News
13 States Lack Revenue Capacity To Fund Recurrent Expenditure, BudgIT Alerts …As Rivers Tops 2020 Fiscal Index
No fewer than 13 states in the country lacked the revenue capacity to fund their recurrent revenue in 2019, the BudgIT’s State of the States Report, 2020, has revealed.
The 13 states, according to the report, are Lagos, Oyo, Kogi, Osun, Ekiti, Plateau, Adamawa, Bauchi, Gombe, Cross River, Benue, Taraba and Abia.
The report noted that from analysis, the total revenue of the 13 states was not enough to fund their recurrent expenditure obligations, including salaries, overheads, debt service obligations, and meet loan repayment schedules that were due in 2019.
“The worst hit of these 13 states are Lagos, Oyo, Kogi, Osun and Ekiti. Others are Plateau, Adamawa, Bauchi, Gombe, Cross River, Benue, Taraba and Abia,” the report disclosed.
The report observed that the development could indicate early signs of distress, particularly for states which have very low revenue generation capacities.
“Without cutting down certain components of their recurrent expenditure or radically growing their internally generated revenue (IGR), the affected states will have to borrow to fund parts of their recurrent expenditure, all of their capital expenditure, and also borrow to pay back old loans or service old debts as was observed from their 2019 financial statements,” the report warned.
BudgIT also observed that the total debt for all 36 states surged by 162.87 per cent or N3.34trillion, from N2.05trillion in 2014 to N5.39trillion in 2019, with 10 states accounting for approximately half or N1.68trillion of the increase.
The 10 states that accounted for N1.68trillion of the debt increase are Lagos, Rivers, Akwa Ibom, Imo, Kogi, Edo, Osun, Cross River, Kaduna and Adamawa.
ýNoting that the fall in oil prices has led to a decline in federal revenue, BudgIT urged the states to grow their internally generated revenue to enable them sustain growth.
The report indicated that Lagos, Ogun and Rivers will be least affected by dwindling federal revenue due to their higher IGR profiles, while Bayelsa, Borno and Katsina would be worst hit.
It added that Rivers State occupied the number one position on BudgIT’s 2020 Fiscal Sustainability Index as it was able to meet its recurrent expenditure with only internally generated revenue (IGR) and Value Added Tax (VAT).
News
198 UNIBEN Students Bag First Class
News
Bayelsa Education Fund, British Council trains tra 1,000 teachers
News
RSG INAUGURATES ARMED FORCES REMEMBRANCE DAY COMMITTEE
The Rivers State Government has inaugurated a Central Planning Committee to organize the celebration of the 2026 Armed Forces Remembrance Day (AFRD) in the State.
The committee was formally inaugurated by the Secretary to the State Government, Dr. Benibo Anabraba in Port Harcourt, last Thursday.
Dr Anabraba who also serves as Chairman of the Committee
highlighted the State Government’s deep appreciation for the sacrifices of Nigeria’s fallen heroes who laid down their lives for the nation’s peace and unity.
“These heroes have given their lives for the security and peace of our nation and deserve to be celebrated. The Armed Forces Remembrance Day is an opportunity to show our gratitude for their sacrifice,” he said.
Dr. Anabraba further extended recognition to all Security Agencies in the State, emphasizing the importance of the event in appreciating their contributions to national security and sovereignty.
The annual Armed Forces Remembrance Day, observed on January 15 across the country is dedicated to remember Nigeria’s departed soldiers and honouring the nation’s veterans.
