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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.

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Tinubu and Fashola owe $1.43bn foreign debt not me - Governor Ambode

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.

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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.

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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.

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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.

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“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.

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Coronavirus

FG approves N8.49billion to procure COVID-19 testing Kits, others

The fund is to procure 12 items in various quantities to strengthen the testing for COVID-19.

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President Muhammadu Buhari's full speech at China-Africa Extraordinary Summit on June 17, 2020

The federal government has approved N8.49 billion to procure 12 items in various quantities to strengthen the testing for COVID-19 by Nigeria Centre for Disease Control (NCDC).

The approval was given during the 11th virtual meeting of the Federal Executive Council presided over by President Muhammadu Buhari on Wednesday.

The approval was based on a memorandum presented to the council by the Minister of Health, Osagie Ehanire.

He was joined at the post-FEC press briefing by the Minister of Information and Culture, Lai Mohammed; and the Minister of Environment, Muhammad Mahmood.

He explained that the approval was made to further equip the NCDC to respond appropriately to the community transmission phase of the pandemic.

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Coronavirus

COVID-19: Russia to start mass inoculation of vaccine this month as it insists on its safety

The vaccine is said to be undergoing Phase 3 trials, which is the final stage.

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COVID-19: J&J starts vaccine trials on humans after success on monkeys

Russia has announced that it was going to start mass vaccination of the world’s first COVID-19 vaccine this month before the completion of clinical testing. This is just as it waved off concerns by the international community and some scientists about the safety of the vaccine.

These views were made known by the Russian Health Minister, Mikhail Murashko, on Wednesday, August 12, 2020, during a press briefing.

The Health Minister in his statement said, ‘’Western colleagues, who can sense the competitive advantage of the Russian drug, are trying to express some opinions that are completely unjustified in our view. This vaccine is a platform that is already well-known and studied,” he said, adding that other countries have developed antidotes under accelerated testing programs.’’

READ MORE: COVID-19: WHO warns there may never be an immediate solution to the virus

Murashko also said that the authorities plan to start inoculating medical workers and other risk groups within 2 weeks on a voluntary basis while pointing out that the vaccine will be made available to the general public from October.

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Nairametrics had reported yesterday that the Russian President, Vladimir Putin, in a televised meeting, announced that Russia has registered the first COVID-19 vaccine in what they see as a propaganda coup amid the global race for the development of a vaccine against the coronavirus disease.

This announcement has raised a lot of international concerns with the German Health Minister, Jens Spahn, saying on Wednesday, that Russia’s COVID-19 vaccine has not been sufficiently tested, adding that the aim was to have a safe product rather than just being first to start vaccinating people.

He said in a radio chat that it’s not about being first but rather about having an effective, tested and safe vaccine.

Experts have expressed their concerns over Russia’s decision to grant approval before the final trials of the vaccine have been completed.

READ MORE: WHO gives condition for approving Russia’s COVID-19 vaccine as the vaccine gets a name

He said that as much as he will be pleased to have a good vaccine for the virus, he pointed out that the Russians are not disclosing much about this vaccine.

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This vaccine which is developed by Gamaleya Institute in collaboration with the Defence Ministry and the Russian Direct Investment Fund (RDIF), is said to be undergoing Phase 3 trials, which is the final stage.

However, a World Health Organization (WHO) database still lists the vaccine as still only in Phase 1 trial, which is the earliest stage.

The RDIF said that it can produce over 500 million doses of the new vaccine in a year in 5 countries, just as it disclosed that a minimum of 20 countries are currently interested in having access to these vaccines.

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The WHO had earlier revealed that it is currently discussing with Russia and pointed out that in granting prequalification of the vaccine, a detailed review of data from clinical trials will be required.

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Economy & Politics

FG completes 11 projects to drive Digital Economy

The government has been pushing the Digital Economy in a bid to diversify economic productivity.

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FG completes 11 projects to drive Digital Economy, FG orders NIPOST to stop cash transactions , Pantami moves to ban automatic voicemail service by telcos  , Why Nigeria’s Data woes may not end soon , Pantami reacts to CBN’s ATM fee cut, keeps mute on directive to cut data cost , Pantami condemns FIRS move to collect stamp duty, MTN, Airtel, others disregarding Pantami’s voicemail, data directives on all front , FG warns State governments against RoW charge increase, FG reiterates commitment towards implementing broadband strategy ,FG reiterates commitment to 75% broadband penetration in 5 years 

The Federal Ministry of Communications and Digital Economy announced that it has completed 11 projects to drive its Digital Economy programme.

This was announced by the Minister of Communications and Digital Economy, Dr. Isa Pantami, during the phase 2 commissioning of Nigeria’s Digital Economy drive.

The Nigerian Government has been pushing the Digital Economy in a bid to create growth and diversify economic productivity in the nation, starting with the Digital Economy drive which was added to the portfolio of the Ministry of Communications.

READ MORE: Nigeria’s broadband penetration rises, yet internet remains slowest in the world

Nairametrics reported last month that the Nigerian Communications Commission (NCC) also approved the creation of a Digital Economy Department, which will be responsible for promoting the digital economic agenda of the federal government. The department will renew the commission’s strategy for delivering its programmes and policies, and give the necessary push to promote the national digital economy.

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The projects were launched with the supervision of the Ministry of Communications and Digital Economy and would be operated by the Nigerian Communications Commission (NCC), National Information Technology Development Agency, (NITDA) Nigerian Postal Services (NIPOST ) and The Universal Service Provision Fund (USPF) and would be located nationwide.

READ ALSO: NCC issues 10 new VAS licences in 2019, projects market to hit $500 million 

The 11 projects are:

  1. Emergency Communications Centre (ECC) llorin, Kwara State.
  2. Emergency Communications Centre (ECC) Calabar, Cross River State.
  3. School Knowledge Centre (SKC), Gombe State.
  4. Information Technology Innovation Centre, Kogi State.
  5. Tertiary Institution Knowledge Centre (TIKC), Delta State.
  6. New Neighborhood Post Office, Delta State.
  7. Remodelled National Mail Exchange Centre, Bayelsa State.
  8. e-Health/Data Sharing Centre, Bauchi State.
  9. Virtual Examination Centre, Borno State.
  10. Information Technology Capacity Building Centre, Jigawa State.
  11. Information Technology Capacity Building Centre, Imo State.

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