According to the civic tech group BudgIT, only the states of Lagos and Rivers are able to cover their running expenses without depending on funds from the Federation Account Allocation Committee.
In its 2024 State of States Report, which was unveiled in Abuja on Tuesday, BudgIT revealed this.
According to the survey, the states of Ogun, Anambra, Cross River, Kwara, Kaduna, and Edo are able to produce enough Internally Generated Revenue (IGR) to cover at least half of their running expenses.
This comes as 34 states rely on FAAC receipts for 62% of their ongoing expenses, according to the BudgIT research.
The research also stated that 14 states in Nigeria depended on FAAC for 70% of their revenue, while 32 states depended on FAAC collections for at least 55% of their 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 said.
According to the research, the overall revenue of Nigeria’s 36 states rose by 31.2 percent from N6.6 trillion in 2022 to N8.66 trillion in the 2023 fiscal year.
