Katsina top list of poor, economically non-viable states in Nigeria
The 2019 Annual States Viability Index, ASVI, released on Sunday by Economic Confidential, showed that only six states in the federation are economically viable.
The states include Lagos, Ogun, Rivers, Kwara, Kaduna and Enugu, while also listing the poor and insolvent states to include Katsina, Kebbi, Borno, Bayelsa and Taraba states, based on their poor internally-generated revenue, IGR, which is far below 10% of their receipts from the federation account.
The index proved that without the monthly disbursement from the Federation Account Allocation Committee, FAAC, many states remain unviable, and cannot survive without the federally-collected revenue, mostly from the oil sector.
The IGR are generated by states through Pay-As-You-Earn Tax, PAYE, Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies, MDAs.
The IGR of the 36 states of the federation totalled N1.3 trillion in 2019, as compared to N1.1 trillion in 2018, an increase of about N200 billion.
Lagos State IGR of N398bn in 2019 was higher than 20 States’ IGR combined, thus maintaining its number one position.
Lagos received N270billion FAA, meaning its IGR (147 percent) was more.
In the year under review, the Federal Capital Territory (FCT) Abuja generated N74billion against N30billion FAA.
Of the states that are not economically viable, Katsina generated the poorest and lowest IGR compared to its federal allocation in 2019.
It generated N8billion IGR compared to N136billion FAA – representing 6 percent only.