BudgIT, a civic-tech firm for financial transparency and accountability, on Wednesday, September 29, released the 2020 edition of its yearly report which reveals the best and least performing states in Nigeria.
In the report titled Fiscal Options for Building Back Better, the organisation disclosed that five states emerged as those that improve their financial performance and sustainability levels.
The company explained that its report was influenced by states’ Internally Generated Revenue (IGR) published by the National Bureau of Statistics (NBS).
It added that during its examination, four parameters were used to check the states’ fiscal health within the period.
Revealing these four parameters, BudgIT's CEO Gabriel Okeowo, stated:
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“For this year’s report, we examined states’ fiscal health using four metrics namely; the ability of states to meet their operating expenses with IGR and VAT, states’ ability to cover their operating expenses and loan repayment with their total revenue, how much fiscal room states have to borrow more, and the degree to which each state prioritises capital expenditure with respect to their operating expenses."
Nigerian states performing well
A list of the five states that managed their wealth much better than the rest is given below:
While the first three are the only ones that can survive on IGR and Value Added Tax (VAT), the last two - Ebonyi and Kebbi — made it as new entrants to the top 5 category because of their impressive performances.
Speaking on their individual growth, the report revealed:
“Ebonyi state grew its IGR by 82.3 percent from N7.5 billion in 2019 to N13.6 billion in 2020, while Kebbi state grew its revenue by 87.02 percent from N7.4 billion in 2019 to N13.8 billion in 2020. Meanwhile, Ogun state (now 19th) and Kano state (now 22nd), dropped out of the top 5 category due to a sharp decline in their IGR in 2020.”
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Meanwhile, the Annual State Viability Index (ASVI) published by Economic Confidential had revealed some Nigerian states that could survive without the monthly federal allocations.
The viability index was measured using each state’s IGR as a percentage of its federal accounts allocation for the year.
Legit.ng gathered that states with an IGR of less than 10% of their total receipts from the federal allocations are considered insolvent.