The latest Internally Generated Revenue (IGR) report released by the National Bureau of Statistics, revealed that 36 states and the Federal Capital Territory, generated a sum of N1.33 trillion in 2019, a 14.1% increase compared to N1.17 trillion generated in 2018.
According to the report, 83.4% (N1.11 trillion) of the generated revenue was in form of taxes, while 16.6% (221.56 billion) was from MDAs’ revenue.
The report showed that 33 states, including Abuja, recorded positive growth in revenue, while 4 states generated less in 2019 compared to 2018.
- Lagos state maintains its position as the commercial hub of Nigeria as it contributed 29.9% (N398.73 billion) to the total states’ IGR.
- Rivers state followed, having generated a sum of N140.4 billion, thereby contributing 10.5% to the total revenue generated.
- The Federal Capital Territory ranked third as it generated N74.56 billion (5.6%) internally.
- Other states with the biggest IGR for 2019 include Ogun (N70.9 billion), Delta (N64.7 billion), Kaduna (N44.9 billion), Kano (N40.6 billion) as well as Akwa Ibom. Enugu and Kwara states followed with N32.3 billion, N31.1 billion and N30.6 billion respectively.
Yobe, Zamfara, Osun, others record highest growth in IGR
While Lagos and Rivers states dwarfed others in revenue generation, Yobe, Zamfara, and Osun states recorded the highest positive growth in IGR for the year ended 2019.
- Yobe state recorded the highest rise in IGR between 2018 and 2019 as the revenue grew by 92.7% from N4.38 billion to N8.44 billion.
- Zamfara and Osun states followed with respective growths of 87.85% and 72.64%. Specifically, Zamfara state grew its revenue from N8.2 billion to N15.4 billion, while Osun IGR rose from 10.4 billion in 2018 to N17.9 billion in 2019.
- Other states that significantly grew their IGR include Benue, Adamawa and Kaduna, having grown their revenue by 59.2%, 56.4%, and 52.7% respectively.
Revenue drought amidst COVID-19 pandemic
As the confirmed cases of COVID-19 in Nigeria continue to increase by the day, having spread across 34 states of the federation, and forcing a partial shutdown of the economy, the country faces a possible recession in 2020.
Recall that IMF earlier predicted that Nigeria’s economy would slide by 3.4% in 2020 and the Finance Minister recently admitted that the crash in crude prices would negatively affect the country’s revenue and foreign exchange earnings.
The internally generated revenue serves a major source of revenue for most states, but with the decline in economic activities during the pandemic, there is a major concern as to how most states will be able to manage their affairs.
Meanwhile, many states and local governments depend on monthly statutory allocations from the central vault to carry out their businesses, and as the country’s revenue is expected to decline, the FAAC allocations to states will also reduce.
The big question is how will the states fare amidst COVID-19 pandemic.
COVID-19 Update in Nigeria
On the 29th of October 2020, 150 new confirmed cases and 2 deaths 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 62,521 confirmed cases.
On the 29th of October 2020, 150 new confirmed cases and 2 deaths were recorded in Nigeria, having carried out a total daily test of 3,008 samples across the country.
To date, 62,521 cases have been confirmed, 58,249 cases have been discharged and 1,141 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 620,758 tests have been carried out as of October 29th, 2020 compared to 617,750 tests a day earlier.
COVID-19 Case Updates- 29th October 2020,
- Total Number of Cases – 62,571
- Total Number Discharged – 58,249
- Total Deaths – 1,1141
- Total Tests Carried out – 620,758
According to the NCDC, the 150 new cases are reported from 9 states- Lagos (89), Rivers (19), Ogun (11), Bayelsa (9), Kaduna (8), Plateau (8), Taraba (3), Osun (2), Delta (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 21,106, followed by Abuja (6,028), Plateau (3,630), Oyo (3,433), Rivers (2,809), Edo (2,657), Kaduna (2,641), Ogun (2,027), Delta (1,814), Kano (1,746), Ondo (1,666), Enugu (1,314), Kwara (1,069), Ebonyi (1,049), Katsina (952), Osun (925), Abia (898), Gombe (883). Borno (745), and Bauchi (711).
