BREAKING: Report Declares 6 States Insolvent, Find Out If Yours Is Among

A report by Economic Confidential, a subsidiary of PR Nigeria, has just named 6 states insolvent in the country…..CONTINUE READING HERE

In other words, those states may die if denied federal allocations.

The Assistant Editor of Economic Confidential, Zekeri Idakwo, disclosed this at a press briefing and presentation of the 2022 Annual States Viability Index Report in Abuja on Monday.

He said the report was compiled from figures released by the Nigerian Bureau of Statistics, and the Federal Account Allocation Committee.

Idakwo said, “The IGR of the 36 states of the federation totaled N1.8trn in 2022, which was above that of 2021, which was N1.76trn.

By implication, governors in charge in those states have not done creditably well in mounting programmes and policies that could generate enough income for their respective states.

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While two are Niger Delta states, the rest are from the north.

The 6 states insolvent, based on the classification are Bayelsa, Akwa Ibom, Katsina, Taraba, Yobe and Kebbi States

“The six states that may not survive without the Federation Account due to their extremely poor internal revenue generation of less than 10% compared to their federal allocations are Bayelsa, Katsina and Akwa Ibom, the home states of former Presidents Goodluck Jonathan, Muhammadu Buhari, and the current Senate President Godswill Akpabio respectively.

“Others are Taraba, Yobe and Kebbi States,” the report added.

Bayelsa is the least on the table, having received N273bn as against generating only N15.9bn, representing 5.81% of the allocations.

Kebbi received N119bn and generated N9bn (7.67%); Katsina received N165bn and generated N13bn (7.90%); Akwa Ibom received N360bn and generated N34.8bn (9.66%); Taraba received N103bn and generated N10.2bn (9.91%); while Yobe received N105bn and generated N10.4bn (9.91%).

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Idakwo stated that the states’ IGR could be improved “through aggressive diversification of the economy to productive sectors, rather than relying on the monthly Federation Account revenues that largely come from the oil sector”.

On the other hand, Lagos comes tops on the positive side:

“The report further indicates that the IGR of Lagos State of N651bn is higher than that of 30 other states put together whose Internally Generated Revenues are extremely low and poor, compared to their allocations from the Federation Account.

“A total Internally Generated Revenue of N1.5trn from the seven most viable states in 2022, was almost twice the total IGR of 29 states together that merely generated about N650bn.”

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A breakdown of the report showed that while Lagos received N370bn from FAAC, the state generated N651bn; Ogun received N113bn and generated N120.5bn; Rivers received N363.4bn and generated N172bn; Kaduna received N155bn in federal allocation, and generated N58bn; Kwara received N99bn and generated N35.7bn; Oyo received N181bn and received N62bn; and Edo received N147bn in federal allocation, and generated N47.4bn.

He added that the states may not be able to stay afloat outside the monthly allocations, noting that some of the states were unable to attract investments due to socio-political and economic crises including insurgency, kidnapping, armed banditry and herdsmen-farmers clashes.

The question that this may raise is” should the 6 states insolvent have any justification not to have become viable, all things being equal?….CONTINUE READING HERE