The 36 states received N3.95 trillion as total revenues in 2018 but none of the states could fund their 2018 budget from their total revenue for the year.
A breakdown of the figure shows that N2.849 trillion was from FAAC allocations while N1.103 trillion was internally generated revenue (IGR) by the states.
The total revenues to the states came from disbursements from the Federation Accounts and Allocation Committee (FAAC) and receipts from Internally Generated Revenues (IGR).
NEITI in its Quarterly Review report titled “Insights from states’ 2018 total revenue profiles” noted that the gap between total revenues and budgets ranged between N28 billion in Enugu and N1.2 trillion in Cross River.
The publication looked at revenues to the states against their internally generated revenues, FAAC receipts and the implications on their budgets for the year under review.
According to NEITI, “While total FAAC allocations were N2.849 trillion, total deductions were N355.761 meaning that a total of N2.494 trillion represented actual net FAAC disbursements to the states. In 2018, after deductions, the combined total (net) revenue of all states was N3.597 trillion”.
The deductions, the review explained were because of external and domestic debts including standing orders hanging on the neck of the affected states.
“The fact that states had significantly lower total revenues than budgets can lead to two scenarios. It is either that states will not fully implement their budgets, or they will resort to borrowing to finance their budgets”, NEITI stated.
The report shows that the South South zone had the highest combined revenue of N1.102 trillion, followed by the South West zone with N887.8 billion.
The North West and North Central had the third and fourth highest revenues of N546.5 billion and N378.7billion.
while the North East and South East zones had N351.5 billion and N340.1billion respectively.
The review highlighted that the total revenue for South South (N1.10trillion) exceeded the combined revenues for the North Central, North East and South East, which is N1.07trillion.
Similarly, the total revenue of Lagos State (N501.2 billion) exceeded total revenue of each of three zones: North Central (N378.7 billion), North East (N351.5 billion), and South East (N340.1 billion).
