As states’ internally-generated revenues also slip

 Last year, states’ internally generated revenues (IGRs) slipped, indicating an increasing dependence on Abuja to fund state governments’ expenditures, much of which is recurrent.

Two per cent dip in revenue mobilisation, which was what the fall was when weighed against the general business environment, is fair and understandable. But the devil, as it were, is not in the insignificant drop. The uneven spread of the percentage loss among the states validates, once again, the viability concern raised by advocates of fiscal federalism in the past years.

According to the internal revenue data released by the National Bureau of Statistics (NBS), on Friday, 18 states reported a decline of an average of 19 per cent in their last year’s IGRs.

Benue emerged as the worst-performing state in the year with its income crumbling by as much as 41 per cent while Sokoto’s slipped by 37.9 per cent. Kwara, Jigawa and Ogun states had their internal revenue earnings cut by 36 per cent, 33 per cent and 28.4 per cent, respectively, to join Benue and Sokoto at the bottom of the table.

Abia, Akwa Ibom, Delta, Yobe, Bayelsa, Adamawa, Rivers, Ondo, Edo, Niger, Kano, Enugu and Cross River also recorded negative growth, which may have weakened their fiscal position and worsened their economic sustainability.

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