Economic Confidential, a PR Nigeria subsidiary, unveiled the 2022 Annual States Viability Index Report, naming Lagos, Ogun, Rivers, Kaduna, Kwara, Oyo, and Edo as Nigeria’s most financially robust states.
The Assistant Editor, Zekeri Idakwo, presented the findings during a press briefing in Abuja.
Idakwo revealed that the report, based on data from the Nigerian Bureau of Statistics and the Federal Account Allocation Committee, showcased the total Internally Generated Revenue (IGR) of the 36 states reaching N1.8 trillion in 2022, surpassing the previous year’s N1.76 trillion.
Of note, Lagos State’s staggering IGR of N651 billion overshadowed the combined IGR of 30 other states, emphasizing disparities among states in revenue generation. The seven most viable states collectively amassed an IGR of N1.5 trillion, nearly doubling the total IGR of the remaining 29 states, which hovered around N650 billion.
A breakdown illustrated the discrepancy between federal allocations and IGR: Lagos, with an FAAC allocation of N370 billion, generated N651 billion; Ogun received N113 billion and generated N120.5 billion; Rivers received N363.4 billion and generated N172 billion; Kaduna received N155 billion but generated N58 billion; Kwara received N99 billion and generated N35.7 billion; Oyo received N181 billion and generated N62 billion, while Edo received N147 billion and generated N47.4 billion.
However, the report highlighted six financially unstable states, including Bayelsa, Akwa Ibom, and Katsina, unable to generate up to 10% of their federal allocations. Termed “insolvent states,” they heavily rely on federal allocations for survival due to feeble internal revenue generation.
Bayelsa, at the bottom, received N273 billion but generated only N15.9 billion (5.81%); Kebbi received N119 billion and generated N9 billion (7.67%); Katsina received N165 billion and generated N13 billion (7.90%); Akwa Ibom received N360 billion and generated N34.8 billion (9.66%); Taraba received N103 billion and generated N10.2 billion (9.91%); while Yobe received N105 billion and generated N10.4 billion (9.91%).
Idakwo stated the urgency for states to diversify their economies beyond oil-dependent revenues.
He added that the states may not be able to stay afloat outside the monthly allocations, noting that some of the states were unable to attract investments due to socio-political and economic crises including insurgency, kidnapping, armed banditry and herdsmen-farmers clashes.