In spite of efforts by various State Governments in Nigeria to grow alternative sources of revenue, aside from the monthly Federation Accounts Allocation Committee (FAAC) earnings, the total Internally Generated Revenue (IGR) of the 36 States of the federation and the Federal Capital Territory (FCT) shrunk by 2.1 per cent, representing N28.15 billion between 2019 and 2020.
However, a total of 34 per cent annual revenues growth rate was recorded by the Ministries, Departments and Agencies (MDA) between 2020 and 2021, while other Taxes and Direct Assessments recorded the highest growth year-on-year at 82 per cent, 74 per cent, and 71 per cent respectively.
Improving Internally Generated Revenue (IGR): Trend and Emerging Reforms.
This was disclosed by Mr Lanre Ajogbasile, Senior Programme Manager, Nigeria Governors’ Forum (NGF) at a workshop in Abuja over the weekend by the States Fiscal Transparency, Accountability, and Sustainability Technical Assistance (SFTAS) Project.
According to him, some states that showed remarkable growth included Sokoto State, which moved from N7.5 million to N519.5 million in Direct Assessment; Niger State – N1 million to N2.07 billion in MDA revenue; Jigawa State – N1.4 billion to N3.8 billion; Kogi State – N444.8 million to N3.6 billion in Other Taxes; Osun State – N53.3 million to N253.7 million in other taxes and the FCT – N2.6 billion to N19.4 billion in Other Taxes.
ALSO READ FROM NIGERIAN TRIBUNE
- I Already Prepared My Grave —Alaafin
- Dubai Sex Video: NAPSS Raises Concerns Over Closure Of Chrisland Schools
Mr Ajogbasile pointed out that over the years, states have made steady progress in reforming the tax environment and system to improve their IGR by adopting the Treasury Single Account (TSA) and cashless policy.
Other measures the Stated adopted include “improved collaboration between the SIRSs and identity management ministries, departments and agencies (Through the Joint Tax Board), the establishment of Joint State Revenue Committees to improve collaboration between the State, Local Governments and in-State revenue generating MDAs.”
Others are that “SIRSs are being granted financial and administrative autonomy to enable increased capacity in delivering their mandate, and increase in technology adoption for revenue monitoring and collections – enabling online payment of taxes, fees, levies, and charges.”
He attributed the poor IGR generation to the fact that Nigeria is still recovering from a combination of adverse fiscal and macroeconomic conditions that had exerted strong pressures on the fiscal sustainability of the national and sub-national governments.
How Workplace Sexual Harassment Forces Many Out Of Their Dream Jobs
States, FCT total IGR shrunk by N28.15bn, says SFTAS
and then