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Rivers Tops 2021 Fiscal Performance Ranking

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Rivers State has grossed the top position in the 2021 Fiscal Performance Ranking, beating 35 others states and the Federal Capital Territory (FCT) in the State of States 2021 BudgIT Report.
A close look at the National Fiscal Outlook shows that Rivers State once again topped the overall 2021 Fiscal Performance Ranking despite COVID-19 induced fiscal shocks to its IGR, indicating that the fiscal fundamentals of the state, compared to other states, are more prudently managed.
Two states made it, as new entrants, to the Top 5 category in the overall 2021 ranking – Ebonyi State emerged in second position, up from sixth position in 2020, and Kebbi State emerged in fifth position, up from 11th position in 2020.
The entrance of Ebonyi and Kebbi states into the Top 5 category was driven largely by growth in both states’ IGR as recorded by the National Bureau of Statistics (NBS).
In the 2021 Performance Ranking, two states dropped out of the Top 5 in overall ranking; Ogun State (now 19th) and Kano State (now 22nd), due to a sharp decline in their IGR in 2020.
A closer look at the report shows that the Top 5 States are Rivers (1), Ebonyi (2), Anambra (3), Lagos (4) and Kebbi (5), while the Bottom 5 are Bayelsa (36), Taraba (35), Benue (34), Katsina (33) and Adamawa (32).
The rest of the states are Kaduna (6), Gombe (7), Cross River (8), Edo (9), Kwara (10), Zamfara (11), Sokoto (12), Osun (13), Enugu (14), Abia (15), Nasarawa (16), Borno (17)and Plateau (18).
Others include Ogun (19), Imo ranked 20, Yobe in 21st position, Kano (22), Oyo (23), Akwa Ibom (24), Jigawa (25), Niger (26), Bauchi (27), Kogi (28), Ekiti (29), Ondo (30), and an oil and gas-producing state – Delta- at 31st position.
In fact, three oil and gas producing states – Bayelsa, Delta and Ondo – are in the Bottom 7 of the 2021 Fiscal Performance Ranking, showing shamefully frivolous management of scarce resources accruing to the states in the year under review.
In the States’ Comparative Viability Index, only three states in the country can meet their operating expenses obligations with a combination of their IGR and Value Added TAX (VAT) as measured in BudgIT’s States’ Performance Index Ranking: Lagos, Rivers and Anambra.
The States Performance Index ranked Lagos tops with a score of 0.70, Rivers second with a score of 0.81, Anambra third with a score of 0.99, Ebonyi fourth with a score of 1.08, and Cross River fifth with 1.21 score.
Kaduna scored 1.22 to emerge sixth, Kebbi scored 1.26 to emerge seventh, Osun scored 1.36 to rank ninth, Zamfara scored 1.45 to rank 10th, Plateau scored 1.48 to emerge 11th, Gombe scored 1.49 to rank 12th while Edo scored 1.54 to emerge 13th in the ranking.
Kwara ranked 14th with a scored 1.55, Enugu ranked 15th with a score of 1.66, Oyo ranked 16th with a score of 1.66, Sokoto ranked 17th with a score of 1.72, Imo ranked 18th with a score 1.76, Abia 19th on 1.78 score, Kano 20th on 1.82 score, Borno 21th on 1.99 score, Nasarawa 22nd, on 1.99 score, and Kogi 23rd on 2.09 score.
With a score of 2.18, Bauchi ranked 24th, Yobe scored 2.26 to rank 25th, Niger scored 2.30 to emerge 26th, Adamawa scored 2.33 to rank 27th, Ondo scored 2.33 to rank 28th, Akwa Ibom scored 2.34 to rank 29th, Katsina scored 2.41 to emerge 30th while Ekiti scored 2.47 to rank 31st.
