BudgIT, a civic technology organisation, has stated that only Lagos and Rivers states can cover their operational expenses without depending on funds from the Federation Account Allocation Committee (FACC).
BudgIT revealed this in its 2024 State of States Report presented in Abuja on Tuesday.
The report indicated that Ogun, Anambra, Cross River, Kwara, Kaduna, and Edo states have the potential to generate Internally Generated Revenue (IGR) capable of covering at least 50% of their operational costs.
This follows BudgIT’s findings, which showed that 34 states rely on FAAC allocations for 62% of their recurrent spending.
Furthermore, the report highlighted that 32 states in Nigeria depend on FAAC allocations for a minimum of 55% of their revenue, while 14 states depend on it for 70% of their revenue.
“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% and 118.39%, respectively.
“Several other states, including Ogun, Anambra, Cross River, Kwara, Kaduna and Edo managed to generate IGR sufficient to cover at least 50% of their operating costs, with the rest relying on federal transfers.
“32 states relied on FAAC receipts for at least 55% of their total revenue, while 14 states relied on FAAC receipts for at least 70% of their total revenue.
“Furthermore, transfers to states from the federation account comprised at least 62% of the recurrent revenue of 34 states, except Lagos and Ogun, while 21 states relied on federal transfers for at least 80% of their recurrent revenue,” the report stated.
The report indicated that during the 2023 fiscal year, the total revenue from all 36 states in Nigeria saw a notable rise of 31.2%, growing from N6.6 trillion in 2022 to N8.66 trillion.