Nigeria: FG Raises Alarm Over Low Revenue By State Governments

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Federal Government raised the alarm over low level of Internally Generated Revenue by state governments and declared Katsina, Kebbi, Borno, Bayelsa and Taraba States having become insolvent after their IGR collections were declared extremely poor. 

The Revenue Mobilisation Allocation and Fiscal Commission Chairman, Mr Elias Mbam, who raised the concern noted that the Federation Account was currently over stressed by the unending demands of the three tiers of government, urging states to evolve creative ways of fattening their IGR to lessen the strain on the federal purse.

Receiving the Annual States Viability Index from the Editor-in-Chief of the Economic Confidential, Mr. Yushau A. Shuaib in his office in Abuja, Mbam restated the need for the various tiers of government to endeavor to develop alternative sources of revenue in view of the Federal Governments declining incomes.

According to the index, Rivers, Kaduna, Enugu, Kwara and Zamfara posted impressive IGR in 2019.

Mbam said the annual ASVI report apart from providing a good source of information to the general public also has been identified as a source of information that would drive RMAFC on its mandate to encourage states of the federation to improve their Internally Generated Revenue.

Speaking on the report, the Editor-in-Chief of the Economic Confidential, Mr. Yushau Shuaib, said the ASVI report assessed and ranked states by their annual IGR in comparison to their receipts from the Federation Accounts Allocation.

Mr. Shuaib stated that apart from Lagos and Ogun States that ranked high in the revenue generation in 2019, more states have recorded impressive and encouraging IGR in 2019 compared to 2018.

The report shows that only Rivers, Kaduna, Enugu, Kwara and Zamfara States did well with regards to impressive revenue generation in 2019 compared to their IGR in the previous year 2018 by improving more than 10 percent.

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