Emmanuel OchayiLagos, Rivers, and the Federal Capital Territory (FCT) emerged as the frontrunners in state-generated revenue, with a collective total of N1.93 trillion in 2022.
Data released by the National Bureau of Statistics (NBS) on Monday revealed that the nation’s states saw their Internally Generated Revenue (IGR) inch up by 1.57 percent from the N1.89 trillion recorded in 2021.
READ ALSO: FG, States, LGAs Share N1.1 Trillion As Revenue Allocation For August Amidst Economic Fluctuations
Lagos took the lead with N651.15 billion, followed by Rivers at N172.82 billion, and the FCT at N124.37 billion. Ogun and Delta states rounded out the top five, contributing N120.58 billion and N85.90 billion, respectively.
At the other end of the spectrum, Kebbi, Taraba, Yobe, Ebonyi, and Katsina were the bottom states, with IGRs ranging from N9.15 billion to N13.06 billion.
The NBS clarified that the IGR figures for 2022 were sourced from taxes and Ministries, Departments, and Agencies’ (MDAs) revenue. The tax sub-category included Pay As You Earn (PAYE), direct assessment, road taxes, stamp duties, capital gain tax, withholding taxes, other taxes, and Local Government Areas (LGAs) revenue.
According to the NBS, “PAYE was the primary contributor to revenue during the year, representing 67.62 percent of the total tax revenue generated nationwide. Capital gains tax accounted for the least share, with a mere 0.24 percent of the total tax revenue.”
Further analysis revealed that Oyo, Lagos, and Jigawa led in LGAs revenue for the year, reporting N11.83 billion, N11.51 billion, and N8.70 billion, respectively.
While there was a marginal increase in IGR, states continued to heavily rely on Federal Government allocations in 2022. The total allocation from the Federation Account Allocation Committee (FAAC) to states, excluding the FCT, amounted to N3.16 trillion, which was 63.73 percent higher than the states’ combined IGR for the year. To cover expenses, states domestically borrowed N870 billion.
In 2022, only 11 states, along with the FCT, managed to attract foreign investors, while the others missed out on valuable investment opportunities.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
Follow Us