14 States That Can’t Survive Without Federal Allocation

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These 14 States can barely survive without federal allocation


The Economic Intelligence magazine report shows that many States in Nigeria remain unviable, and cannot survive without the federal allocation due to lack foresight in revenue generation drive coupled with arm-chair governance.

The Economic Confidential has revealed that 14 States in Nigeria are insolvent as their Internally Generated Revenues (IGR) in 2017 were far below 10% of their receipts from the Federation Account Allocations (FAA) in the same year.

The Abuja-based Public Relations (PR) outfit made this known in its Annual States Viability Index ( ASVI) released on Sunday, April 29, 2018, shows many States remain unviable, and cannot survive without the federally collected revenue, mostly from the oil sector.

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According to the Economic Intelligence magazine, the states that may not survive without the Federation Account due to poor internal revenue earnings are:

1. Bauchi state

Bauchi realised a meagre N4.3bn compared to a total of N85bn it received from the Federation Account Allocation (FAA) in 2017 representing about 5%

2. Yobe

IGR of N3.59bn compared to FAA of N67bn representing 5.33%

3. Borno N4.9bn compared to FAA of N92bn representing 5.41%

4. Kebbi

IGR of N4.39bn compared to N76bn of FAA representing 5.77%

5. Katsina with IGR of N6bn compared to N103bn of FAA representing 5.8% within the period under review.

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6. Niger generated N6.5bn compared to FAA of N87bn representing 7.43%

7. Jigawa N6.6bn compared to FAA of N85bn representing 7.75%

8. Imo N6.8bn compared to FAA of N85bn representing 8.1%

9. Akwa Ibom N15bn compared to FAA of N197bn representing 8.06%

10. Ekiti N4.9bn compared to FAA of N59bn representing 8.38%

11. Osun N6.4bn compared to FAA of N76bn representing 8.45 %

12. Adamawa N6.2bn compared to FAA of N72.9bn representing 8.49%,

13. Taraba N5.7bn compared to FAA of N66bn representing 8.70% and

14. Ebonyi N5.1bn compared to FAA of N57.8bn representing 8%.

The report states that some poor states may not stay afloat outside the Federation Account Allocation due to socio-political crises including insurgency, militancy, armed-banditry and herdsmen attacks. Other states lack foresight in revenue generation drive coupled with arm-chair governance.

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