Business News
States’ IGR hits N1.16trn in 2018, as Lagos maintains first spot
The total Internally Generated Revenue (IGR) by all states in Nigeria hits N1.16tn in 2018. This is revealed is the full year IGR report released by NBS.
The total Internally Generated Revenue (IGR) by all states in Nigeria hits N1.16tn in 2018. This is revealed in the latest full year IGR report released by the National Bureau of Statistics (NBS), covering the year 2018.
According to the NBS report, the latest IGR data indicates a positive growth of 22.79% quarter on quarter and 24.82% Year on Year. Specifically, in 2017 total IGR was 936.4bn, thereby increased to 1.16trn
The breakdown shows that Lagos State maintained a distant top as it recorded the highest IGR of N382.1 billion in 2018, followed by Rivers State (N112.7bn) and Ogun State (N84.5bn).
Similarly, IGR for states in the fourth quarter shows that IGR figure hit N324.59bn compared to N264.34bn recorded in Q3 2018. This indicates a positive growth of 22.79% quarter on quarter and 24.82% year on year.
Top ten states with highest IGR in 2018: The top 10 states in Nigeria in term of 2018 IGR accounted for 71 percent of total IGR. The breakdown shows that the top 10 states accumulated a total of N830.2bn IGR in 2018.
North East zone dominated 10 states with the least IGR: In the NBS report, data shows that the North East region dominated the 10 states. The North Eastern States include: Adamawa, Bauchi, Borno, Gombe, Taraba and Yobe States.
Overall, the 10 States with least IGR recorded N62.4bn in 2018. On the top ten list are: Nassarawa, Gombe, Katsina, Borno, Ekiti, Adamawa, Ebonyi, Taraba, Kebbi and Yobe States. Five out of these states with the lowest IGR are from the North East zone of Nigeria. This further suggests the reasons behind the low level of underdevelopment in the region.
Lagos tops IGR in last quarter 2018: All states including the FCT generated a total of N324.5bn IGR in the last quarter of 2018. Some highlights are revealed below:
- Thirty-one (31) states and the FCT recorded growth in IGR
- Five (5) states recorded a decline in IGR
- Lagos recorded highest IGR in Q4, followed by Rivers and Ogun States
- Kebbi, Adamawa, and Yobe all recorded the least IGR in Q4.
Total IGR of Lagos state in 2018 larger than all states in Q4 IGR: For the full year 2018, Lagos state also tops with N382bn. When this is compared with the N324.5bn IGR generated by all the states in Q4, shows that over one-fourth of IGR in Nigeria is generated in Lagos. Specifically, 33 percent of total IGR in 2018 is accruable to Lagos State.
South-West and South-South zones control 71% of IGR in 2018: Unsurprisingly, the IGR data shows that about N788bn out of 1.1trn recorded across all states excluding FCT. It indicates that 71.4% of the total IGR was from these two zones in the country. Southwest generated N533bn, while South-South recorded N225bn.
High IGR deprived of developments: The IGR data shows that two zones recorded more IGRs, and this has reflected in their levels of development as well. Specifically, South West recorded the lowest unemployment in the third quarter of 2018. What this shows is that the low level of unemployment could be traced to the high level industrialization in the zone, which pressures down unemployment. This means the economy of this zone is on a growth path.
However, South-South region ranks second in IGR, but the zone recording the highest unemployment rate in the country. This suggests that the zone may be witnessing an unbalanced growth pattern, where IGR is skewed towards the oil-related revenue which does not have high labour absorptive capacity.
Lastly, the Northern zones of Nigeria, which generated onky 28% of IGR, really need to do more to attract development across the region. Although unemployment is relatively average, underemployment remains quite high. Agriculture is the dominant sector in these regions, and the moribund state of the sector in Nigeria may be responsible for the low IGR.
[Also Read: Delta State takes the biggest share of states FAAC allocation]
Recently, the Vice President, Yemi Osinbajo, reportedly charged States to emulate Lagos State in terms of IGR and minimum wage.
“Lagos State, the highest IGR earner, was earning N600m in IGR when the minimum wage was increased from N7,500 to N18,000 — about 140 percent increase. We are confronted again with the new increase in the minimum wage. So, as scripture says, ‘There is nothing new under the sun. We must confront the problem, not merely by hoping that the Federal Government can do more.
“Already, our deficit is close to N2trn, while debt service is somewhere in the order of 54 per cent. States must, in the next few years, earn more in IGR.
Coronavirus
COVID-19 Update in Nigeria
On the 29th of November 2020, 82 new confirmed cases were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 67,412 confirmed cases.
On the 29th of November 2020, 82 new confirmed cases were recorded in Nigeria, having carried out a total daily test of 7,101 samples across the country.
To date, 67,412 cases have been confirmed, 63,055 cases have been discharged and 1,173 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 756,237 tests have been carried out as of November 29th, 2020 compared to 749,136 tests a day earlier.
