Lagos is Nigeria’s richest state as 15 others set to go bankrupt

– Fifteen states in Nigeria may go bankrupt as their Internally Generated Revenues (IGR) are far below 10% of their Federation Account Allocations

– The IGR of Lagos state is higher than that of 32 states combined together

– The rich states include Lagos, Rivers, Delta, Ogun and Edo

– While the poor states are Yobe, Zamfara, Ekiti, Borno and Kebbi

Total allocation each state in Nigeria received from the Federation Account Allocation (FAA)

Report says that 15 states in Nigeria may go bankrupt as their IGR in 2015 were far below 10% of their Federation Account Allocations (FAA) in one year from June 2015 to May 2016.

An investigation by the Economic Confidential,  further indicates that the IGR of Lagos state of N268 billion is higher than that of 32 states combined together excluding Rivers, Delta and Ogun whose IGRs are very impressive. The 32 other states merely generated a total of N257 billion in 2015.

The economic intelligence magazine published the total allocation each state in Nigeria received from the FAA between June 2015 to May 2016 which signified one year of President Muhammadu Buhari’s administration.

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The latest report on IGR reveals that only Lagos state generated more revenue than its allocation from the Federation Account by 150% and no any other state has up to 100% of IGR to the federal largese.

The IGR of the 36 states of the federation totalled N682.67 billion in 2015, as compared to N707.85 billion in 2014, a drop of N25.18 billion, or a minus 3.56%.

The report provides shocking discovery that indicates that 15 states may go bankrupt and may not stay afloat outside the Federal Account Allocation due to lack of foresight in revenue generation drive coupled with arm-chair governance.

The states that may not survive without the Federation Account due to poor internal revenues include Yobe which generated meagre N2.2 billion compared to a total of N57.4 billion it received from the FAA representing about 3.9%.

Others are: Zamfara with IGR of N2.7 billion compared to FAA of N56.6 billion, representing 4.8%; Ekiti N3.2 billion compared to FAA of N50.46 billion representing 6.5%; Borno with N3.5 billion compared to N78.7 billion of FAA representing 4.5% and Kebbi with IGR of N3.5 billion compared to N64.8 billion of FAA representing 5.5% within the period under review.

Others poor internal revenue earners are Taraba which generated N4.1 billion compared to FAA of N56 billion, representing 6.4%; Nassarawa N4.4 billion compared to FAA of N50.5 billion, representing 8.5%; Adamawa N4.4 billion compared to FAA of N62.2 billion, representing 7.1%; Gombe N4.7 billion, compared to FAA of N49.8 billion, representing 9.6%; Jigawa N5 billion compared to FAA of N73 billion, representing 7%; Bauchi N5.3 billion compared to FAA of N72.6 billion, representing 7.4%; Imo N5.4 billion compared to FAA of N71.6 billion, representing 7.6%; Katsina N5.7 billion compared to FAA of N88.8 billion, representing 6.5 %; Niger N5.9 billion compared to FAA of N74.8 billion, representing 8% and Sokoto N6.2 billion compared to FAA of N69.7billion, representing 8.9%.

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Last year, the state governments received  N713.7 billion bailout from the FG to pay workers backlog of salaries, but they are still grappling with the same challenges due to Nigeria’s dwindling oil revenues.

The federal government has now decided to give out another N90 billion loan, which the government believes will help the states in their bid to be less dependent on the monthly handout from the federation account.

The loan will be given over one year and will be extended to the states after they have met 22 conditions.

The post Lagos is Nigeria’s richest state as 15 others set to go bankrupt appeared first on Nigeria News today & Breaking news | Nigerian newspapers.

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