A WikkiTimes data review has shown that Northwestern states recorded low internally generated revenue, compared to their targets in the first quarter of 2024.
The review shows that the state made as low as N1 billion as IGR in the first quarter.
Kano recorded N9.5 billion, as against its targeted IGR average of N25.5 billion for the year. Review shows that the state planned to generate N101 billion for the whole year, meaning that the quarterly average is expected to be N25.5 billion. This shows that on a quarterly basis, Kano only recorded 37% IGR performance.
Kaduna also budgeted the sum of N120 billion as IGR for the whole year 2024, meaning it expects a quarterly average of N30 billion. Review shows that only N13 billion was made in the first quarter, representing 43% budget performance.
Katsina planned N40 billion for the whole year, showing a quarterly performance of N10 billion; it could only post N6 billion for the first quarter.
Zamfara also recorded N2 billion as against planned N13 billion, while Jigawa posted N1 Billion
Why are Northwestern States Struggling With IGR?
A further review shows that a state like Kano is struggling with its tax mobilisation. For instance in Q1, 2024, it only made the sum of N6 billion as tax revenue, as against its prorated average of N14 billion for the first quarter.
It also performed poorly for non-tax revenue, making only N2 billion in the first quarter as against an expected average of N11.25 billion for the first quarter.
Other states have similar issues. Jigawa state could only record N1 billion as tax revenue despite having a quarterly average of N9.5 billion for the same. In Fact the state made only N9 million from direct assessment tax for the first quarter.
Northwestern States Fail to Make Equivalent 40% FAAC Allocation as IGR.
Further analysis shows that no Northwestern states made up to 40% of what they received as FAAC allocation as IGR.
For instance, Kano state received N62 billion as FAAC allocation but only made N9 billion itself in the first quarter, meaning that by percentage, Kano only made 14% of FAAC receipt as IGR.
Kaduna state recorded only 38% of FAAC allocation as IGR. Zamfara made N2 billion and received N26 billion from the federal government, showing a 7% FAAC to IGR performance.
Other states such as Jigawa received N30 billion but only made N1 billion, with Katsina receiving N30 billion and recording N6 billion on its own as internally generated revenue.
Northwestern Nigeria Revenue Generation Problem Continues
WikkiTimes has over time reported how northwestern nigeria states grapple with revenue generation, a situation which has led to increased loan and debt service burden.
Experts have warned that this situation could harm development of northwestern nigeria states.