COVID-19 Case Updates- 29th November 2020,
- Total Number of Cases – 67,412
- Total Number Discharged – 63,055
- Total Deaths – 1,173
- Total Tests Carried out – 756,237
According to the NCDC, the 82 new cases were reported from 11 states- Lagos (48), Rivers (8), Kwara (6), Yobe(6), Katsina (5), FCT(3), Nasarawa(2), Plateau (1), Ogun (1), Kano (1) and Osun(1)
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 23,238, followed by Abuja (6,770), Plateau (3,858), Oyo (3,721), Kaduna (3,064), Rivers (2,985), Edo (2,696), Ogun (2,223), Delta (1,824), Kano (1,795), Ondo (1,728), Enugu (1,332), Kwara (1,102), Ebonyi (1,055), Katsina (1,030), Osun (946), Gombe (938). Abia (926), Bauchi (770), and Borno (745).
Imo State has recorded 662 cases, Benue (496), Nasarawa (493), Bayelsa (445), Ekiti (365), Akwa Ibom (339), Jigawa (331), Niger (298), Anambra (285), Adamawa (261), Sokoto (165), Taraba (159), Yobe (100), Kebbi (93), Cross River (90), Zamfara (79), while Kogi state has recorded 5 cases only.
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Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
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Energy
Transmission company of Nigeria gives reason for nationwide blackout
Following the current nationwide blackout, TCN has stated that it has started the process of restoration to the national grid.
The Transmission Company of Nigeria (TCN) has on Sunday announced that the current power blackout in the country was due to multiple trippings.
According to a report by Vanguard, General Manager, Public Affairs, TCN, Ndidi Mbah, who made the announcement through a statement said the company had started the process of restoration to the national grid.
Mbah pointed out that the places that power is yet to be restored were Calabar, Makurdi, Jos, Gombe, Yola, Ugwuaji and Maiduguri axis.
She stated, “The Transmission Company of Nigeria (TCN) regrets to inform electricity consumers nationwide that at 11:25 am today, the nation’s electricity grid experienced multiple trippings, which led to the collapse of the system.’’
“TCN has since commenced grid restoration; power has been successfully restored to every part of the country, except Calabar, Ugwuaji, Markurdi, Jos, Gombe, Yola, and Maiduguri axes. The effort is however ongoing to ensure full restoration nationwide.”
“We regret the inconvenience this has caused electricity consumers. Investigations would be conducted to establish the immediate and remote cause(s) of the multiple trippings as soon as the grid is fully restored, considering that the grid had been relatively stable in the last couple of months.”
What you should know
At around 11:25 pm on Sunday, November 29, electricity supply to most parts of the country was disrupted as the national electricity grid experienced multiple trippings.
Energy
FG to start the installation of 5 million solar power across the country next week
FG will next week commence the process of installation of 5 million solar-home systems in under-served and off-grid communities across the country.
The Federal Government has announced that it will commence the process of the installation of 5 million solar-home systems in under-served and off-grid communities across the country from next week.
This move is in continuation of coordinated implementation of the Economic Sustainability Plan (ESP) which is being coordinated by a committee headed by Vice President Yemi Osinbajo, across the country.
READ: FG says 174,574 successfully register for N75 billion MSME survival fund in 48 hours
This disclosure is contained in a series of tweet posts by the Presidency on Sunday, November 28, 2020, through their official Twitter handle.
It stated that the programme will include the assembly and manufacturing of components of off-grid solutions to facilitate the growth of the local manufacturing industry, while there will be incentives for use of local content. The first set of installation will be done nationwide in December 2020.
READ: FG disburses MSMEs Survival Fund in Lagos, Kano, FCT and 9 other states
The tweet post from the Presidency stated, ‘’In continuation of a coordinated implementation of the Economic Sustainability Plan (ESP) across the country, the Buhari administration will next week commence the process of installation of 5 million solar-home systems in under-served and off-grid communities across the country.’’
According to the statement, the Central Bank of Nigeria will make available funds to the private companies in the solar power sector involved in the manufacture, assembling installation, servicing of the solar systems, at rates ranging between 5 to 10%.
READ: FG guarantees mortgage loan to low income buyers at low interest rate
It also states that apart from providing access to affordable energy, the objective of the plan is to improve social, economic and environmental welfare of 25 million Nigerians while generating jobs, increasing revenues and import substitution.
READ: FG goes after AMCON’s N5trillion debtors, sets up task force on funds recovery
Explore Data on the Nairametrics Research Website
What you should know
The NESP, which was approved by the Federal Executive Council on June 24, 2020 and developed by the Economic Sustainability Committee, chaired by Vice President Yemi Osibanjo, is to develop a plan that responds robustly and appropriately to the challenges posed by the Covid-19 pandemic amongst other terms of reference.
A major part of the plan is the installation of solar home systems that targets 5 million households, serving about 25 million individual Nigerians who are currently not connected to the National Grid. The solar manufacturers will be required to set up production facilities in Nigeria and provide the materials required.
READ: Covid-19: Nigerian government explains how it will fund proposed N2.3 trillion stimulus
In continuation of a coordinated implementation of the Economic Sustainability Plan (ESP) across the country, the Buhari administration will next week commence the process of installation of 5 million solar home systems in under-served and off-grid communities across the country.
— Presidency Nigeria (@NGRPresident) November 29, 2020
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COVID-19 Update in Nigeria
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