At the Bottom 5 of the States Performance Index, are Jigawa which scored 2.47 to rank 32nd, Delta 2.51 score at 33rd, Benue 2.64 score to rank 34th, Taraba scored 3.23 to emerge 35th, and Bayelsa scored 5.32 to gross 36th.
The BudgIT report urged that states at the bottom of the Index A ranking need to do more to rapidly consolidate on any ongoing strategies to improve their IGR and by extension, their viability as federating entities.
In its ranking of States Performance on Index B which measured availability of public revenue to invest in capital infrastructure after fulfilling repayment obligations to lenders and their government’s operation expenses, the BudgIT report ranked Ebonyi tops with a score of 0.47, Rivers second with a score of 0.48, Kebbi third with a score 0.51, Anambra fourth with a score of 0.53, and Kaduna fifth with a score of 0.57.
States with less revenue left to invest in capital infrastructure for citizens, and also face greater risk of borrowing are Zamfara which scored 0.96 and ranked 33rd, Oyo at 0.98 and ranked 34th, Benue which scored 1.00 and ranked 35th, and Taraba, ranking 36th with a score of 1.19.
However, BudgIT cautioned that “all Nigerian states still need to work hard to build economic prosperity and create more jobs in their states to ensure that there is more money in circulation and economic activities that can be taxed to improve their IGR”.
On the Subnational Debt Outlook, the BudgIT report said that, “Cumulatively, the 36 states total debt burden increased by N472.63billion or 8.78percent from N5.39trillion in 2019 to N5.86trillion in 2020. This increase in total subnational debt was driven largely by exchange rate volatility which saw the value of the Naira jump from N305.9/$1 in 2019 to N380/$1 as at December 31, 2020.”
Its report on the Spending Priorities shows that “based on each state’s 2020 revenue, five states prioritized investment in infrastructure by spending more on capital expenditure than operating expenses. The states are Ebonyi, Rivers, Anambra and Cross River states in the South and Kaduna State in the North.”
The BudgIT report also gave a detailed breakdown of Rivers State’s growth indices over the five-year IGR earning trend from 2016 through 2020, with N85.29billion in 2016, N89.48billion in 2017, N112.78billion in 2018, N140.40billion in 2019 and N117.19billion in 2020.
It showed that gross FAAC revenues stood at NN104.93billion in 2016, N138.15billion in 2017, N172.87billion in 2018, N169.13billion in 2019 and N149.75billion in 2020.
The state’s Year-On-Year Growth rate 2019 through 2020 shows that IGR declined by -16.53percent, Gross FAAC was -11.46percent, while Capital Expenditure was -24.14percent.
Also, the Structure of State of States Recurrent Revenue for 2020 reported N117.19billion in IGR value, representing 43.90percent, against N149.75billion Gross FAAC value, representing 56.10percent.
On the 2020 Spending Priority Index, Rivers State reported a Capital Expenditure of N168.36billion, or 59.70percent against N113.65billion Operating Expenses or 40.30percent.
The BudgIT report also gave an analysis of Rivers State’s Per Capita for 2020, which stood at N14,005 IGR Per Capita; N20,120 Capital Expenditure Per Capita; and N36,291 Total Debt Per Capita.
BudgIT report indicates that “Rivers State’s IGR was still the second highest in the country and accounted for 9.65percent of the total N1.21trillion in IGR generated by all 36 states; it was surpassed only by Lagos State, with an IGR of N418.98billion in 2020″.

