List of Top 8 States that Can’t Survive without Support from Federal Allocation – GCFRNG
Nigerian state governments derive the revenue to finance their recurring and capital expenditures from federal appropriations and Internally Generated Revenue (IGR).
While some are viable enough to survive without the federal allocation, there are others who cannot with handouts from the central government. The Annual State Viability Index (ASVI) has shown that some states cannot survive without the support of federal allocation. Photo credits: Douye Diri, Mai Mala Buni, Samuel Ortom, Adamawa State Source: Facebook Economic Confidential’s Annual State Viability Index (ASVI) has shown that some states cannot accept the federal allocation. According to The Cable, ASVI1 measured the state’s viability index using each state’s internally generated revenue as a percentage of its federal account allocation for the year.
We collect that states with an IGR of less than 10% of their total revenue from federal appropriations are considered insolvent. PAY ATTENTION: Sign up for the Digital Talk newsletter to receive must-have business stories and great success.
Listed below states that cannot survive without a federal allocation, according to ASVI:
- 1. Bayelsa : 8.0%
- 2. Jigawa: 8.1%
- 3. Katsina: 8.8%
- 4. Adamawa: 9.1%
- 5. Yobe: 9.2%
- 6. Niger: 9.6%
- 7. Taraba: 9.8 %
- 8. Benue: 9.8%
According to the report, Bayelsa state obtained a total of N152.54 billion as federal allocation in 2020, but only generated N12.18 billion as IGR, which represents 8.0% of its total federal account income. The state of Jigawa got N107 billion as a federal allocation, but only generated an IGR of N8.6 billion (8.1%). President Muhammadu Buhari’s home state, Katsina, received N130 billion as a federal allocation but got N11.3 billion from IGR (8.8%). The state of Adamawa with an IGR of N8.3 billion obtained N91 billion as a federal allocation (9.1%). The state of Yobe with an IGR of N7.7 billion raised N84 billion as a federal allocation (9.2%), while Niger with an IGR of N10.5 billion obtained N109 billion as a federal allocation (9.6%).
The state of Taraba with an IGR of N8.1 billion obtained N82 billion as a federal allocation (9.8%) while the state of Benue with an IGR of N10. 46 billion got N106 billion as a federal allocation (9.8%