Economy

Lagos Generates More IGR than 30 States Combined—Report

Published

8 years ago

30/04/2018

By Dipo Olowookere

A new report released by Economic Confidential has revealed that Lagos State generates more Internally Generated Revenue (IGR) than 30 of the 36 states in the federation combined.

The report by this economic intelligence magazine indicates that the IGR of Lagos State of N333 billion is higher than that of 30 States put together whose IGR are extremely low and poor compared to their allocations from the Federation Account.

The states with impressive over 30 percent IGR apart from Lagos are Ogun, Rivers, Edo, Kwara, Enugu and Kano States who generated N607 billion in total, while the remaining states merely generated a total of N327 billion in 2017.

In its Annual States Viability Index (ASVI), the reputable journal also said only 17 states are insolvent as their IGRs in 2017 were far below 10 percent of their receipts from the Federation Account Allocations (FAA) in the same year.

The index, carefully and painstakingly computed, proved that without the monthly disbursement from the Federation Account Allocation Committee (FAAC), many states remain unviable, and cannot survive without the federally collected revenue, mostly from the oil sector.

The IGR are generated by states through Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDAs).

Recently, the magazine published the total allocations received by each state in Nigeria from FAA from January to December 2017.

The latest report on IGR revealed that only Lagos and Ogun States generated more revenue than their allocations from the Federation Account by 165 percent and 107 percent respectively and no any other state has up to 100 percent of IGR to the federal largesse.

The IGR of the 36 states of the federation totalled N931 billion in 2017 as compared to N801.95 billion in 2016, an increase of N130 billion.

While the report provides shocking discoveries, the states with less than 10 percent IGR have jumped to 17 from 14 states in the previous year 2016.

The poor states may not stay afloat outside FAA due to socio-political crises including insurgency, militancy, armed-banditry and herdsmen attacks. Other states lack foresight in revenue generation drive coupled with arm-chair governance.

The states that may not survive without the Federation Account due to poor internal revenue generation are Bauchi which realized a meagre N4.3 billion compared with a total of N85 billion it received from FAA in 2017 representing about 5 percent; Yobe with IGR of N3.59 billion compared with FAA of N67 billion representing 5.33 percent; Borno N4.9 billion compared with FAA of N92 billion representing 5.41 percent; Kebbi with IGR of N4.39 billion compared with N76 billion of FAA representing 5.77 percent and Katsina with IGR of N6bn compared to N103 billion of FAA representing 5.8 percent within the period under review.

Other poor internal revenue earners are Niger which generated N6.5 billion compared to FAA of N87 billion representing 7.43 percent; Jigawa N6.6 billion compared to FAA of N85 billion representing 7.75 percent; Imo N6.8 billion compared with FAA of N85 billion representing 8.1 percent and Akwa Ibom N15 billion compared with FAA of N197 billion representing 8.06 percent, Ekiti N4.9 billion compared with FAA of N59 billion representing 8.38 percent; Osun N6.4 billion compared with FAA of N76 billion representing 8.45 percent, Adamawa N6.2 billion compared with FAA of N72.9 billion representing 8.49 percent, Taraba N5.7 billion compared with FAA of N66 billion representing 8.70 percent and Ebonyi N5.1 billion compared with FAA of N57.8 billion representing 8 percent.

Meanwhile, Lagos State remained steadfast in its number one position in IGR with a total revenue generation of N333 billion compared with FAA of N201 billion which translates to 165 percent in the 12 months of 2017.

It was followed by Ogun State which generated IGR of N74.83 billion compared with FAA of N69 billion representing 107 percent.

Others with impressive IGR include Rivers with N89 billion compared with FAA of N178 billion representing 50 percent; Edo with IGR of N25 billion compared with FAA of N75 billion representing 33 percent. Kwara State however with a low receipt from the Federation Account has greatly improved in its IGR of N19 billion compared with FAA of N61 billion representing 32 percent while Enugu with IGR of N22 billion compared with FAA of N69 billion representing 32 percent.

Kano generated N42 billion compared with FAA of N143 billion representing 30 percent while Delta State earned N51 billion IGR against FAA of N175 billion representing 29 percent.

The Economic Confidential ASVI further showed that only three states in the entire Northern region have IGR above 20 percent. They are Kwara, Kano, and Kaduna States.

Meanwhile, 10 states in the South recorded over 20 percent IGR in 2017. They are Lagos, Ogun, Rivers, Edo, Enugu, Delta, Cross River, Anambra, Oyo and Abia States.

The states with the poorest IGR of less than 10 percent in the South are Bayelsa, Ebonyi, Osun, Ekiti, Akwa-Ibom and Imo States while in the North; Gombe, Zamfara, Taraba, Adamawa, Jigawa, Niger, Katsina, Kebbi, Borno, Yobe and Bauchi States.

Meanwhile, the IGR of the respective states can improve through aggressive diversification of the economy to productive sectors rather than relying on the monthly Federation Account revenues that largely come from the oil sector.

Economy

Nigeria Investment Fund, Japan Unveil $50m Innovation Fund for Startups

Published

23 minutes ago

23/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The Nigeria Investment Authority (NSIA) and Japan International Cooperation Agency (JICA) have finalised agreements to launch a $50 Sovereignmillion impact innovation fund aimed at strengthening the Nigerian start-up ecosystem.

The fund is expected to provide patient capital to pre-seed, seed, and early-stage startups addressing critical social challenges in sectors such as agriculture, healthcare, education, energy, waste and water management.

JICA will provide $14 million in grant support, while NSIA contributes up to $20 million to match the grant.

