15 States may go bankrupt - Report


Fifteen Nigerian states may go bankrupt due to their poor Internally Generated Revenues (IGR) in 2015, which were as low as 10% of their Federation Account Allocations (FAA) in one year from June 2015 to May 2016, an investigation by the Economic Confidential has shown.

According to the report, the IGR of Lagos State of N268 billion is higher than that of 32 States combined together, excluding Rivers, Delta and Ogun whose IGRs are very impressive.

The 32 other states merely generated a total of N257 billion in 2015, it said.

In its latest report on IGRs, Economic Confidential, an economic intelligence magazine, revealed the total allocation each state in Nigeria received from the Federation Account Allocation (FAA) between June 2015 to May 2016 which signified one year of the President Muhammadu Buhari adminsitration.

As revealed in the report, only Lagos State generated more revenue than its allocation from the Federation Account by 150% and no other state has upto 100% of IGR to the federal largese.

The IGR of the 36 states of the federation totalled N682.67 billion in 2015 as compared to N707.85 billion in 2014, a drop of N25.18 billion or a minus 3.56 percent.

The report indicated that 15 states may not stay survive outside the Federal Account Allocation due to lack of creativity and foresight in revenue generation drive.

The potentially bankrupt states include Yobe which generated N2.2 billion compared to a total of N57.4 billion it received from the Federation Account Allocation (FAA) from June 2015 to May 2016 representing about 3.9%.



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