17 Nigeria States economy sick – Analyst

17 Nigeria States economy sick  – Analyst

The Economic Confidential has raised the red flag, predicting that 17 States in Nigeriaafe insolvent. The Annual States Viability Index (ASVI) for 2018, released at the Weekend, said the Internally Generated Revenues (IGR) of the States in 2018 were far below 10 per cent of their receipts from the Federation Account Allocations (FAA) in the

The Economic Confidential has raised the red flag, predicting that 17 States in Nigeriaafe insolvent.

The Annual States Viability Index (ASVI) for 2018, released at the Weekend, said the Internally Generated Revenues (IGR) of the States in 2018 were far below 10 per cent of their receipts from the Federation Account Allocations (FAA) in the same year. 

The index computed by the report revealed that without the monthly disbursement from Federal Accounts Allocation Commission, many of the states remained unviable and cannot survive without the federally distributed handouts largely from the oil sector. 

The IGRs are generated by states through Pay-As-You-Earn Tax (PAYE), direct assessment, road taxes and revenues from Ministries, Departments and Agencies (MDAs). 

The IGR of the 36 states of the federation totalled N1.1 trillion in 2018 as compared to N931 billion in 2017, an increase of N172 billion. The report by the economic intelligence magazine further indicated that the IGR of Lagos State at N382 billion was higher than that of 30 States put together whose IGRs are extremely low and poor compared to their allocations from the Federation Account. 

Meanwhile, the Federal Capital Territory (FCT), Abuja, which is not a state but the nation’s capital, generated N65 billion IGR against N29 billion from the Federation Account in the same period.

Lagos State remained steadfast in its number one position in IGR generation with a total revenue of N382 billion compared to FAA of N260 billion, which translates to 146 per cent in the 12 months of 2018.

It was followed by Ogun State, which generated IGR of N84.55 billion compared to FAA of N93 billion representing 90 per cent; Rivers with N112 billion compared to FAA of N237 billion representing 47 per cent and Kwara State with a low receipt from the Federation Account has maintained its impressive IGR by generating N23 billion compared to FAA of N81 billion representing 28 per cent.

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