Imo State has recorded 616 cases, Benue (491), Nasarawa (482), Bayelsa (412), Ekiti (332), Jigawa (325), Akwa Ibom (295), Anambra (277), Niger (274), Adamawa (257), Sokoto (165), Taraba (146), Kebbi (93), Cross River (87), Yobe (82), Zamfara (79), while Kogi state has recorded 5 cases only.
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.
FG warns Nigerians about on-going N3million COVID-19 grant scam
FG has warned Nigerians to beware of scammers using phishing links to defraud unsuspecting members of the public.
The Federal Government has issued a warning to Nigerians about an ongoing N3million COVID-19 scam in circulation.
This was disclosed by the Federal Ministry of Finance, Budget and National Planning via its Twitter handle.
According to the government, the scam targets Nigerians looking to benefit from the Federal Government assistance to businesses affected by COVID-19.
In the tweet, it warned about some phishing links being shared on social media, requesting for applications for N3 Million FG Grants.
It tweeted, “The general public should note that these phishing links are generated by Scammers and intended to defraud unsuspecting Nigerians.
“Government requests for applications are only via official channels & websites.
“It has come to our attention that a link is being shared via social media requesting for applications for a FG N3 Million grant.
“The general public should note that this is a SCAM. Any requests for applications are only via official channels & websites. Pls beware! #FinMinNigeria.”
It has come to our attention that a link is being shared via social media requesting for applications for a FG 3 Million grant. The general public should note that this is a SCAM. Any requests for applications are only via official channels & websites. Pls beware! #FinMinNigeria pic.twitter.com/C0Z2EcUbQF
— Ministry of Finance, Budget and National Planning (@FinMinNigeria) October 27, 2020
What they are saying
Okebunmi Omolaja, has tasked the Federal Government to take its warning further from the social media to other publicity tools in order to spread the information across Nigeria.
He said, “The Ministry can help by carrying the awareness campaigns to States radio stations or federal officers in each States to meet the CDA Leaders of their traditional rulers palaces/govt schools premises.”
The Ministry can help by carrying the awareness campaigns to States radio stations or federal officers in each States to meet the CDA Leaders of their traditional rulers palaces/govt schools premises.
— okebunmi omolaja (@Okebunmilajman) October 28, 2020
Explore some Advanced Financial Calculators on Nairametrics
COVID-19: Our economy is too fragile to bear another round of lockdown – Buhari
President Buhari has called on Nigerians to do all they can to avert a second wave of COVID-19 in Nigeria.
President Muhammadu Buhari said that the Nigerian economy is too fragile to go into another lockdown, as the second wave of coronavirus forces some European countries – Germany and France, to enter another phase of lockdown.
The President disclosed this in a social media statement on Thursday afternoon via his official Twitter handle.
Looking at the trends in the other countries, we must do all we can to avert a second wave of Covid-19 in Nigeria. We must make sure that our cases, which have gone down, do not rise again. Our economy is too fragile to bear another round of lockdown.
— Muhammadu Buhari (@MBuhari) October 29, 2020
Buhari said Nigeria will work hard to control its local spread, as the country can’t afford a lockdown.
“Looking at the trends in other countries, we must do all we can to avert a second wave of COVID-19 in Nigeria. We must make sure that our cases, which have gone down, do not rise again. Our economy is too fragile to bear another round of lockdown,” President Buhari said.
What you should know
According to a Bloomberg report, the rising cases of COVID-19 in Europe have led to another phase of lockdowns, with the Eurozone’s 2 biggest economies, Germany and France announcing new lockdowns restrictions.
“The measures we’ve taken have turned out to be insufficient to counter a wave that’s affecting all Europe,” said French President Emmanuel Macron
In August, Nairametrics reported that President Buhari approved the extension of the second phase of eased lockdown by another 4 weeks.
Nigeria’s Gross Domestic Product (GDP) in real terms declined by 6.10% (year-on-year) in Q2 2020, ending the 3-year trend of low but positive real growth rates recorded since the 2016/17 recession.