Lagos and Ogun have consistently generated more revenue than they were allocated by the Federal Accounts Allocation Committee (FAAC) in the last four years.
This was disclosed in a report by a socioeconomic research firm, SBM intelligence, titled” Taxing Nigeria’s subnational economies to oblivion.” The firm also warned that the current condition of the states’ IGR is not healthy.
According to data from the National Bureau of Statistics, the 36 states of the federation including the federal capital recorded a sum of N849.12 billion as internally generated revenue between January and June 2021, which is 38.5 per cent higher than the N612.87 billion recorded in H1 2020 and 26 per cent higher than N673.82 billion recorded in H2 2020.
Lagos State recorded the highest IGR in the review period with N267.23 billion accounting for 31 per cent of the total IGR recorded in the period under review.
The Federation Accounts Allocation Committee (FAAC), shared the sum of N725.571 billion to the three tiers of government, as federation allocation for the month of March.
States received N227.201 billion, the local government councils got N167.910 billion, while the oil producing states received N53.356 billion as derivation (13 per cent of Mineral Revenue).
The report revealed that “By 2018, Osun State had fallen off the list, as 2019 ” saw a huge positive change as Lagos, Rivers, Ogun and Delta all generated more internal revenue than they were fed by Abuja.
