Adoga Michael Oyi
Lagos generated more IGR than 30 states combined
The Economic Confidential has released its Annual States Viability Index (ASVI) which shows that 17 states are insolvent as their internally generated revenues (IGR) in 2017 were far below 10 per cent of their receipts from the Federation Account Allocations (FAA) in the same year.
The index carefully and painstakingly computed proved that without the monthly disbursement from the Federation Account Allocation Committee (FAAC), many states remain unviable, and cannot survive without the federally collected revenue, mostly from the oil sector.
The IGR is generated by states through Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDAs).
The report by this economic intelligence magazine further indicates that the IGR of Lagos State of N333billion is higher than that of 30 states put together whose Internally Generated Revues are extremely low and poor compared to their allocations from the Federation Account.
The states with impressive over 30 per cent IGR apart from Lagos are Ogun, Rivers, Edo, Kwara, Enugu and Kano States who generated N607billion in total, while the remaining states merely generated a total of N327billion in 2017.
Recently, the magazine published the total allocations received by each state in Nigeria from the Federation Account Allocation (FAA) between January to December 2017. The latest report on IGR reveals that only Lagos and Ogun States generated more revenue than their allocations from the Federation Account by 165 per cent and 107 per cent respectively and no any other state has up to 100 per cent of IGR to the federal largesse.
The IGR of the 36 states of the federation totalled N931billion in 2017 as compared to N801.95 billion in 2016, an increase of N130 billion.
While the report provides shocking discoveries the states with less than 10 per cent IGR have jumped to 17 from 14 states in the previous year 2016.
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