The National Bureau of Statistics (NBS) recently published the report for Internally Generated Revenue (IGR) at State levels for 2017. Compared to N831.2bn recorded in 2016, IGR figures grew by 12.0% to N931.23bn in 2017. Attribution across states showed that all but 5 states (Akwa Ibom, Anambra, Bauchi, Osun, and Taraba) recorded increases at the end of the 2017 Fiscal Year. Meanwhile, Lagos retained the number one spot, up 10.4%y/y to N334.0bn, 3.7x of Rivers (N89.5bn), the 2nd largest state by IGR.
Further analysis shows that FAAC inflows accounts for up to 70% of the total revenue (FAAC+ IGR) for most states. Additionally, the aggregate debt-to revenue ratio for all the 36 states stood at 1.8x with Osun state (10.2x) and Anambra state (0.3x) having the highest and lowest respectively.
In summary, the need to expand the revenue base across states is apparent. This will reduce dependence on FAAC inflows, regulate vulnerabilities to the oil market volatility and limit future fiscal crisis. In addition, this would boost the credit ratings of states and enhance their ability to finance developmental projects.
United Capital Nigeria