By: Nelson Chukwudi

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Tinubu Orders Security Chiefs To Restore Peace In Plateau, Benue, Borno

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President Bola Tinubu has ordered a security outreach to the hotbeds of recent killings in Plateau, Benue and Borno States, to restore peace to areas wracked by mass killings and bomb attacks.
National Security Adviser, Nuhu Ribadu, disclosed this to State House correspondents after a four-hour security briefing with the President at the Aso Rock Villa, Abuja on Wednesday.
“We listened and we took instructions from him. We got new directives…to go meet with the political authorities there,” Ribadu told reporters, adding that Tinubu directed them to engage state-level authorities in the worst-hit regions.
Director-General, National Intelligence Agency, Mohammed Mohammed; Chief Defence Intelligence of the Nigerian Army, Gen. Emmanuel Undianeye; Director-General, Department of State Services, Oluwatosin Ajayi and Chief of Staff to the President, Femi Gbajabiamila, appeared for the briefing.
The Tide’s source reports that in Plateau State, inter-communal violence between predominantly Christian farmers and nomadic herders spiralled into gory slaughter when gunmen stormed Zikke village in Bassa Local Government early on April 14, killing at least 51 people and razing homes in a single night.
In Benue, at least 56 people were killed in Logo and Gbagir after twin assaults blamed on armed herders.
Meanwhile, in Borno State, eight passengers perished and scores were injured when an improvised explosive device ripped through a bus on the Damboa–Maiduguri highway on April 12.
Ribadu explained that after an extensive briefing, intelligence chiefs received fresh instructions to restore peace, security and stability across Nigeria.
“In particular, Tinubu had ordered immediate outreach to the political authorities in Plateau, Benue and Borno States, and the defence team had gone round those States to carry out his directives and report back.
“We gave him an update on what has been the case and what is going on, and even when he was out there, before coming back, he was constantly in touch. He was giving directives. He was following developments, and we, in charge of the security, got the opportunity today to come and brief him properly for hours. And it was exhaustive.
“We listened and we took instructions from him. We got new directives. The fact is, Mr. President is insisting and working so hard to ensure that we have peace, security and stability in our country. We gave him an update on what is going on, and we also assured him that work is ongoing and continues.
“We also carried out his instructions. We went round, the chiefs were all out where we had these incidents of insecurity in Plateau State, Benue State, even Borno, these particular three states, and we gave him feedback, because he directed us to go meet with the political authorities there,” the NSA explained.
Ribadu described Tinubu as “worried and concerned,” and said he directed that all security arms be deployed around the clock.
The government, he added, believes these steps have already produced measurable improvements, even if the situation is not yet 100 per cent safe and secure.
“He’s so worried and concerned, he insisted that enough is enough, and we are working and to ensure that we restore peace and security and all of us are there. The armed forces are there, the Civil Police, intelligence communities, they are there.
“They are working there 24 hours, and we feel that we have done enough to believe that we are on the right course, and we’ll be able to be on top of things,” Ribadu stated.
The NSA emphasised that combating insecurity was not solely a Federal Government responsibility.
He stated, “The issue of insecurity often is not just for the government. It involves the subunits. They are the ones who are directly with the people, especially if some of the challenges are more or less bordering on community problems.
“Not entirely everything is that, but of course it also plays a significant role. You need to work with the communities, the local governments, and the governors, especially the governors.
“The President will continue to direct that. We should be doing that, and that’s what we are able to. We are very happy and very satisfied with the instructions and directives given by Mr. President this evening.”
In Borno State, the NSA noted that while violence had surged in recent months, the insurgents refused to accept defeat.
He warned that most recent casualties there resulted from improvised explosive devices—”cowardly” IED attacks targeting civilians—and from opportunistic raids that follow any lull in fighting.
“We are getting the cooperation of the leadership at the state level, and everybody. It’s not 100 per cent…but we are going there.
“When you are having peace and you are beginning to get used to it, if one bad incident happens, you forget the periods that you enjoyed peacefully,” he added.
He paid tribute to the “many who do not sleep, who walk throughout, who do not go for any break or holiday”—the soldiers, police and intelligence officers whose sacrifices have created the fragile calm Nigerians now experience.
“They will continue to be there,” he said, adding, “Things have changed in this country…we are on the right track and we will not relent. We will not sit down; we will not stop until we are able to achieve results.”

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FG Laments Low Patronage Of Made-In-Nigeria Products

