Lagos, Abuja, and Ogun states have topped the states with the highest internally generated revenue per population in Nigeria in the first half of 2021.
This is according to data from the National Bureau of Statistics, which stated that the 36 states of the federation including the Federal Capital recorded a sum of N849.12 billion as internally generated revenue between January and June 2021, which is 38.5% higher than the N612.87 billion recorded in H1 2020 and 26% higher than N673.82 billion recorded in H2 2020.
Similarly, the IGR per population at the national level also increased by 34.1% from N2,781 recorded in the corresponding period of 2020 to N3,729 in the review period. This indicates more resolve on the parts of the states to increase their revenues despite the increase in population as only two states recorded a decline in their IGR when compared to H1 2020.
Meanwhile, the increase in states’ internal revenues could be attributed to a favorable base period where economic activities were dampened by the effect of the covid-19 lockdown, which resulted in a significant downturn in the general economy of the country
The Southwestern region of the country boasts of the highest IGR per population with aggregate revenue of N385.41 billion, resulting in an N8,575 IGR per population. The region grew its revenue by 37.3% compared to N6,243 recorded in the corresponding period of 2020.
South-South region followed with an average of N4,626.99 revenue per individual, having recorded an 8.8% increase from N4,253 recorded in the previous year, closely followed by North Central with N3,745.83.
While the southwest region dwarfed other areas, the list of top 10 states with the highest IGR per population spreads across the South-West, North-Central, and South-South regions.
Delta State recorded an IGR per population of N6,309 in H1 2021, increasing by 31.7% year-on-year compared to N4,791 recorded in the previous year. Similarly, its total IGR for the period jumped by 36% and 15.2% to N41.93 billion compared to N30.84 billion and N36.39 billion recorded in 2020 and 2019 respectively.
A cursory look at data from the NBS shows that Delta State relies on federal allocation for over 75% of its total annual revenue.
Rivers State, a major oil-producing region of the country stands fourth on the list with an estimated IGR per population of N6,621 in the first half of 2021, representing a 14.2% decline compared to N7,718 recorded in the previous year. It also represents a 29.5% reduction compared to N9,393 recorded in 2019.
The state, which was in the second position in the previous year, moved two steps downward as its IGR for H1 2021 dropped by 11.2% from N64.59 billion recorded in H1 2020 to N57.32 billion in the period under review.
Despite the position of the state on the list, it is worth noting that about 55% of its total available annual revenue is received from the federal purse, indicating that Rivers State is highly dependent on FAAC allocations.
Ogun State recorded an increase of 124% in its IGR per population to N8,908 in the first half of 2021, with an estimated population size of 6.15 million people. While comparing to N5,135 recorded in H1 2019, it increased by 73.5%.
Ogun State, which is a neighbouring state to Lagos and hosts notable manufacturing plants such as Dangote Cement Plant, Lafarge plant amongst others, boasted of an IGR of N54.82 billion in the period under review, jumping by 131.5% compared to N23.68 billion recorded in the same period of 2020.
Abuja, the country’s capital followed on the list with an average IGR per population of N12,173 in the first half of the year. Its IGR per population increased by 78.8% and 48.7% compared to N6,809 and N8,187 recorded in H1 2020 and H1 2019 respectively.
Abuja also maintained second on the list in terms of total IGR generated in the period with N60.07 billion in H1 2021, representing a 96.2% increase compared to N35.21 billion recorded in the corresponding period of last year.
Lagos generated a sum of N267.23 billion as internal revenue in the review period, growing by 30.7% from N204.51 billion recorded in the previous year and 30.3% increase compared to N205.16 billion recorded in the corresponding period of 2019.
In the same manner, its IGR per population increased by 26.6% from N14,337 recorded in H1 2020 to N18,144 in the review period. It is also worth noting that when compared with N14,850 generated in the same period of 2019, it increased by 22.2%.
The commercial centre of the country continues to contribute the giant share in terms of state internally generated revenue. Notably, Lagos State accounted for 31.5% of the total internal revenue generated by the 36 states of the federation including the FCT.
The internally generated revenue is regarded as income generated by various states in the country, independent of their share of the revenue from the Federation Account. However, apart from the clear exception of Lagos State, all others depend largely on statutory allocations to run their state affairs.
IGR per population estimates the average amount of revenue generated by the government of the state per individual living in the state. It was computed by dividing the states’ IGR by their estimated population size for each prevailing year.
