News
Top 6 States that Can Confidently Survive without Federal Allocation
The Annual State Viability Index (ASVI) published by Economic Confidential has revealed some Nigerian states that can survive without the monthly federal allocations.
According to The Cable, the ASVI measured the viability index of states using each state’s Internally Generated Revenue (IGR) as a percentage of its federal accounts allocation for the year.
Lagos, Rivers, Ogun, Kaduna, Oyo and Anambra can survive without federal allocation.
We gathered that states with an IGR of less than 10% of their total receipts from the federal allocations are considered insolvent.
Below are states listed as those that can survive without federal allocation: Lagos Rivers, Ogun, Kaduna, Oyo and Anambra.
According to the report, states listed here can survive without federal allocation because they generate high revenues locally. For instance, Lagos in 2020 collected a federal allocation of N299 billion but generated N418 billion locally (139%)
Also, Rivers state which generated an IGR of N117 billion collected N198 billion as federal allocation (58%).
As for Ogun, the southwestern state made N50 billion IGR compared to the federal allocation of N88 billion (57%) it received.
Kaduna state generated N50 billion locally while its federal allocation was N124 billion (40%).
READ: Buhari to depart Abuja for Ethiopia Sunday
Oyo state with an IGR of N38 billion got N127 billion as federal allocation (29.7%) while Anambra generated N28 billion compared to its federal allocation of N94 billion (29.6%).
There has been moves by some states like Lagos and Rivers State to collect Value Added Tax (VAT) instead of the Federal Inland Revenue Service (FIRS).
Meanwhile, the 36 state governments have sued the federal government over the proceeds of the stamp duties collected between 2015 and 2020 which they put at N176 billion. The state governments demanded a refund of the proceeds in a suit filed before the Supreme Court on Thursday, September 9.
READ: Many feared missing as jetty collapses in Rivers
The states through their attorneys-general asked the apex court to determine whether or not they are the sole authority to administer and collect stamp duties within their respective states.
In another report, the Nigerian Railway Corporation (NRC) made N1.08 billion in three months as more Nigerians turn to train transport amid rising security in the country.
The amount was generated in the second quarter, which falls between April to June. During this period, a total number of 565,385 passengers was recorded by NRC. It was gathered that the railway traffic rise rose by 422.3% when the second quarter of both last year (108,238 passengers) and 2021 are compared; this means 457,147 passengers switched to railway transport within one year.
