A report identifies Lagos and six other states as financially viable, while declaring six states as insolvent.

 

A recent report by Economic Confidential, a subsidiary of PR Nigeria, has highlighted seven states, including Lagos, Ogun, Rivers, Kaduna, Kwara, Oyo, and Edo, as the most financially viable states in Nigeria for the year 2022. The information was shared by Zekeri Idakwo, the Assistant Editor of Economic Confidential, during a press briefing and the presentation of the 2022 Annual States Viability Index Report in Abuja.

Based on figures released by the Nigerian Bureau of Statistics and the Federal Account Allocation Committee, the report revealed that the Internally Generated Revenue (IGR) of all 36 states totaled N1.8 trillion in 2022, surpassing the N1.76 trillion recorded in 2021. Lagos, in particular, stood out with an IGR of N651 billion, surpassing the combined IGR of 30 other states that were significantly lower and poor in comparison to their allocations from the Federation Account.

A breakdown of the report showcased the financial performance of the seven most viable states in contrast to their federal allocations. For instance, while Lagos received N370 billion from the Federation Account, its IGR stood at N651 billion. Other states like Ogun, Rivers, Kaduna, Kwara, Oyo, and Edo also demonstrated substantial IGR relative to their federal allocations.

On the flip side, six states, including Bayelsa, Akwa Ibom, Katsina, Taraba, Yobe, and Kebbi, were declared insolvent states as they failed to generate up to 10% of their total allocations received from the Federal Government in 2022. Bayelsa, at the bottom of the list, received N273 billion but generated only N15.9 billion, representing 5.81% of the allocations. The report emphasized that improving the IGR of these states requires a proactive approach such as diversification of the economy into productive sectors, reducing reliance on monthly Federation Account revenues from the oil sector.

Idakwo pointed out that some states struggled to attract investments due to various socio-political and economic challenges, including insurgency, kidnapping, armed banditry, and conflicts between herders and farmers. The report underscores the need for these states to address these issues to enhance their economic viability beyond monthly allocations.