As the gross federally collected revenue continues to witness continual decline, members of the Federation Account Allocation Committee (FAAC) have initiated moves to boost the Internally Generated Revenue from states.

The move came just as the gross revenue declined by N46.87bn from N633.79bn received in April to N586.92bn.

The Minister of State for Finance, Dr. Yerima Ngama, confirmed the development when he led members of the FAAC on a courtesy visit to the governor of Oyo State, Senator Abiola Ajimobi.

He attributed the decline in revenue to a drop in crude oil export for the month, which resulted from shutdown and disruptions caused by maintenance works at various terminals.

Ngama, while commending the governor, however, called for more portion of the state’s budget to be channelled to infrastructure.

He said, “For the last four months, we have actually started doing something that we called peer comparison and we asked all state commissioners of finance to come and give us the structure of their actual expenditure, and from this, we can see a variety of structures.

“Some states spent 80 per cent of their revenue on recurrent and only 20 per cent on capital, while others do 50 per cent each. But I think we have to look at the Internally Generated Revenue and total resources ratio so that states like Lagos will need to teach us what they are doing to generate a lot.”

But the Kano State Commissioner of Finance, Alhaji Abdullahi Gaya, told newsmen that the state government’s IGR had risen from N400m to N1.3bn monthly.

He gave assurance that the N2bn monthly IGR target set by state would be realised before the end of the year.

He said, “When we came on board, we met a monthly revenue generation in the region of N300m to N400m, but as at now, every month we generate over N1.3bn, before the end of year, we will hit the target of N2bn.”

He said the increase in the state’s IGR had enabled the government to boost infrastructural projects as well as pay salaries.

For instance, he said 66 per cent of the state’s resources had been devoted to capital projects.

Earlier, Ajimobi had called for a gradual devolution of Federal Government’s powers and interest in the economy, adding that this would pave the way for states to play more active roles.

He said, “It is clear that you have the foresight on how you want to operate economically and as much as possible to begin partnership with the private sector.

“I think we should try and avoid involving too much government in all that we do and unleash the potential of Public Private Partnership instead of all this allocation.”

He urged the Federal Government to encourage the states to venture into areas that were hitherto being handled by the FG.