States revenue can’t  fund its budget – NEITI

None of the 36 states of the federation could fund their budgets from total revenue received in 2018, the Nigerian Extractive Industries Transparency Initiative (NEITI) has reported.

The transparency agency said, in the latest edition of its Quarterly Review, that the total revenues received by the states for the year stood at about N3.95 trillion

In the publication titled: “Insights from states’ 2018 total revenue profiles”, NEITI said the gap between total revenues and budgets among the states ranged between N28 billion and N1.2 trillion.

The publication compared the revenues received by the states against their internally generated revenues (IGRs), Federation Accounts and Allocation Committee (FAAC) receipts and the implications on their budgets for the year under review.

While Enugu State’s budget recorded the least deficit, the Cross River State’s N1.3 trillion ‘Budget of Kinetic Crystallisation’ recorded the highest deficit.

The report said total revenues to all the states came from federal allocations the as well as internally generated revenue.

Details of the revenue receipts showed that out of a total N3.9 trillion collected during the year, about N2.8 trillion was from FAAC allocations, while N1.1 trillion was from IGR by the states.

Total deductions from FAAC allocation was about N355.8 billion bringing the actual net FAAC disbursements to the states during the year to about N2.5 trillion.

The report said the deductions were due to external and domestic debts by the states, including outstanding standing orders against them.

Further analysis based on data obtained from the National Bureau of Statistics, Office of the Accountant General of the Federation and the Fiscal Disbursement Unit of NEITI revealed that Lagos State had the highest revenue receipts of N501 billion. Osun had the lowest (N33billion).

The review showed that Lagos State’s revenue was higher than Osun State’s by over 1,518 per cent.

A comparative analysis of revenues by the six geo-political zones showed the South-south zone recorded the highest combined revenue of N1.1 trillion, followed by the South-west zone (N887.8billion) and the North-west (N546.5 billion)

The North-central region came fourth (N378.7billion), followed by North-east and South-east zones with N351.5 billion and N340.1 billion respectively.