States in Nigeria generated the total sum of N986.2 billion Internally Generated Revenue (IGR) between January and September 2019. The latest IGR data released by the National Bureau of Statistics (NBS) disclosed.
According to the data, the total IGR generated by the states rose to N986.2 billion between January and September 2019, from N844.3 billion generated in the corresponding period of 2018. This means IGR for states rose by 16.8%.
Lagos, Rivers dwarf other states in revenue generation
During the period under review, Lagos State and Rivers recorded the biggest IGR across all the states. Nigeria’s commercial hub Lagos State generated 297.09 billion, representing 30% of IGR generated by all the states in the country.
- Similarly, Rivers State generated the total sum of N107.02 billion IGR, representing 11% of total IGR.
- The Federal Capital Territory (FCT) ranks third with a total of N55.7 billion during the period under review.
- Other states that make up the top 10 states with the biggest IGR include Ogun (N52.8 billion), Delta (N49.5 billion), Kaduna (N28.14 billion), Akwa Ibom (N26.6 billion), Kano (N25.8 billion), Ondo (N24.5 billion) and Kwara (N24 billion).
- Meanwhile, Taraba, Gombe and Yobe states recorded the lowest IGRs of N4.72 billion, N4.24 billion and N3.34 billion.
Zamfara, Ekiti, Osun, others record biggest growth in IGR
While Lagos, Rivers and other states recorded the biggest IGR during the period under review, Zamfara, Ekiti and Osun recorded biggest growth in IGR in 2019.
- According to the NBS data, Zamfara generated N4.45 billion IGR between January and September 2018, while the state’s IGR rose to N10.59 billion in the same period in 2019. This implies that Zamfara recorded a 138% increase in its total IGR during the period under review.
- Also, Ekiti, Osun and Kebbi States rank second, third and fourth respectively with the biggest growth in IGR. Ekiti recorded N8.03 billion IGR in 2019 (9-month) from N3.97 billion in 2018, a 109% rise in IGR.
- On the other hand, Osun State IGR rose from N7.5 billion in 2018 to N14.15 billion between in 2019, representing 88% in its IGR increase.
- Kebbi generated N5.93 billion in 2019, compared to N3.17 billion recorded in the corresponding period of 2018.
Crunch revenue challenge for states
Revenue generation across states in Nigeria continues to remain a critical concern to most states; hence, the rise in IGR recorded in some of these states is a welcome development, as this is expected to ease off pressures from the fiscal constraint currently witnessed in the economy.
It was reported that revenue crisis that states witnessed in 2019 took its toll on the federal allocation, as the allocated fund to states for the period under review dropped by N49.56 billion. Specifically, State governors in Nigeria shared the sum of N2.53 trillion gross allocation in 2019.
Meanwhile, gross allocation to all states in Nigeria is subjected to a number of deductions. The deductions from monthly allocation to states include external debt payment, bail-out fund, National water rehabilitation projects, National Agricultural Technology Programme, payment for fertilizer, state water supply project, State Agricultural Project and National Fadama Project.
While revenue improved slightly, most states have yet to implement the new N30,000 minimum wage. Organized labour unions have continued to intensify their tussles with several state governors who are yet to implement the new minimum wage.
Despite the slight rise in revenue, several states may further face financial constraints, as their Internally Generated Revenue and monthly allocations cannot meet their huge financial obligations.