The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the Lagos State Internally Generated Revenue (IGR) is higher than that of 33 States put together.
The total IGR from 33 states of the federation, excluding Delta, Ogun and Rivers States stood at N299 billion, over a billion less than the Lagos IGR.
In the last year 2016, the State recorded an increase of N32.99 billion in its IGR from the N301.19 billion it earned the previous year 2015. This trend the common complain that State Governments have generally suffered a shrink in earnings during a period of recession. Delta, Ogun and Rivers raked in N44.89 billion, N56.30 billion and N82.10 billion respectively.
The report reads:
“IGR is very low in most states and it is only in two states – Lagos and Ogun – that IGR is higher than FAAC allocations. The figure shows that total revenue by itself cannot fund states budgets,”
Akinwunmi Ambode, governor of Lagos State, has at various times committed himself to improved generation of IGR in the state, keeping up with the achievements of his predecessors and setting an example to other States, modeling the how a State should not be totally dependent on Federal allocations.
The NEITI also said:
“Total disbursements fell by 14.8 per cent from N6.011 trillion for the year 2015 to N5.121 trillion for the 2016. In Q1 2016, total disbursements were N1.132 trillion as against N1.648 trillion in Q1 2015, a decline of 31.2 per cent in Q1 2016,”
“Total disbursements fell by 26.9% from N1.241 trillion in Q2 2015 to N906 billion in Q2 2016. There was a further decline in Q3 when total disbursements dropped by 7.8% from N1.887 trillion in 2015 to N1.738 trillion 2016.”
“However, total disbursements increased in Q4 by 8.8 per cent from N1.233 trillion in 2015 to N1.343 trillion in 2016.”
“The federal government received a total of N2.08 trillion from the federation account in 2016, which represents a drop of 19.9% of the total N2.6 trillion received in 2015”.
“The federal government would have to resort to even higher debts to fund the budget. The implication of this is that debt service payments, which accounted for 24.3% of the 2016 budget, would increase”
The agency, according to The Cable, lamented low revenue generation across 34 states, citing Lagos and Ogun as the only states generating more than what they get from the central.
NEITI said the three tiers of government shared N5.121 trillion through 2016, a decline from 2015 figures. The 2016 budget was for N6.06 trillion, implying that at N2.08 trillion, total FAAC disbursements were only 34.3 per cent of the budget.