The latest statistics released by the Central Bank of Nigeria, CBN, have revealed a significant increase in the Internally Generated Revenues, IGRs, of States of the Federation.
The CBN data revealed that internally generated revenue provided 21.8 per cent of the total revenue of the 36 states and the Federal Capital Territory (FCT), compared with 15.3 per cent the previous year.
Analysis of the data showed that aggregate IGR grew by 37 per cent to N801 billion ($4.0 billion) from N586 billion in 2013.
Achieving an IGR/total revenue ratio of 67 per cent while Ogun, Rivers and Anambra States recorded 40 per cent, 32 per cent and 31 per cent respectively.
Given that the oil price has been on the slide since mid-2014, analysts posit that states have no choice than to reduce their dependence on the oil-driven monthly distributions from the FAAC by bolstering their IGR.
The CBN data also revealed that Value Added Tax (VAT) receipts stood at N389 billion, representing 10.6 per cent of total revenue in 2014.
