25 States To Generate N1.493tr IGR in 2017

25 States To Generate N1.493tr IGR in 2017

With a combined proposed budget of N4.907 trillion budget for 2017, as presented by 25 states in the country, many states are looking inwards to fund their spending as they plan to source N1.493 trillion of these from internally generated revenue (IGR).

A look at the spending plans of 25 states which had presented their budgets, some of which have already been signed, showed that state governments are beginning to look away from federal government allocations which had not been sufficient to meet their needs in 2016.

As the low price of crude oil had affected federal revenues, states which had been soft on IGR are now setting high targets for their revenue boards. While grants and borrowings as well as federal allocations still dominate the revenue plans of the states, the government of Those states have plans to step up on their tax drive in 2017.

Lagos state which has the largest budget among the states having signed a spending plan of N813 billion for 2017 said it plans to generate N447.94 billion internally during the year. The commercial nerve centre of the country  which is known for its high tax drive is accounting for 36 per cent of the IGR to be generated by these states in 2017.

The state’s commissioner for finance, who is also the Commissioner overseeing the Ministry of Economic Planning and Budget, Akinyemi Ashade while giving a breakdown of the budget after it was signed said the 2017 budget, would largely be driven by Internally Generated Revenue (IGR) made up of taxes, rates, levies and others.

Lagos is focusing its budget on continuous promotion of massive investments in security, infrastructure, transport/traffic management, physical and social infrastructural development, environment, health, housing, tourism, power, e-governance, education, agriculture and skill acquisition.

Rivera, Ogun, Cross River, and Oyo states also plan to aggressively increase their IGRs in 2017 as they plan to source N168.85 billion, N114.34 billion, N144.97 billion and N107.2 billion respectively through taxation and other internally generated funding in 2017.

Rivers State Governor, Nyesom Wike, who presented a budget of N470 billionfor the 2017 fiscal year said “We are projecting an aggregate sum of N220 billion from FAAC, distributed as follows: N23 billion from statutory allocation; N102 billion from 13 per cent mineral derivation fund; N16.5 billion from VAT, N8 billion exchange gain;N70 billion for Paris Club and other reimbursements, and N400 million from capital receipts. We are also projecting to generate an aggregate sum of N168.857 billion from IGR.”

Bauchi and Yobe states which has a spending plan of N145 billion and N69.4 billion for 2017 has the lowest proposed IGR as the state will raise N11.2 billion each through taxes. According to the Governor of Yobe state, Ibrahim Gaidam, the state was expecting N35.3 billion from statutory allocation, N3.8 billion from Internally Generated Revenue and N7.4 billion from Value Added Tax (VAT).

Although the Yobe 2017 budget of N69.4 billion  is 22 per cent below its N88.9 billion spending plan in 2016, Gaidam said it was based on the economic realities of the country and the state. “Government intends to spend the sum of N27.407 billion or 39.5 per cent to cater for capital expenditure, while the sum of N41.9 billion or 60.5 per cent is earmarked for recurrent expenditure,” he said.


The Bauchi state commissioner for information, culture and tourism , Alhaji Idris Abdullahi had informed that the 2017 budget will be funded by an opening balance of N250 million; statutory allocation/excess crude of N56 billion; Value Added Tax (VAT); N16.5 billion;  independent revenue N11.182 billion; aids and grants N18.012 billion; capital receipts N13.881 billion; internal loans N21.460 billion and external loans N8.160 billion.

Giving the details of sectoral allocations in the budget, Abdullahi informed that N27.451 billion will be spent on education; N23.409 billion will go to health while N20.905 billion  will be spent also on road constructions and infrastructure development.

In Jigawa, Governor  Badaru Abubakar, who tagged the expenditure, ‘Budget of Economic Diversification and Self-sufficiency’, said it would be based on the consolidated position of the revenue projections. Accoridng to him,total amount of N128 billion is to be derived from various income sources and expended on the various expenditure components of the budget.

The governor said the sums of N800 million is set aside for stabilisation and contingency funds, and “we have a total retained revenue of N127.07 billion shared among the recurrent and capital expenditure components.”

Badaru said the budget projection would be based on‎ the expectation that the state Internally Generated Revenue (IGR) in 2017 would be N12.439 billion‎ while the Statutory Allocation and Value Added Tax is N45.908 billion. He said local government contributions for primary education personnel and primary healthcare staff have N17.417 billion.

The governor said the opening balance for 2016 fiscal year, including funds in project accounts such as the Universal Basic Education Grant, stands at N19.066 billion while‎ internal and external loans stands at N9.150 billion.