List of Top 8 States that Can't Survive without Support from Federal Allocation

List of Top 8 States that Can't Survive without Support from Federal Allocation

State governments in Nigeria get the revenues to fund their recurrent and capital expenditures from federal allocations and Internally Generated Revenue (IGR).

While some are viable enough to survive without the federal allocation, there are others who can't do with the handouts from the central government.

Nigerian Economy: 8 States that Can't Survive without Support from Federal Allocation
The Annual State Viability Index (ASVI) has shown some states that can't survive without the support from federal allocation. Photo credits: Douye Diri, Mai Mala Buni, Samuel Ortom, Adamawa State
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The Annual State Viability Index (ASVI) by Economic Confidential has shown some states that can't do with federal allocation.

According to The Cable, the ASVI l measured the viability index of states using each state’s internally generated revenue as a percentage of its federal accounts allocation for the year.

Legit.ng gathers that states with an IGR of less than 10% of their total receipts from the federal allocations are considered insolvent.

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Below are states listed as those that can not survive without federal allocation, according to the ASVI:

1. Bayelsa: 8.0%

2. Jigawa: 8.1%

3. Katsina: 8.8%

4. Adamawa: 9.1%

5. Yobe: 9.2%

6. Niger: 9.6%

7. Taraba: 9.8%

8. Benue: 9.8%

According to the report, Bayelsa state got a total of N152.54 billion as federal allocation in 2020 but only generated N12.18 billion as IGR, representing 8.0% of its total receipts from the federal account.

Jigawa state got N107 billion as federal allocation but only generated an IGR of N8.6 billion (8.1%).

President Muhammadu Buhari's home state of Katsina got N130 billion as federal allocation but made N11.3 billion IGR (8.8%).

Adamawa state with an IGR of N8.3 billion got N91 billion as federal allocation (9.1%).

Yobe state with an IGR of N7.7 billion collected N84 billion as federal allocation (9.2%) while Niger with an IGR of N10.5 billion got N109 billion as federal allocation (9.6%).

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Taraba state with an IGR of N8.1 billion got N82 billion as federal allocation (9.8%) while Benue state with an IGR of N10.46 billion got N106 billion as federal allocation (9.8%).

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Earlier, Legit.ng reported that the 36 state governments sued the federal government over the proceeds of the stamp duties collected between 2015 and 2020 which they put at 176 billion naira.

The state governments demanded a refund of the proceeds in a suit filed before the Supreme Court on Thursday, September 9.

The states through their attorneys-general asked the apex court to determine whether or not they are the sole authority to administer and collect stamp duties within their respective states.

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The amount was generated in the second quarter, which falls between April to June. During this period, a total number of 565,385 passengers was recorded by NRC.

It was gathered that the railway traffic rise rose by 422.3% when the second quarter of both last year (108,238 passengers) and 2021 are compared; this means 457,147 passengers switched to railway transport within one year.

Source: Legit.ng

Authors:
Nurudeen Lawal avatar

Nurudeen Lawal (Head of Politics and Current Affairs Desk) Nurudeen Lawal is an AFP-certified journalist with a wealth of experience spanning over 8 years. He received his B/Arts degree in Literature-in-English from OAU. Lawal is the Head of the Politics/CA Desk at Legit.ng, where he applies his expertise to provide incisive coverage of events. He was named the Political Desk Head of the Year (Nigeria Media Nite-Out Award 2023). He is also a certified fact-checker (Dubawa fellowship, 2020). Contact him at lawal.nurudeen@corp.legit.ng or +2347057737768.

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