Connect with us
iubh
Advertisement
Alpha
Advertisement
Hotflex
Advertisement
british airways
Advertisement
Advertisement
UBA
Advertisement
Patricia
Advertisement
app

Macro-Economic News

IGR: States generate N612.9 billion in H1 2020, dips by 11.7% 

The IGR generated by the 36 states including the FCT  in the first half of the year, dipped by 11.7%.

Published

on

States lose N35.51 billion to bail-out , FAAC disburses N650.8 billion as South-South states receive highest share

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. 

READ: Nigeria generates N876.09 billion VAT in 9-month, as revenue shortfall poses threat 

Lagos, Rivers State rank highest in IGR 

Lagos State recorded the highest Internally Generated Revenue with N204.51 billionfollowed 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). 

READ: Lagos projects increase in IGR despite impressive performance

Hotflex

States revenuedampened 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.  

british airways

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. 

Stanbic 728 x 90
0
Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Economy & Politics

Nigerian states generate N1.31 trillion IGR in 2020 as Lagos dwarfs others

The 36 states and the Federal Capital, generated a sum of N1.31 trillion as Internally generated revenue (IGR) in 2020

Published

on

FAAC, IGR, Fiscal federalism in Nigeria, NEC Inauguration, Bailout Fund: FG begins deduction of N614 billion from states’ allocation in 2 weeks , Ekiti, Enugu, Bayelsa, 12 others attract no investment in 1H , States’ debt stock, Fiscal federalism

The 36 states and the Federal Capital Territory generated a sum of N1.31 trillion as Internally generated revenue (IGR) in 2020. This was contained in the state IGR report, which was recently released by the National Bureau of Statistics (NBS).

According to the report, the states’ IGR declined by 1.93% from N1.33 trillion, recorded in the previous year to N1.31 trillion in 2020. It however increased by 11.7% compared to N1.69 trillion recorded in 2018.

The decline may be due to the effects of the covid-19 pandemic on the various states of the federation, as they were forced to implement lockdown protocols to curb the spread of the disease in the country.

Highlights

  • States generated N1.09 trillion from taxes in the year 2020, accounting for 83.3% of the total IGR received in the year.
  • Tax revenue also declined, when compared to N1.11 trillion collected in the previous year. This represents a 2.25% decline year-on-year.
  • Lagos State recorded the highest Internally Generated Revenue of N418.99 billion, accounting for 32.1% of the total and closely followed by Rivers State with N117.19 billion.
  • Others with the highest IGR in 2020 include Abuja (N92.06 billion), Delta (N59.73 billion), and Kaduna (N50.75 billion).
  • Kebbi State recorded the highest year-on-year growth of 87.02%, closely followed by Ebonyi at 87.3%. Oyo State grew its IGR by 42.23%, Borno (41.63%), while Katsina grew by 34.16%.
  • On the flip side, Benue State recorded the highest year-on-year decline of 41.38%, followed by Sokoto State, which dipped by 37.93%, Kwara (36.03%), Jigawa (32.95%), and Ogun State (N28.44%).

A cursory look at the data shows that the States recorded the highest quarterly IGR in the first quarter of the year, before the covid-induced lockdown in March 2020. It however dipped significantly by 25.53% to stand at N269.88 billion in Q2 2020.

States generated a sum of N338.57 billion in Q3 2020 and then recorded a marginal decline in Q4 2020 to stand at N335.25 billion.

Lagos dwarfed others

Lagos State recorded the highest internally generated revenue in 2020, having made N418.99 billion, accounting for 32.08% of the total states’ IGR recorded in the period under review.

  • It is no surprise that Lagos State makes this much revenue as it is regarded as the commercial hub of Nigeria.
  • According to the data from NBS, Rivers State is a distant second on the list with N117.19 billion as IGR, representing 8.97% of the total, while the Federal Capital Territory, Abuja followed closely with N92.06 billion, representing 7.05% of the total recorded in the year.
  • Others on the list include Delta State (N59.73 billion), Kaduna State (N50.77 billion), Ogun (N50.75 billion), and Oyo State with N38.04 billion.

Kebbi, Ebonyi boosted revenue by over 80%

Kebbi State and Ebonyi State grew their internally generated revenue by over 80%, with Kebbi recording 87.02% growth in IGR to stand top on the list of states with the highest growth rate; followed closely by Ebonyi State with 82.3% growth in IGR to stand at N13.59 billion.

