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States got N3.9tr revenue last year, says NEITI

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The 36 states got N3.95 trillion as revenues last year, the Nigeria Extractive Industries Transparency Initiative (NEITI) Quarterly Review showed on Wednesday.

It, however, claimed none of the states could fund their budget from their total revenues for the year.

The gap between total revenues and budgets ranged between N28 billion in Enugu and N1.2 trillion in Cross River, the agency said.

The total revenues to the states came from disbursements from the Federation Accounts and Allocation Committee (FAAC) and receipts from internally generated revenues (IGR).

A statement from the NEITI on the breakdown of the figures showed that N2.849 trillion was from FAAC allocations while N1.103 trillion was states’ IGR.

In the report titled: “Insights from States’ 2018 Total Revenue Profiles’, NEITI looked at revenues to the states against their IGR, FAAC receipts and the implications on their budgets for the year under review.

“While total FAAC allocations were N2.849 trillion, total deductions were N355.761, indicating 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 NEITI said.

The deductions, it explained, were because of external and domestic debts, including standing orders hanging on the neck of the affected states.

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The analysis conducted using data obtained from the National Bureau of Statistics (NBS), Office of the Accountant General of the Federation and the Fiscal Disbursement Unit of NEITI showed that Lagos State had the highest revenue of N501 billion. Osun had the lowest with N33 billion.

This showed that Lagos revenue was higher than that of Osun by 1,518 per cent.

The report did a comparative analysis of revenues by the six geo-political zones, which showed that the Southsouth zone had the highest revenue of N1.102 trillion. It was followed by the Southwest with N887.8billion. The Northwest and Northcentral had the third and fourth highest revenues of N546.5 billion and N378.7 billion. The Northeast and Southeast had N351.5billion and N340.1 billion apiece.

The review said the revenue for Southsouth (N1.10 trillion) exceeded the combined revenues for the Northcentral, Northeast and Southeast, which is N1.07 trillion.

Similarly, the total revenue of Lagos (N501.2 billion) exceeded total revenue of each of three zones: Northcentral (N378.7 billion), Northeast (N351.5 billion), and Southeast (N340.1 billion).

On IGR, the NEITI review explained: “Only four states had IGR above N50 billion, including Delta, Lagos, Ogun and Rivers states.

On the other hand, 13 states had IGR below N10 billion, including Adamawa, Bauchi, Borno, Ebonyi, Ekiti, Gombe, Jigawa, Katsina, Kebbi, Nasarawa, Taraba, Yobe, and Zamfara.

“In addition, 11 states had IGR between N10 billion and N20 billion: Abia, Anambra, Bayelsa, Benue, Cross River, Imo, Kogi, Niger, Osun, Plateau, and Sokoto states.

Eight states had IGR between N20 billion and N50 billion: Akwa Ibom, Edo, Enugu, Kaduna, Kano, Kwara, Ondo and Oyo.”

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