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A Federal Government agency – the National Agency for Science and Engineering Infrastructure, has decried the low patronage of Nigerian-made products by Nigerians.
The agency identified some challenges leading to the low patronage of the local products as affordability and public perception, among others.
Speaking during a stakeholders meeting organised by the agency in Akure, Ondo State capital, yesterday, the Deputy Director of Engineering at NASENI, Mr Joseph Alasoluyi, said Nigerians preferred buying foreign goods compared to local goods.
Alasoluyi, however disclosed that the agency had trained over 50 participants in the production of hand-made products, in a bid to ensure Nigeria-made products are patronised.
He explained that NASENI was set up to promote science, technology, and engineering as a foundation for Nigeria’s development and currently operates 12 institutes nationwide to achieve its objectives.
According to him, the aim of President Bola Tinubu, who is also the overall chairman of NASENI, was to ensure high production and patronage of “our local products thereby creating employment opportunities for many.”
He said, “The idea of this programme is to interface to ensure we produce products using our indigenous technology. This is what NASENI is out for, to ensure that homegrown technologies are encouraged.
“We are out there to ensure we integrate efforts to ensure that local technology is used to develop products within the resources we have.
“ The NASENI’s ‘3 Cs’ – Creation, Collaboration, and Commercialisation – that define NASENI’s strategic mandate: Creating innovations through research, Collaborating with partners to develop and refine products, and Commercialising these solutions to benefit the economy.
“Our achievements include the development of solar irrigation systems, CNG conversion centres, building machines capable of producing up to 1,000 blocks per hour, 10-inch tablets, locally made laptops, and electric tricycles (Keke Napep) set for market launch.”
In his remarks, the Deputy Vice Chancellor of the Federal University of Technology, Akure, Prof. Samuel Oluyamo, blamed the Federal Government for not properly funding research in the varsities, also noting that many research outputs were left halfway due to lack of funding and weak linkages between research institutions and industry.
Oluyamo also queried the Federal Government’s commitment to funding research and development, saying many academic innovations remained on the shelve due to a lack of support for commercialisation and poor infrastructure.
“Until we upscale research into mass production, technological growth will remain elusive. The government is not funding research in the universities enough. Thank God for TETfund that is trying in this regime. The major interest in beefing up research in universities and research institutions is really not there,” he said.

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Nigeria Seeks Return To JP Morgan Bond Index

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The Director-General of the Debt Management Office, Patience Oniha, has said that Nigeria is in advanced discussions with JP Morgan to re-enter the Government Bond Index and renew investors’ confidence.
Oniha disclosed this on Wednesday at a Nigerian Investors’ Forum on the sidelines of the World Bank and International Monetary Fund Spring Meetings in Washington, D.C.
The DMO boss explained that Nigeria has enjoyed favourable credit assessment among rating agencies in recent times on the back of the sweeping reforms initiated by the Central Bank of Nigeria.
Fitch Ratings recently upgraded the Long-Term Issuer Default Ratings of seven Nigerian banks and two bank holding companies to ‘B’ from ‘B-‘, noting that the outlooks are Stable.
The affected issuers are Access Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Bank Limited, Guaranty Trust Holding Company Plc, First HoldCo Plc, First Bank of Nigeria Ltd, Fidelity Bank Plc and Bank of Industry Limited.
The upgrades of the Long-Term IDRs of the banks followed the recent sovereign upgrade and reflect Fitch’s view that Nigeria’s sovereign credit profile has become less of a constraint on the issuers’ standalone creditworthiness, the rating agency said.
Fitch also upgraded Nigeria’s Long-Term IDRs to ‘B’ from ‘B-‘ on 11 April, a decision that reflected increased confidence in the government’s broad commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening and steps to end deficit monetisation and remove fuel subsidies.
“These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” Fitch said.
Nigeria was removed from the JP Morgan index in 2015 ostensibly due to its deviation from orthodox monetary policies and influence of capital control in its management of foreign exchange.
Principally due to reduction in oil revenues at the time, Nigeria introduced currency restrictions to defend the naira after it failed to halt a dangerous slide with burning of dollar reserves. The bank had earlier warned Nigeria to restore liquidity to its currency market in a way that allowed foreign investors tracking the index to conduct transactions with minimal hurdles.
“Foreign investors who track the GBI-EM series continue to face challenges and uncertainty while transacting in the naira due to the lack of a fully functional two-way FX market and limited transparency,” the bank said in a 2015 note.
Nigeria was listed in JP Morgan’s emerging government bond index in October 2012, after the Central Bank removed a requirement that foreign investors hold government bonds for a minimum of one year before exiting.
The JP Morgan Government Bond Index reflects investor confidence and opens doors to billions of investment flows, making Nigeria’s proposed re-entry a positive signal to the market and investors.
Oniha explained that talks with JP Morgan were ongoing and had gained momentum in recent times due to the stability created by the FX market reforms.
“With all the reforms that have taken place, particularly around FX, we have started engaging JP Morgan again to get back into the index. We think we are eligible now,” the DMO DG said.

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