  • Oyo State grew its IGR by 42.23%, Borno (41.63%), Katsina (34.16%), and Gombe (25.5%).
  • Meanwhile, 18 out of the 37 states of the federation recorded a decline in IGR in 2020, a list led by Benue State, having dipped its annual IGR by 41.38%, followed by Sokoto with 37.93%, Kwara (36.03%), Jigawa (32.95%), and Ogun State with a decline of 25.44%.

What this means

  • The decline in states’ internal revenue was caused by the pandemic which struck earlier in 2020, disrupting economic activities in the country.
  • Nigeria recorded a recession in the third quarter of 2020, after a consecutive economic contraction, recorded in Q2 and Q3 2020.
  • It, however, recovered from the recession in the fourth quarter. It is therefore hoped that as economic activities resume fully in the country, the states will be able to boost their revenue in the short-to-medium term.

Hotflex
0
Continue Reading

Macro-Economic News

Nigeria’s inflation rate surges to 18.17% in March 2021

Nigeria’s inflation rate for the month of March 2020, rose to 18.17% from 17.33% recorded in February 2021.

Published

on

Nigeria’s inflation rate for the month of March 2020, rose to 18.17% from 17.33% recorded in February 2021. This represents 0.82% points higher than the February figures.

This is according to the Consumer Price Index report, recently released by the National Bureau of Statistics (NBS).

On a month-on-month basis, the Headline index increased by 1.56% in March 2021, this is 0.02% points higher than the rate recorded in February 2021 (1.54 percent).

Food inflation

Food inflation, a closely watched index spiked to 22.95% from 21.79% recorded in the previous month.

  • On a month-on-month basis, the food sub-index increased by 1.9% in March 2021, up by 0.01% points from 1.89% recorded in February 2021.
  • The rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam, and other tubers, Meat, Vegetables, Fish, Oils and fats, and fruits.
  • Also, the average annual rate of change of the Food sub-index for the twelve-month period ending March 2021 over the previous twelve-month average was 17.93%, representing 0.68% points from the average annual rate of change recorded in February 2021 (17.25%).

Core inflation

The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce rose to 12.67% in March 2021, up by 0.29% when compared with 12.38% recorded in February 2021.

  • On a month-on-month basis, the core sub-index increased by 1.06% in March 2021. This was down by 0.15% when compared with 1.21% recorded in February 2021.
  • The average 12-month annual rate of change of the index was 10.01% for the twelve-month period ending March 2021; this is 0.76 percent points lower than 10.77% recorded in February 2021.
  • The highest increases were recorded in prices of Passenger transport by air, Medical services,
    Miscellaneous services relating to the dwelling, Passenger transport by road, Hospital services, Passenger transport by road.
  • Others include; Pharmaceutical products, Paramedical services, Vehicle spare parts, Dental services, Motor cars, Maintenance and repair of personal transport equipment, and Hairdressing salons and personal grooming establishment.

Meanwhile, the urban inflation rate rose to 18.76% (year-on-year) in March 2021 from 17.92%
recorded in February 2021, while the rural inflation rate jumped to 17.6% in March 2021 from 16.77% in February 2021.

State inflation rate

  • In March 2021, all items inflation on year on year basis was highest in Kogi (24.51%), Bauchi (22.24%), and Sokoto (20.70%), while Imo (16.08%), Kwara (15.34%), and Cross River (14.45%) recorded the slowest rise in headline Year on Year inflation.
  • In terms of food inflation, on a year on year basis was highest in Kogi (29.71%), Sokoto (27.02%), and Ebonyi (26.59%), while Abuja (20.10%), Kebbi (19.98%), and Bauchi (18.61%) recorded the slowest rise .in year on year inflation.

What this means

  • The galloping nature of Nigeria’s inflation is an indication of the dwindling purchasing power of Nigerians.
  • This implies that Nigerians spent more on purchasing goods and services in the month of March, compared to February.
  • The last time Nigeria recorded an inflation rate higher than 18.17%, was in January 2017 when headline inflation stood at 18.72%.

Hotflex
0
Continue Reading

  





Nairametrics | Company Earnings

Access our Live Feed portal for the latest company earnings as they drop.