• Lagos accounts for 51%, Ogun 12 %
Nineteen out of the 36 states of tNineteen out of the 36 states of the federation amassed a total of N473.08 billion as internal generated revenues as at the third quarter of this year, the National Bureau of Statistics has revealed.
The amount, which is a year to date (YTD) figure, that is, Q3 YTD, represented the states that reported their revenues generated from a period of January to September and excluded figures from Rivers, Sokoto, Nasarawa, Niger, Kwara, Kano, Katsina, Kebbi, Kogi, Gombe, Edo, Borno, Bauchi, Adamawa, Abia, Ebonyi and Anambra states. The identified states have not yet reported their IGR figures for Q3 2017.
The NBS, which released an analysis of the IGR in a report titled, Internally Generated Revenue at State Level (Q1-Q3 2017), specifically pointed out that the states generated a total of N149.45billion in Q3 2017.
Out of the total Q3 YTD IGR, Lagos generated the largest chunk of N241.770 billion, representing 51.11 per cent. Ogun followed with an IGR of N56.763 billion, accounting for about 12 per cent of the total while Delta raked in N38.127 billion to represent 8.06 per cent.
Oyo, which generated N16.476 billion trailed alongside Kaduna and Akwa Ibom that realised N15.982 billion and N10.642 billion as IGR in Q3 YTD.
According to the NBS, a shortfall of N334.84billion was recorded as at Q3 2017 when you compared the full year 2016 and Q3 2017 YTD IGR figures of all states.
It explained that states like Bayelsa, Benue, Ekiti, Enugu and Jigawa had already surpassed their total 2016 IGR figures as of Q3 2017.
A cursory look revealed that the full year 2016 state IGR figure of N807.92billion excludes Anambra, Ebonyi and Rivers states that were yet to report on details for either one or all of the last three years, it also noted.
Further analysis showed that, as at half year 2017, total revenue generated by states was put at N396.92 billion as against N392.06 billion. The amount represented an average growth of 1.24 per cent.
NBS stated that, “Twenty-five states are doing better with IGR by Q2 2017 compared to Q2 2016 and this excludes Rivers, Ebonyi and Anambra that have not yet reported IGR details for Q2 2017 and which have not reported details for either one of all of the last three years.”
The NBS also reported that the net FAAC allocation in half year 2017 (N744.4billion) was 187 per cent higher than IGR for same period in Q2 2017 (N396.9billion) excluding IGR for Anambra, Rivers and Ebonyi states.
“If we remove FAAC for these three states without IGR records, then net FAAC allocation by Q2 2017 (N664.8 billion) was 165 per cent higher than total IGR for states with records by Q2 2017.”
The total revenue available to states was put at N1.05trillion, which excluded IGR information for Rivers, Anambra and Ebonyi, the statistics agency stated.
NBS explained that in collaboration with the Joint Tax Board , it computed the states IGR data from official records and submissions by the 36 State Boards of Internal Revenue. These submissions, it added, were then validated and authenticated by the JTB, which is chaired by the Federal Inland Revenue Service and has the National Bureau of Statistics and the 36 State Boards of Internal Revenue as members.
The revenues generated included, MDAs revenues, which relate to revenues generated administratively by State MDAs during the course of providing various services to residents in the state and direct assessment, relating to a form of personal income tax used to assess tax for self employed individuals. Direct assessment may also relate to those imposed on businesses especially (informal) by the state authorities based on the size of their activities.
Besides, the states also collect Pay As You Earn (PAYE), which is a form of personal income tax that refers to tax deducted directly from the wages and salaries of employees operating in the formal sector and road taxes, being daily levies paid by commercial transporters operating within the states as well as other taxes including various taxes such as levies on market traders, land registration and other land related fees, development levies on individuals, pool betting/lottery/gaming fees, stamp duties on individuals etc.