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

FrieslandCampina Wamco, Three Others Raise NASD OTC Exchange by 1.41%

Published

13 hours ago

16/05/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 1.41 per cent on Friday, May 15, supported by four securities on the platform.

During the session, FrieslandCampina Wamco Plc added N14.24 to its share price to sell for N159.00 per unit, in contrast to the previous day’s N144.76 per unit.

Further, Central Securities and Clearing System (CSCS) Plc appreciated by N1.34 to N72.34 per share from N71.00 per share, Geo-Fluids Plc improved its price by 4 Kobo to N2.94 per unit from N2.90 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to trade at 61 Kobo per share compared with Thursday’s closing price of 60 Kobo per share.

As a result, the NASD Unlisted Security Index (NSI) rose by 58.20 points to 4,188.41 points from 4,130.21 points, and the market capitalisation soared by N34.82 billion to N2.506 trillion from N2.471 trillion on Thursday.

During the session, the volume of trades went up by 180.8 per cent to 1.2 million units from 417,349 units, and the value of transactions increased by 29.8 per cent to N29.8 million from N23.2 million, while the number of deals fell by 22.6 per cent to 24 deals from 31 deals.

Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units valued at N1.9 billion.

GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.

Economy

Profit-taking Sinks Nigeria’s Equity Market by 0.76% as Bears Take Control

Published

13 hours ago

16/05/2026

Dipo Olowookere

By Dipo Olowookere

The bears overpowered the Nigerian Exchange (NGX) Limited on Friday, sinking it further by 0.76 per cent when the closing gong was struck by 4 pm.

The nation’s flagship equity market was under selling pressure during the session, as investors booked profits after the shares witnessed price appreciation in the past trading sessions.

The energy sector was the most impacted, as it shed 4.43 per cent. The consumer goods index declined by 0.90 per cent, the banking counter decreased by 0.15 per cent, and the industrial goods sector lost 0.08 per cent, while the insurance counter gained 2.42 per cent, which was not enough to salvage the situation.

Consequently, the All-Share Index (ASI) contracted by 1,912.19 points to 250,330.92 points from 252,243.11 points, and the market capitalisation moderated by 1.225 trillion to N160.444 trillion from N161.669 trillion.

Zichis was the worst-performing stock for the session after it gave up 9.97 per cent to close at N29.43, FTN Cocoa slipped by 9.95 per cent to N8.96, The Initiates slumped by 9.90 per cent to N32.30, LivingTrust Mortgage Bank tumbled by 9.88 per cent to N3.83, and International Energy Insurance dropped 9.71 per cent to trade at N2.79.

The best-performing stock was ABC Transport, which grew by 10.00 per cent to N6.27. May and Baker also appreciated by 10.00 per cent to N47.30, SCOA Nigeria surged by 9.98 per cent to N33.05, Trans-Nationwide Express expanded by 9.97 per cent to N7.06, and DAAR Communications jumped 9.76 per cent to N2.25.

Yesterday, investors traded 1.1 billion shares worth N44.3 billion in 65,744 deals compared with the 1.0 billion shares valued at N41.6 billion transacted in 74,822 deals a day earlier. This indicated a dip in the number of deals by 12.13 per cent, and a rise in the trading volume and value by 10.00 per cent and 6.49 per cent, respectively.

Chams was the busiest equity for the day, with 328.5 million units sold for N1.1 billion. UBA traded 61.6 million units worth N2.7 billion, First Holdco transacted 58.7 million units valued at N4.2 billion, Secure Electronic Technology exchanged 51.9 million units worth N45.0 million, and Access Holdings traded 51.8 million units valued at N1.3 billion.

Economy

Naira Weakens to N1,371/$1 at Official Market

Published

13 hours ago

16/05/2026

Adedapo Adesanya

By Adedapo Adesanya

The last trading session of the week at the Nigerian Autonomous Foreign Exchange Market (NAFEX) ended on a negative note for the Naira on Friday, May 15, as it lost N15 Kobo or 0.1 per cent against the Dollar to trade at N1,371.04/$1 compared with the previous day’s N1,370.89/$1.

However, it further appreciated against the Pound Sterling in the same market segment yesterday by N20.77 to close at N1,830.61/£1 versus Thursday’s value of N1,851.38/£1, and gained N7.91 against the Euro to settle at N1,595.07/€1 versus N1,602.98/€1.

At the GTBank FX desk, the Naira lost N2 against the US Dollar during the session to sell at N1,383/$1 compared with the preceding session’s N1,381/$1, and at the black market, it remained unchanged at N1,385/$1.

The Naira is forecast to be broadly stable, supported by Dollar sales by the Central Bank of Nigeria (CBN) amid steady, higher oil receipts, with the ‌market settling ⁠into a balance.

Policy direction is also expected to give the market some boost as the CBN said the new edition of the FX market guidelines will deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.

According to the Governor of the CBN, Mr Yemi Cardoso, the update is due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework. According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.

Meanwhile, the cryptocurrency market plunged into the red zone as rising bond yields hit risk assets across markets, while traders are increasingly betting the Federal Reserve may need to raise rates again. Rising energy prices and resurging inflation could force central banks back into tightening mode.

Cardano (ADA) shrank by 4.4 per cent to $0.2557, Dogecoin (DOGE) slid by 3.7 per cent to $0.1104, Ripple (XRP) depreciated by 3.5 per cent to $1.41, Solana (SOL) crashed by 3.5 per cent to $87.81, and Binance Coin (BNB) slumped by 3.4 per cent to $659.64.

Further, Bitcoin (BTC) declined by 2.6 per cent to $78,547.49, Ethereum (ETH) lost 2.1 per cent to quote at $2,209.19, and TRON (TRX) tumbled by 0.7 per cent to $0.3509, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.