News
Rivers Tops 2021 Fiscal Performance Ranking
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
Rivers State Head of Service, Dr (Mrs) Inyingi Brown, has called on rural communities in the State to embrace the Rural Access and Agricultural marketing project (RAAMP) with a view to improving their living conditions.
This follows the ongoing sensitization campaign by the State Project Implementation Unit (SPIU) visits to Degema, Abonnema, Afam headquarters of Degema, Akuku Toru and Oyigbo Etche and Omuma local government areas respectively.
Dr Brown who was represented by the Deputy Director, Special Duties in her office, Mrs Dein Akpanah, said RAAMP was initiated by the Federal Government and World Bank to economically empower rural dwellers.s
She said the World Bank understands the plights of rural farmers and traders in the State, and therefore came up with the programme to address them.
According to her, RAAMP will improve the conditions of farmers, traders and fishermen, and therefore, behoves on every rural communities in the State to embrace the programme.
The Head of Service also said the programme would support the youths to be gainfully employed while bridges and roads will be built to link farms and fishing settlements.
Also speaking, the State project coordinator, Mr Joshua Kpakol, said the programme has the potential of creating millionaires among farmers and fishermen in the State.
Kpakol who was represented by Engr. Sam Tombari, said RAAMP would help farmers and fishermen to preserve their produce.
According to him, the project will build cold rooms and Silos for preservation of crops and fishes while access roads will also be created to link farmers and fishermen to the market.
He, however, warned them against any act that will lead to the suspension of the projects by the World Bank.
Kpakol particularly warned against acts such as kidnapping, marching ground, gender based violence and child labour, adding that such acts if they occur may lead to the cancellation of the project by the World Bank.
During the visit to Oyigbo local government area, Mr Joshua Kpakol, said the team was there to let them know how they will benefit from the Raamp.
The coordinator who was personally at Oyigbo said the World Bank introduced the project to check food insecurity in the State.
He said already 19 states in Nigeria are already benefitting from the project and called on them to embrace the project.
Meanwhile, stakeholders in the three local government areas have commended the World Bank for including their areas in the project.
They, however, complained over the incessant attacks by pirates on their waterways.
At Degema, King Agolia of Ke kingdom said land was a major problem in the kingdom.
King Agolia represented by High Chief Alpheus Damiebi said many indigenes of the kingdom are willing to go into farming but are handicapped by lack of land.
Also at Degema, the representative of the Omu Onyam Ekeim of Usokun Degema kingdom, Osoabo Isaac, said Degema has embraced the programme but needed more information on the implementation of the programme.
Similarly, while High Chief Precious Abadi advised that the project should not be narrowed to only crop farming, a community women leader, Mrs Orikinge Eremabo Otto, called for the construction of cold rooms in all fishing settlements in the area.
At Abonnema, Mr Diamond Kio linked the problem of the area to incessant piracy along waterways.
He also expressed fears over the possibility of the project being hijacked by politicians.
Also at Abonnema, a stakeholder, Ikiriko Kelvin, called on the World Bank to design an agricultural project that will suit the riverine environment, while at Oyigbo, HRH Eze Boniface Akawo expressed satisfaction with the project.
John Bibor
The political mudslinging between the Senate leadership and Senator Natasha Akpoti-Uduaghan continued yesterday as the Senate named Senator Aniekan Bassey as the new Chairman of the Committee on Diaspora and Non-Governmental Organisations.
Senate President, Godswill Akpabio, announced the appointment during yesterday’s plenary, confirming Bassey’s replacement of Senator Natasha Akpoti-Uduaghan, who is currently on suspension.
Akpoti-Uduaghan was reassigned to the Diaspora and NGOs Committee in February after she was removed as Chair of the Senate Committee on Local Content during a minor reshuffle.
Bassey is the senator representing Akwa Ibom North-East Senatorial District.
Although no reason was given for her removal yesterday, the change is believed to be connected to her unresolved suspension.
In May, Justice Binta Nyako of the Federal High Court ordered her reinstatement and directed her to tender an apology to the Senate.
However, the Senate has insisted it has not received a certified true copy of the court judgment.
Akpoti-Uduaghan who represents Kogi Central, has yet to resume her legislative duties despite a recent court ruling that voided her suspension.
In a televised interview on Tuesday, Akpoti-Uduaghan said she was awaiting the Certified True Copy of the judgment before officially returning to plenary, citing legal advice and respect for institutional process.
Although the Federal High Court described her suspension as “excessive and unconstitutional”, a legal opinion dated July 5 and attributed to the Senate’s counsel, Paul Daudu (SAN), argued that the ruling lacked any binding directive to enforce her reinstatement.
Akpoti-Uduaghan, one of only three female senators in the current assembly, said the continued delay in allowing her return was not only a denial of her mandate but also a blow to democratic representation.
“By keeping me out of the chambers, the Senate is not just silencing Kogi Central, it’s denying Nigerian women and children representation. We are only three female senators now, down from eight,” she said.
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