Fifteen Nigerian states are in danger of going bankrupt according to a report by Economic confidential.
With poor Internally Generated Revenues (IGR) in 2015 which were far below 10% of their Federation Account Allocations (FAA) in one year from June 2015 to May 2016, some states might just find themselves extremely broke.
The report also revealed that Lagos with its N268bn IGR is wealthier than 32 States combined with the exception of Rivers, Delta and Ogun whose IGRs are very impressive.
According to the report, only Lagos State generated more revenue than its allocation from the Federation Account by 150% and no any other state has up to 100% of IGR to the federal allocation.
The IGR of the 36 states of the federation totalled N682.67 billion in 2015 as compared to N707.85 billion in 2014, a drop of N25.18 billion or a minus 3.56 percent.
The report explains that the 15 states who may go bankrupt find themselves in that position due to poor decision making on the revenue generation front.
Some of the states within this bracket include; Yobe which generated meagre N2.2b compared to a total of N57.4bn it received from the Federation Account Allocation (FAA) from June 2015 to May 2016 representing about 3.9%, Zamfara with IGR of N2.7bn compared to FAA of N56.6bn representing 4.8%; Ekiti N3.2bn compared to FAA of N50.460bn representing 6.5%; Borno with N3.5bn compared to N78.7bn of FAA representing 4.5% and Kebbi with IGR of N3.5bn compared to N64.8bn of FAA representing 5.5% within the period under review.
Others are; Taraba which generated N4.1bn compared to FAA of N56bn representing 6.4%; Nassarawa N4.4bn compared to FAA of N50.5bn representing 8.5%; Adamawa N4.4bn compared to FAA of N62.2bn representing 7.1%; Gombe N4.7bn compared to FAA of N49.8bn representing 9.6%; Jigawa N5bn compared to FAA of N73bn representing 7%; Bauchi N5.3bn compared to FAA of N72.6bn representing 7.4%; Imo N5.4bn compared to FAA of N71.6bn representing 7.6%; Katsina N5.7bn compared to FAA of N88.8bn representing 6.5 %; Niger N5.9bn compared to FAA of N74.8bn representing 8% and Sokoto N6.2bn compared to FAA of N69.7bn representing 8.9%.
On the rich side of the divide, Lagos leads the way with a total revenue generation of N268.22bn in the twelve months of last year. Rivers State comes in next with N82.10bn, Delta State N40.80bn, Ogun State N34.59bn and Edo state N19.11bn.
Economic confidential reports that Kano has the highest IGR in the North while Fayose governed Ekiti state has the lowest IGR in the South.
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