Opinion
Rivers And The Quest For Increased IGR
One topical issue that is currently engaging discussion among most policy formulators and executors in Nigeria is how to increase Internally Generated Revenue (IGR). The need to boost internally generated revenue became imperative, following continuing shrinking of distributable revenue due to the segment of the society from the national consolidated revenue sources.
Experts have attributed this development to the reduction in revenue earnings in the country, due to the on-going global economic crunch which has led to a reduction in the price of crude oil.
The decline in the price and global demands of the commodity by countries has translated into diminishing income for Nigeria which is currently dependant on the exportation of crude oil for foreign exchange earnings.
Worried by this trend and the need to create alternative for revenue generation, most state governments are initiating new revenues for boosting IGR. One of the states, which have made practical commitment towards this initiative in the recent times, is Rivers State.
For some time now, the State government under Chief Nyesom Wike, has introduced new innovation aimed at re-oiling, as well as creating channels for boosting IGR. Making this known during this year’s budget presentation, Governor Wike said his administration planned to raise over N50 billion through IGR this year.
“The total recurrent revenue to be collected is estimated to be N120 million. It wrists of N30.6 billion IGR and N60 billion revenues from the Federation Account allocation”, he explained.
One of the ways of achieving this goal is through the implementation of the revaluation of certificate of occupancy (C of O) of existing landed properties in the state, as part of the initiative to open up a new stream of internally generated revenue (IGR). The move was conceived as avenue to scale up the internal revenue generation capacity of the state which has, in recent times, grew to about N8.7 billion from last year’s mark of N500 million.
The initiative by Governor Wike revealed that all holders of C of Os of landed properties in the state present them to the State Ministry of Lands and Housing for revaluation. On doing this, title holders are expected to meet up their financial obligation to the state in area of ground rents payment which has been in arrears for several years now.
According to records which was made available to newsmen, the introduction of the revaluation of the C of O was one of the measures conceived to further build up the IGR which has increased since the inception of the current administration in May 2015.
At the moment, Rivers State, despite the shortfall from the Federal Allocation, depends hugely on other grants to fund its development programmes and operations. From all indications, IGR has grown to about 85 percent in the last 18 months and experts are of the opinion that the re-introduction of collection of ground rents would tremendously impact on the quest by the government to boost collection.
Commenting on the policy move, Dr. Theophilus Uwakwe Eke, an environmental expert said that Governor Wike is deeply worried over the state’s continued dependence on grants.
“As stated by Governor Wike, the state has conceived several fiscal measures aimed at growing IGR. One of the measures is the revaluation of the C of Os.
“The study conducted by the ministry charged with the preparation of the budget indicates that the option is very viable.
“If well managed, it is capable of raking in billions of naira into the state’s coffers. That is why we are putting in place necessary machinery in motion for its implementation”, he explained.
Speaking further on this development, a university lecturer in the Department of Environmental Sciences of the Rivers State University, Port Harcourt, Dr. T.T Dokubo, disclosed that players in the environment industry in the state are prepared to support government in implementing the programme.
“We in environmental society are sure that the state is going to realize sustainable revenue from the initiative and are ready, if called upon by government, to assist in achieving this noble objective. We made this known to the government recently when we visited the State Commissioner for Lands and Housing. Definitely, the initiative is long overdue and we are deeply happy that finally, the State has embraced the lofty idea”, he noted.
In view of the above, I want to say that the new innovation introduced by the Wike administration to increase the internally generated revenue of the State is a welcome development. The new initiative will certainly boost the State’s economy. It is, therefore, important that all stakeholders, especially holders of C of Os should cooperate with the State government to realise this vision.
Agbo writes from Port Harcourt.
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