BudgIT, a civic tech organisation, has stated that Rivers and Lagos state are the only states that can take care of their operating costs without relying on revenue from the Federation Account Allocation Committee.
BudgIT made this disclosure known in its 2024 State of States Report launched in Abuja.
The report noted that Ogun, Anambra, Cross River, Kwara, Kaduna, and Edo states can generate Internally Generated Revenue, IGR sufficient to cover at least 50 percent of their operating costs.
This is coming as the BudgIT’s report disclosed that 34 states rely on FAAC receipts for 62 percent of their recurrent expenditures.
Also, the report stated that 32 states in Nigeria relied on FAAC receipts for at least 55 percent of their revenue, while 14 states relied on FAAC for 70 percent revenue.
“Rivers and Lagos were the only two states that generated more than enough internally generated revenue (IGR) to cover their operating expenses, with lGR to operating expense ratios of 121.26 percent and 118.39 percent, respectively.
“Several other states, including Ogun, Anambra, Cross River, Kwara, Kaduna, and Edo, managed to generate IGR sufficient to cover at least 50 percent of their operating costs, with the rest relying on federal transfers.
“32 states relied on FAAC receipts for at least 55 percent of their total revenue, while 14 states relied on FAAC receipts for at least 70 percent of their total revenue.
“Furthermore, transfers to states from the federation account comprised at least 62 percent of the recurrent revenue of 34 states, except Lagos and Ogun, while 21 states relied on federal transfers for at least 80 percent of their recurrent revenue,” the report stated.
