WIKKIDATA: With IGR Only, No North Eastern State will Fund 15% of 2023 Budget

A WikkiTimes review of North Eastern states budget performance documents has shown that if the only source of revenue for these states was their internally generated revenue, none of the states would have been able to fund 15% of their 2023 proposed expenditures.

This would mean that if Northeastern States budgeted to spend N100 in 2023, none of the states would have spent N15, for the whole year, if the money available for spending is that which they made themselves and there is no allocation from the federation accounts.


Data review shows that in 2023, Taraba budgeted the sum of N380 billion, however at the end of the year, the state only made N9.108 billion as IGR, representing 2.3% of its total budget for the year.


Adamawa state also recorded the sum of N13.4 billion as its internally generated revenue for the year, this is despite budgeting N214.2 billion as budget for the year. This implication is that only 6.2% of its 2023 budget was made as IGR.


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The situation is not different in Borno state. In 2023, it planned to spend the sum of N235.6 billion, however only N19.2 billion was generated as internal revenue representing 8.1% of the 2023 budget. 


While Gombe state planned to spend N168.3 billion in 2023, it could only amass N15.6 billion IGR. By this, it would mean only 9.2% of its proposed budget was made as IGR. 


Bauchi recorded the highest IGR in the region for 2023, however even at this, what it made as IGR was only 12.1% of its proposed budget for the year. The total budget for the state stood at N281.6 billion while the actual IGR recorded was N34.2 billion.


Another North-Eastern state, Yobe, planned a total budget of N163.05 billion for 2023, however only N10.3 billion was recorded as IGR. By this, it would mean that the state made 6.3% of its total budget as IGR.

Insight into the North-Eastern States Financials 

Further review of the north-eastern states financial statements show how the revenue are being made by the state.

The state’s document shows that tax is the major source of internally generated revenue, thus this report reviews the figures posted for tax.

Analysis show that states are posting poor figures for their direct assessment tax which is largely for the informal sector.

For the whole of 2023, Taraba state could only make N26.5 million from direct assessment tax.

wWIKKIDATA: North-West States Unable to Fund Budget up to 20% with IGR in 2023

Its major tax revenue was recorded from Pay as You Earn where it posted the sum of N6.2 billion.

Yobe also made N37 million from direct assessment tax. It however amassed N6.8 billion from pay as you earn tax.

The case is however different in Bauchi where the sum of N628 million was earned as direct assessment and N30 billion was posted as pay as you earn tax.

Speaking to WikkiTimes, the executive director of Accountability Lab, Odeh Friday stated that there are needs for more technology inclined methods for revenue generation from informal sector, he also opined that there should be a devolution of powers on revenue generation to make states more independent minded in sourcing their own revenue.

“States have to start thinking of how to generate revenue innovatively. It is keen to know that while states have natural resources but the resources are not structured in a way to generate revenue. If the states continue to be poor in generating their own revenue, there is a need to have devolution of powers that encourage independent revenue mobilisation for these states, rather than just depend on the federal government”. 

He noted that states are seeming relaxed with knowledge that money will come from the federal government at the end of the month. 

Odeh also opined that while insecurity is an issue towards revenue generation, lack of inclusiveness for government policies is a bigger challenge than insecurity in the northeastern states.

“There is a need to use technology and innovative agricultural ventures to drive revenue generation. The government needs to also practice inclusiveness in its approach to revenue generation, that way, the citizens can see themselves as part of the process and willing to help states generate more” he noted 


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