BudgIT, a civic tech organisation, has said that only two Nigerian stated can take care of their operating costs without relying on revenue from the Federation Account Allocation Committee (FAAC).
The states are Lagos and Rivers.
BudgIT disclosed this in its 2024 State of States Report launched in Abuja on Tuesday.
The report stated that Ogun, Anambra, Cross River, Kwara, Kaduna, and Edo states can generate Internally Generated Revenue, IGR sufficient to cover at least 50 percent of their operating costs.
“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 stated.
The report added that in the 2023 fiscal year, the combined revenue of all 36 states in Nigeria increased significantly by 31.2 percent from ₦6.6 trillion in 2022 to ₦8.66 trillion.
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