Structured as an onshore public fund, the initiative combines financial support with technical assistance to help startups refine products, scale operations, and expand into new markets.

The fund is expected to create jobs, improve livelihoods, and contribute to sustainable economic development across Nigeria.

Speaking at the agreement signing ceremony between NSIA and JICA at the Ministry of Budget and Economic Planning, Mr Aminu Umar-Sadiq, the chief executive of NSIA, said: “The Fund represents a transformative step for Nigeria’s startup ecosystem. By providing early-stage ventures in high-impact sectors with the capital and support they need to grow, we are enabling innovators to tackle some of Nigeria’s most pressing challenges. Our collaboration with JICA underscores our commitment to entrepreneurship, inclusive growth, and sustainable development.”

Preparations are underway to operationalise the Fund and develop a pipeline of high-impact startups ready for investment. NSIA remains committed to advancing socio-economic development through strategic partnerships that scale impact, expand innovative solutions, and unlock access to capital.

On his part, the Japanese Ambassador to Nigeria, Mr Suzuki Hideo, said, “The Government of Japan hopes this new project will take root in Nigeria and bear fruit swiftly.”

Economy

Seven Price Gainers Boost NASD OTC Bourse by 2.19%

Published

2 days ago

21/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Seven price gainers flipped recent declines at the NASD Over-the-Counter (OTC) Securities Exchange, raising the alternative stock market by 2.19 per cent on Friday.

According to data, the market capitalisation added N51.24 billion to end N2.389 trillion compared with the previous day’s N2.338 trillion, while the NASD Unlisted Security Index (NSI) climbed 85.65 points to close at 3,994.32 points, in contrast to the 3,908.67 points it ended a day earlier.

Business Post reports that the advancers were led by MRS Oil Plc, which improved its value by N13.00 to N200.00 per share from N187.00 per share, FrieslandCampina Wamco Nigeria Plc gained N7.40 to settle at N91.55 per unit versus the previous day’s N84.15 per unit, Central Securities Clearing System (CSCS) Plc appreciated by N6.08 to N71.00 per share from N64.92 per share, Afriland Properties Plc added 66 Kobo to finish at N17.17 per unit versus N16.51 per unit, IPWA Plc rose 37 Kobo to N4.15 per share from N3.78 per share, First Trust Mortgage Bank Plc grew by 11 Kobo to N1.20 per unit from N1.09 per unit, and Food Concepts Plc went up by 10obo to N3.70 per share from N3.60 per share.

On the flip side, there were two price losers led by Geo-Fluids Plc, which depreciated by 28 Kobo to N3.32 per unit from N3.60 per unit, and Industrial and General Insurance (IGI) Plc dropped 5 Kobo to sell at 45 Kobo per share from 50 Kobo per share.

Yesterday, the volume of trades went down by 92.0 per cent to 3.7 million units from 45.8 million units, the value of transactions fell by 59.4 per cent to N84.5 million from N208.2 million, while the number of deals went up by 7.7 per cent to 42 deals from 39 deals.

CSCS Plc remained the most traded stock by value (year-to-date) with 32.6 million units exchanged for N1.9 billion, trailed by Geo-Fluids Plc with 119.6 million units valued at N470.3 million, and Resourcery Plc with 1.05 billion units traded at N408.6 million.

Resourcery Plc closed the day as the most traded stock by volume (year-to-date) with 1.05 billion units sold for N408.7 million, followed by Geo-Fluids Plc with 119.6 million units worth N470.3 million, and CSCS Plc with 32.6 million units worth N1.9 billion.

Economy

FX Demand Worries Weaken Naira to N1,346/$1 at Official Market

Published

2 days ago

21/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira weakened further against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, February 20, by N4.97 or 0.37 per cent to N1,346.32/$1 from the N1,341.35/$1 it was transacted on Thursday.

Heightened FX demand tilted the market toward the downside yesterday, exerting upward pressure on rates despite efforts by the Central Bank of Nigeria (CBN) to stabilise the foreign exchange market.

Also in the official market, the domestic currency depreciated against the Pound Sterling during the session by N9.39 to sell for N1,815.25/£1 versus the previous day’s N1,805.86/£1, and lost N7.33 against the Euro to close at N1,584.62/€1 compared with the preceding session’s N1,577.29/€1.

The story was not different for the Nigerian Naira at the GTBank FX desk, where it depleted against the Dollar by N7 on Friday to quote at N1,356/$1 versus the N1,349/$1 it was sold a day earlier, but remained unchanged in the black market at N1,370/$1.

It was observed that risky sentiment among Foreign Portfolio Investors (FPIs) contributed to the FX market, amid fears of hot money flight due to capital gains tax and other factors.

As for the cryptocurrency market, it was mostly green yesterday in reaction to a Supreme Court verdict dismissing a fresh 10 per cent global levy by President Donald Trump.

The apex court on Friday described Mr Trump’s global tariff rollout as illegal. The decision did not clarify what should happen to tariff revenue already collected, and it doesn’t necessarily spell the end of the trade agenda, with multiple legal and executive avenues still available.

Litecoin (LTC) grew 2.7 per cent to $55.00, Cardano (ADA) appreciated 2.6 per cent to trade at $0.2815, Binance Coin (BNB) expanded by 2.6 per cent to $627.19, Dogecoin (DOGE) recouped 1.3 per cent to quote at $0.1, Ripple (XRP) jumped 0.7 per cent to $1.43, Solana (SOL) improved by 0.5 per cent to $84.15, and Ethereum (ETH) soared 0.1 per cent to $1,962.78.

However, Bitcoin (BTC) lost 0.2 per cent to sell for $67,850.49, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.