Zamfara, Lagos Lead List of Nigerian States With Highest Internally Generated Revenue Growth in Six Years
- Zamfara and Lagos states have recorded the highest IGR growth in Nigeria over the last six years
- The IGR growth is based on the value and percentage increase in revenue generated by the states
- Internally Generated Revenue indicates an improvement in the economic outlook of states and less dependence on federal allocation
Data from the National Bureau of Statistics indicate that Nigeria's 36 states have experienced an increase in Internally Generated Revenue (IGR) from N682.67 billion annually to N1.76 trillion over six years (2015 to 2021).
However, upon closer examination, the data reveals varying growth rates among the states.
Source: UGC
Internally Generated Revenue (IGR) is the revenue generated by a government from its internal sources, as opposed to external sources such as foreign aid or loans.
This is a crucial economic metric used to assess a governor's performance in their state and gauge the state's dependence on the federation's payout.
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Furthermore, states with a high IGR are generally seen as more economically viable and attractive to investors.
The states generate internal revenue from taxes, fees, and other sources.
How did the states perform
From 2015 to 2021, the combined IGR growth rate of the 36 states stood at 158.37% or N1.8trn.
Checks by Legit.ng show that only 18 states, out of the 36, could beat the national IGR growth rate of 158.37%.
The states with the highest IGR growth rate are:
- Zamfara (592.39%)
- Borno (431.41%)
- Borno: (431.23%)
- Nasarawa (382.07%)
- Kaduna (358.31%)
- Ekiti (313.60%)
- Sokoto (281.09%)
- Yobe (275.16%)
- Kwara (276.20%)
- Kogi (245.94%)
- Plateau (209.45%)
- Jigawa (224.13%)
- Oyo (232.22%)
- Bauchi (232.25%)
- Kano (196.58%)
- Ogun (191.38%)
- Kebbi (174.91%)
- Niger (171.26%)
States with the highest IGR growth rate by value
Regarding revenue growth rate by value, Lagos State is leading the pack due to its more robust economy than other states.
Analysis reveals that from 2015 to the most recent figures in 2021, Lagos State increased its revenue from N268.22 billion to N753.46 billion, translating to a N485.23 billion growth difference.
Here are the top states with the highest IGR growth rate by value
- Lagos - N485.23 billion
- Rivers - N123.35 billion
- Delta - N80.20 billion
- Ogun - N66.1 billion
- Kaduna - N52.86 billion
- Oyo - N52.09 billion
- Kano - N40.40 billion
- Akwa Ibom - N31.40 billion
- Edo - N23.30 billion
- Cross River - N22.91 billion
Experts speaks
Public finance experts have advised state governors to prioritise their state's IGR instead of relying solely on the monthly allocation from the Federal Government.
Ayo Teriba, CEO of Economic Associates, believes that every state in Nigeria has the potential to be self-sufficient, but it requires effective leadership to identify and implement wealth-generating strategies.
However, Teriba noted that most states need to do more to attract investments, as none of the 36 states has a dedicated portal for investors.
Also, Awa Ibraheem, CEO of ICMA Professional Services, suggests that the government should leverage emerging technologies to enhance its IGR.
Ibraheem believes that if utilised properly, these technologies can reduce corruption and increase revenue for the government.
Each Nigerian owes China N8,430 as foreign debt rises to over $41bn
Meanwhile, in another report, the Debt Management Office (DMO) website has revealed Nigeria's foreign debt has increased to $41 billion
For countries, DMO data shows Nigeria has $4.46bn debt to China and four other countries
As expected, Nigeria owes more to China than the other countries, including France and Germany
Source: Legit.ng
