Economy
Lagos Generates More IGR than 30 States Combined—Report
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.
By Modupe Gbadeyanka
Nigeria’s First Lady, Mrs Oluremi Tinubu, has given Nigerians business advice that may not involve a lot of money to start.
Speaking with newsmen recently, the wife of President Bola Tinubu said businesses like akara (fried bean cake), kulikuli (a crunchy snack from roasted peanuts or groundnuts) and roasted corn can be set up without breaking the bank.
She disclosed that to support her husband’s Renewed Hope agenda, she has provided funding packages to traders and others to the tune of N3.5 billion.
“To start akara business doesn’t take a lot of money. To start roasting corn and kuli-kuli doesn’t take much. We didn’t give them a loan; we gave it to them as a grant,” she stated.
She further said, “We’ve encouraged Nigerians as best as we could, what is within our hands, I have given, and I keep giving. Those are the things we’ve done.”
“I remember giving for TB (tuberculosis) when I heard of many TB cases; I gave N2 billion, to breast cancer, I gave N1 billion, and to [tackle] malnutrition, I gave N500 million.
“These are the things we’ve been doing to assist the government. So, we’ve had impact in agriculture, social investment, education (as scholarship and ICT training) and others. We are still open to doing more,” she disclosed.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rallied by 1.70 per cent on Thursday, June 25, after three price gainers overpowered the two price losers recorded at the close of business.
Consequently, the market capitalisation of the trading platform increased by N43.79 billion to N2.618 trillion from N2.574 trillion, and the NASD Security Index (NSI) improved by 72.96 points to close at 4,362.32 points, in contrast to Wednesday’s 4,289.36 points.
Yesterday, the price advancers were led by Nipco Plc, which chalked up N31.79 to close at N349.76 per unit versus the preceding day’s N317.97 per unit. Okitipupa Plc gained N18.00 to end at N298.00 per share versus the previous session’s N280.00 per share, and Central Securities Clearing System (CSCS) Plc went up by N7.11 to N86.79 per unit from N79.68 per unit.
On the flip side, Nitrox Industrial Gases Plc crumbled by 32 Kobo to close at N21.09 per share compared with the N21.41 per share it closed at midweek, and Food Concepts Plc depreciated by 25 Kobo to N2.51 per unit from N2.76 per unit.
During the session, the value of securities traded by investors went down by 86.7 per cent to N10.9 million from the preceding session’s N82.9 million, and the volume of securities dropped 84.9 per cent to 10.9 million units from the previous 82.9 million, while the number of deals grew by 84.2 per cent to 35 deals from 19 deals.
At the close of trades, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 68.4 million units exchanged for N4.7 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited further suffered a 0.64 per cent decline on Thursday as the bears tightened their grip on the bourse.
For the second straight session, all the key sectors of Customs Street pointed south, with the energy counter down by 5.22 per cent. The insurance index slumped by 2.59 per cent, the banking space depreciated by 0.28 per cent, and the consumer goods segment moderated by 0.06 per cent, while the industrial goods sector was flat, though with a marginal fall.
As a result, the All-Share Index (ASI) contracted by 1,493.71 points to 233,580.83 points from 235,074.54 points, and the market capitalisation retreated by N959 billion to N149.888 trillion from N150.847 trillion.
Investor sentiment remained weak after a negative market breadth index, as there were 21 price gainers and 34 price losers.
Aradel and Deap Capital went down by 10.00 per cent each to N1,575.00 and N4.05, respectively. Trans-Nationwide Express fell by 9.90 per cent to N3.64, Regency Alliance slipped by 9.57 per cent to N85 Kobo, and C&I Leasing dipped by 9.48 per cent to N28.12.
Conversely, Red Star Express grew by 9.60 per cent to N24.55, Legend Internet expanded by 9.09 per cent to N6.00, Neimeth appreciated by 7.10 per cent to N8.30, Abbey Mortgage Bank rose by 5.45 per cent to N8.70, and Ellah Lakes improved by 4.65 per cent to N9.00.
Yesterday, market participants traded 393.7 million equities valued at N19.2 billion in 45,813 deals compared with the 488.1 million equities worth N20.9 billion transacted in 46,239 deals recorded a day earlier, implying a shortfall in the trading volume, value, and number of deals by 19.34 per cent, 8.13 per cent, and 0.92 per cent, respectively.
The most active stock for the session was Access Holdings with a turnover of 39.1 million units worth N896.2 million, Chams traded 24.5 million units valued at N96.5 million, Fidelity Bank sold 24.1 million units for N436.9 million, Sterling Holdings exchanged 23.8 million units valued at N182.2 million, and Zenith Bank transacted 18.9 million units worth N2.1 billion.
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