States in Nigeria including the Federal Capital Territory (FCT) generated a sum of N612.87 billion as Internally Generated Revenue (IGR) between January and June 2020. This was disclosed in the States IGR report, recently released by the National Bureau of Statistics (NBS).
According to the report, the IGR collected by the 36 states including the FCT in the first half of the year, dipped by 11.7% compared to N693.9 billion recorded in the corresponding period of 2019.
Similarly, the Q2 2020 States and FCT IGR figure stood at N259.73 billion compared to N353.14bn recorded in the previous quarter. This indicates a decline of 26.5% quarter on quarter.
Lagos, Rivers State rank highest in IGR
Lagos State recorded the highest Internally Generated Revenue with N204.51 billion, followed by Rivers State with N64.59 billion, while Jigawa State recorded the least at N3.01 billion.
- Lagos States dwarfed others to the top spot, with IGR of N204.51 billion between January and June 2020, accounting for 33.4% of the total states’ revenue during the period.
- Rivers State followed with a total revenue of N64.59 billion, representing 10.5% of total revenue generated by the States in the review period.
- Other states include; Abuja with N35.21 billion, Delta State (N30.84 billion), Ogun (N23.68 billion), Oyo (N17.77 billion), Kano (N17.51 billion), Akwa Ibom (N16.21 billion), Kaduna (N14.55 billion) and Edo State (N14.01 billion).
- On the flip side, Jigawa State generated the least IGR with N3.01 billion, followed by Ekiti State (N3.21 billion), Adamawa (N3.75 billion), Gombe (N3.79 billion) and Yobe (N3.92 billion).
States revenues dampened by COVID-19
The latest figure is a clear reflection of the effect of the COVID-19 pandemic, which necessitated the imposition of movement restrictions across the country and halt in economic activities. As a result, the States recorded decline in revenue in the review period.
The decline in revenue has caused most of the 36 states of the federation to rely majorly on Federal allocations to meet up with their government expenditures. According to the report; 34 out of the 37 states rely more on monthly allocations from the federal purse, with the exemption of only Lagos, Abuja, and Ogun State.
It is therefore important for the various state governments, to brace up and device means of generating revenue internally, considering the effects of dwindling oil price on federal revenue.