Why 15 States may go bankrupt - Report

dimeji akinloye

June 26, 2016 8:05 PM

According to the report, the IGR of Lagos State of N268 billion is higher than that of 32 States combined.

Fifteen Nigerian states may go bankrupt due to their poor Internally Generated Revenues (IGR) in 2015, which were as low as 10% of their Federation Account Allocations (FAA) in one year from June 2015 to May 2016, an investigation by the

According to the report, 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, it said.

In its latest report on IGRs, Economic Confidential, an economic intelligence magazine, revealed the total allocation each state in Nigeria received from the Federation Account Allocation (FAA) between June 2015 to May 2016 which signified one year of the President Muhammadu Buhari adminsitration.

As revealed in the report, only Lagos State generated more revenue than its allocation from the Federation Account by 150% and no other state has upto 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 percent.

The report indicated that 15 states may not stay survive outside the Federal Account Allocation due to lack of creativity and foresight in revenue generation drive.

The potentially bankrupt states include Yobe which generated N2.2 billion compared to a total of N57.4 billion it received from the Federation Account Allocation (FAA) from June 2015 to May 2016 representing about 3.9%.

Other states 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 N50.460 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.

Also on the list 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 N5bn compared to FAA of N73 billion representing 7%; Bauchi N5.3bn 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 N5.7bn compared to FAA of N88.8bn 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 N69.7 billion representing 8.9%.

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Lagos State however leads the pack in IGR with a total revenue generation of N268.22 billion in the year under review; followed by Rivers State N82.10billion, Delta State N40.80 billion, Ogun State N34.59 billion and Edo state with N19.11 billion.

The following five states are also on top of the current economic challenges - Enugu, Oyo, Anambra, Akwa Ibom and Kano with N18.08bn, N15.66bn, N14.793bn, N14.791bn, and N13.611 bn respectively.

dimeji akinloye