14 States Can't Survive Without Federal Allocation - Report

A report released by a magazine, Economic Confidential ,has showed that Bauchi, Benue, Ekiti, are among the 14 states that cannot survive without the federally collected revenue which is mostly derived from the oil sector.

According to the report from the magazine, showing the  total allocations received by each state in Nigeria from the Federation Account Allocation (FAA) between January to December 2017, it was gathered that the internally generated revenue from the states were below 10 percent of what they received from the federal allocation in 2017.

The statistical aggregate released showed that most states will find it very difficult to survive without the monthly funds from the Federal Account Allocation Committee. It was also gathered from the report that states with less than 10 per cent IGR which was 14 in 2016 have increased to 17 states in 2017.
Pointing out the states that may not survive without federal allocation due to poor internal revenue, the report listed Bauchi which realized a meagre N4.3 billion compared to a total of N85 billion it received from the Federation Account Allocation (FAA) in 2017 representing about 5 per cent of the funds the state received from the Federal government that same year.
Yobe was also listed as it generated N3.59 billion compared to FAA of N67 billion representing 5.33 per cent of funds received from the Federal Allocation.
Also listed was Borno state which generated about N4.9 billion compared to FAA of N92 billion it received which is equivalent to   5.41 per cent of the funds it received from the FAA.

Also listed as an unviable was   Kebbi with IGR of N4.39 billion compared to the N76 billion it received from the FAA  representing 5.77 per cent of the funds it received from the federal account and Katsina with IGR of N6 billion compared to N103 billion of FAA representing 5.8 per cent.‎

Other poor internal revenue earners are Niger which generated N6.5 billion compared to FAA of N87 billion representing 7.43 per cent; Jigawa N6.6 billion compared to FAA of N85 billion representing 7.75 per cent; Imo N6.8 billion compared to FAA of N85 billion representing 8.1 per cent and Akwa Ibom N15 billion compared to FAA of N197 billion representing 8.06 per cent, Ekiti N4.9 billion compared to FAA of N59 billion representing 8.38 per cent; Osun N6.4 billion compared to FAA of N76 billion representing 8.45 per cent, Adamawa N6.2 billion compared to FAA of N72.9 billion representing 8.49 per cent; Taraba N5.7 billion compared to FAA of N66 billion representing 8.70 per cent and Ebonyi N5.1 billion compared to FAA of N57.8 billion representing 8 per cent.

The report also listed states with Impressive IGR for the year 2017 which included Kwara, Kano,Kaduna , Ogun, Rivers, Edo, Enugu, Delta, Cross River, Anambra, Oyo and Abia States and Lagos state.

However the state in the south with the poorest internally generated revenue in 2017 includes Bayelsa, Ebonyi, Osun, Ekiti, Akwa-Ibom and Imo States generating a total of N934 billion in 2017.

The report however recorded that only 3 states in the north had an impressive IGR for the year 2017.

Pointing Lagos as the state with the highest IGR, the state remains steadfast in its number one position in IGR with a total revenue generation of N333 billion compared to FAA of N201 billion which translate to 165 per cent in the twelve months of 2017.
It is followed by Ogun State which generated IGR of N74.83 billion compared to FAA of N69 billion representing 107 per cent. Others with impressive IGR include Rivers with N89 billion compared to FAA of N178 billion representing 50 per cent; Edo with IGR of N25billion compared to FAA of N75 billion representing 33 per cent.
Kwara State however with a low receipt from the Federation Account has greatly improved in its IGR of N19 billion compared to FAA of N61 billion representing 32 per cent while Enugu with IGR of N22 billion compared to FAA of N69 billion representing 32 per cent.
Kano generated N42 billion compared to FAA of N143 billion representing 30 per cent while Delta State earned N51 billion IGR against FAA of N175 billion representing 29 per cent.

The report also noted that the N333 billion generated by Lagos state was higher that the IGR of 30 states  put together whose internal revenues are extremely low and poor compared to their allocations from the Federation Account.

However, states are advised to improve their IGR by diversifying their economy to productive sectors and stop relying solely on the monthly federation accounts revenue that has a major part of it coming from the oil sector.