States’ IGRs Shrink By 22% In Two Years

The aggregate internally generated revenue of the 36 states in the country and the Federal Capital Territory Administration fell by 37 billion in two years.

This is according to data obtained from the National Bureau of Statistics.

As of the end of 2018, states’ IGR stood at N1.68 trillion, while by the end of 2020, the total IGR fell to N1.31trillion.

This means that the total IGR of states declined by 22.02 percent within the review period.

Also, findings showed that during the period under review, the IGR of the states and the FCT came primarily from Ministries, Agencies and Departments and tax.

In 2018, MDAs contributed N265.7bn to the total IGR for that year, while revenue generated from tax stood at N909.5bn.

A breakdown of the revenue generated from tax shows that Pay As You Earn, which is a form of personal income tax, stood at N669.2bn at the end of the stated year, the direct assessment was N44.26bn, road taxes; N23.95bn and other taxes such as ‘levies on market traders, land registration and other land-related fees’ contributed the sum of N165.7bn.

Similarly, in 2020, a larger part of the IGR was generated from tax; PAYE, N851.7bn, direct assessment, N37bn, road taxes, N28.3bn and other taxes, N176.4bn totaling N1.08tn, while N218.3 was generated from MDAs.

Further analysis shows that in 2018, the top revenue generating states were Lagos with N382.1bn, Rivers with N112.7bn, Ogun with N84.5bn, FCT with N65.5bn and Delta with N58.4bn.

In 2020, Lagos again led with N418.9bn, thus recording a 32.08 per cent increase in IGR, followed by Rivers with N117.2bn (8.97 percent rise), FCT with N92.0bn (7.05 percent rise), Delta with N59.7bn (4.57 percent rise) and Kaduna with N50.7bn (3.89 per cent rise).

However, it was also observed that the revenues of Ebonyi, Kaduna and Zamfara States grew by more than 70 percent, within the period under examination.

Between December 31 2018 and December 31, 2020, Ebonyi recorded a 121.3 percent increase in revenue generation from N6.14bn to 13.6bn; Kaduna’s revenue rose from N29,4bn to N50.8bn, representing a 72.4 percent while Zamfara’s total IGR jumped from N8.2bn to N18.51bn, indicating an increase of 125.4 percent.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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