States Generate N1.8 Trillion IGR Amidst N5.72 Trillion FAAC Allocation
Bayelsa, Kebbi., Katsina, Akwa-Ibom, Taraba and Yobe States are insolvent and may not be able to survive without the monthly revenue allocation from the Federation Account Allocations Committee (FAAC).
A new report shows that the six states failed to generate up to 10 per cent of the cumulative revenue they received from the federation account in 2022 due to their extremely poor internal revenue generation of less than 10 per cent compared to their federal allocations.
Bayelsa, Katsina and Akwa Ibom States are the home states of former Presidents Goodluck Jonathan, Muhammadu Buhari and the current Senate President Godswill Akpabio respectively.
The seventh Annual States Viability Index (ASVI) report that was released by Economic Confidential yesterday, showed that without the monthly disbursement from the FAAC account, many states remain unviable, and cannot survive without the federally collected revenue, mostly from the oil sector.
The IGR are generated by states through Pay-As-You-Earn Tax (PAYE), direct assessment, road taxes and revenues from ministries, departments and agencies (MDAs).
The report also showed that the IGR of the 36 states of the federation amounted to N1.8 trillion in 2022 above N1.76trn they raked in from IGR in 2021. The report by the Economic Confidential, an intelligence magazine further indicates that the IGR of Lagos State of N651bn is higher than that of 30 other States put together whose Internally Generated Revenues are extremely low, and poor compared to their allocations from the Federation Account.
Lagos remained steadfast in its number one position in IGR among the states with a total revenue generation of N651bn compared to FAA of N370bn which translates to 176 percent in the twelve months of 2022. Ogun State generated an IGR of N120bn compared to its FAA of N113bn representing 106 per cent, followed by Rivers which generated N172bn IGR compared to the FAA of N363bn representing 48 per cent.
Kaduna State with N58 billion compared to FAA of N155bn representing 37 per cent; Kwara with IGR of N35 billion compared to FAAC of N99bn representing 36 per cent and Oyo generated N62 billion compared to FAA of N181bn representing 34 per cent and Edo generated N47bn IGR compared to N147bn FAA representing 32 per cent.
The total internally generated revenues of N1.15tr from the seven most viable states in 2022 was almost twice the total IGR of 29 remaining states put together merely generating about N650bn.
Others with impressive IGRs include Anambra with an IGR of N33bn compared to FAAC of N127bn representing 27 per cent; Enugu with an IGR of N28bn compared to FAA of N111bn representing 26 per cent; Ondo with an IGR of N32bn compared to FAAC of N135 billion representing 24 per cent while Nasarawa State earned N19 billion IGR against FAAC of N92 billion representing 21 per cent. And Delta generated N85 billion IGR against its receipt of N428 billion from FAAC representing 20 per cent. Osun with IGR of 24bn compared to its FAA of N122 billion representing 20 per cent.
The six states with impressive IGR generated N225bn in total, while the remaining 23 states generated a total of N426bn in 2022.
