*Higher than 33 states’ IGR put together
Lagos State’s internally generated revenue rose by approximately N33 billion from 2015 to 2016, beating 33 states put together.
A report by the Nigeria Extractive Industries Transparency Initiative revealed that the state recorded an IGR of N301.19 billion in one year, with an increase of N32.99 billion.
Apart from Delta, Rivers and Ogun states, the cumulative IGR of other 33 states of the federation was put at N299 billion, over a billion less than Lagos’ IGR.
Delta, Ogun and Rivers raked in N44.89 billion, N56.30 billion and N82.10 billion respectively.
The NEITI report, while also reviewing disbursements from the Federation Account Allocation Committee for the fourth quarter of 2016, revealed that Lagos State received N109 billion in 2016.
NEITI lamented low revenue generation across 34 states, and said that only Lagos and Ogun states generated more than they get from the federation account.
NEITI said in the report, “IGR is very low in most states and it is only in two states – Lagos and Ogun – that their IGR is higher than FAAC allocations. The figure shows that total revenue by itself cannot fund states budgets.”
It also revealed that the three tiers of government shared N5.121 trillion in 2016, a decline from 2015 figures.
It 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 per cent from N1.241 trillion in Q2 of 2015 to N906 billion in Q2 of 2016. There was a further decline in Q3 when total disbursements dropped by 7.8 per cent from N1.887 trillion in 2015 to N1.738 trillion in 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 report also showed that “the Federal Government received a total of N2.08 trillion from the federation account in 2016, representing a drop of 19.9 per cent of the total N2.6 trillion it received in 2015.”
2016 budget was N6.06 trillion, meaning that the Federal Government only 34.3 per cent of the budget from FAAC disbursements.
“Thus, 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 per cent of the 2016 budget, would increase,” NEITI said.
