion reported in 2020. The drop might not be unconnected to the global COVID-19 pandemic that suspended the global economy, pushing several countries’ economies, including Nigeria, into recession. However, the proportion of tax revenue in 2020 rose to 66.16 per cent.
Meanwhile, the revenue picked up to N1.895 trillion in 2021 indicating a growth rate of 21.54% over 2020 revenue collections and a 1.57 per cent increase to N1.93 trillion in 2022.
Within the four years, RippleMetrics findings showed that the 36 states and FCT generated N4.79 trillion as total revenue from taxes, while N2.23 trillion was pulled from the states’ Ministry, Department and Agencies revenue.
State Profile Analysis
RipplesMetrics further findings showed that only Lagos, Rivers, FCT and Ogun have maintained the top four IGR in the last four years.
The data bureau reported that Lagos State recorded the highest Internally Generated Revenue in 2019 with N646.61 billion. It was followed by Rivers State with N169.60 billion and Ogun State with N81.42 billion. The three states polled 54.87 per cent of the total IGR recorded in the year under review.
Also, in 2020, Lagos State’s revenue stood top with N659.99 billion and it was followed by Rivers State with N117.19 billion and FCT with N92.06 billion. The three states polled 55.73 per cent of the total revenue in 2020.
Furthermore, Lagos, FCT and Rivers recorded the highest collections in 2021 with N753.46 billion, N131.92 billion and N123.35 billion respectively. The three states polled 53.21 per cent of the total IGR generated in the year.
In 2022, Lagos State, Rivers State, and FCT recorded the highest IGR with N651.15 billion, N172. 82 billion and N124.37 billion respectively pulling 49.25 per cent of the total revenue generated.
However, Imo and Taraba generated the lowest revenue with N6.18 trillion and N6.53 trillion respectively in 2019. Yobe and Imo states reported the lowest IGR in 2020 with N6.81 trillion and N7.67 trillion in respectively.
In 2021, the states with the lowest IGR were Yobe with N8.46 trillion and Taraba with N9.63 trillion while in 2022, the least three performing states during the year were Kebbi, Taraba and Yobe with a value of N9.15 billion, N10.24 billion, and N10.46 billion respectively.
Meanwhile, in the recently released State of States report by BudgIT, Abia, Imo, Yobe, Zamfara and Plateau States borrowed to sustain their recurrent and capital expenditures.
The report reveals that the combined Internally Generated Revenue, federation allocation and other fund sources in Abia, Imo, Yobe, Zamfara and Plateau cannot sustain their recurrent expenditure.
“Five states—Abia, Imo, Yobe, Zamfara, and Plateau—did not raise enough total revenue (their combined IGR, federal allocations, and grants) to cater to their recurrent expenditure. It means these states resorted to borrowing to manage some parts of their recurrent expenditure and capital expenditure”, the report stated.
The situation is more problematic for Abia and Imo, which consistently receive 13 per cent oil derivatives.
By James Odunayo
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