A report released by Economic Confidential, an Intelligence Magazine, has named Lagos, Ogun, Rivers, Kaduna, Kwara, Oyo and Edo States as the most viable states in Nigeria for 2022.
The organisation in its seventh Annual States Viability Index ( ASVI) disclosed that six states to include; Bayelsa, Kebbi, Katsina, Akwa-Ibom, Taraba and Yobe States are insolvent as their Internally Generated Revenues (IGR) in 2022 were below 10 percent of their receipts from the Federation Account Allocations (FAA) in the same year.
The Managing Editor, Economic Confidential, Abdulrahman Abdulraheem, who disclosed this on Monday in Abuja said, the IGR of the 36 states of the federation totaled N1.8 trillion in 2022 was above that of 2021 which was N1.76tr.
Abdulraheem stated that the report was compiled from figures released by the Nigerian Bureau of Statistics, and the Federal Account Allocation Committee.
He said 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 translated to 176 percent in the twelve months of 2022.
According to him, 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.
However, he said Ogun State which generated IGR of N120bn compared to its FAA of N113bn representing 106%, followed by Rivers with generated N172bn IGR compared to FAA of N363bn representing 48%; Kaduna State with N58bn compared to FAA of N155bn representing 37%; Kwara with IGR of N35bn compared to FAA of N99bn representing 36% and Oyo generated N62bn compared to FAA of N181bn representing 34% and Edo generated N47bn IGR compared to N147bn FAA representing 32%.
“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 that merely generated about N650bn.
“Others with impressive IGR include Anambra with IGR of N33bn compared to FAA of N127bn representing 27%; Enugu with IGR of N28bn compared to FAA of N111bn representing 26%; Ondo with IGR of N32bn compared to FAA of N135bn representing 24% while Nasarawa State earned N19bn IGR against FAA of N92bn representing 21%.
He further said Delta State generated N85bn IGR against its receipt of N428bn from FAA representing 20%. And Osun with IGR of 24bn compared to its FAA of N122bn representing 20%.
“The six states with impressive IGR generated N225bn in total, while the remaining 23 states generated a total of N426bn in 2022. The report provides an amazing discovery. While some states have improved their IGR compared to previous years, others performed poorly. In 2022, six states generated less than 10% IGR compared to two states in 2021”.
Abdulraheem added that Adamawa narrowly escaped as it generated N13.1bn compared to FAA of N116 representing 11.29% in 2022 which was less than 2% over its 13% last year.
He said the six states that may not survive without the Federation Account due to their extremely poor internal revenue generation of less than 10% compared to their federal allocations are Bayelsa, Katsina and Akwa Ibom.
Others, he said are Taraba, Yobe and Kebbi states.
“The Economic Confidential ASVI further showed that only three states in the entire Northern region have IGR above 20% in comparison to their respective allocations from the Federation Account.
“They are Kaduna, Kwara and Nasarawa States in that order. Meanwhile, eight states in the South recorded over 20% IGR in 2022”.
Credit: thenationonlineng.net
