The Kaduna state government recently said it will no longer depends on the monthly FAAC allocation to govern the state.
This statement by the Kaduna state government highlights how much the government has been able to transform the state internal revenue generation system.
And the statement comes at the backdrop of the recently released 2021 half year States’ IGR report by the national Bureau of statistics which shows that the state is on track to outperform its 2020 IGR figures.
When Governor El-Rufai took over as Governor in 2015 the state reported IGR was about N11.5bn and at the end of 2020 the IGR has increase to about N50.7bn, an increase of N39.2bn, which represents a 340% increase.
However, in Benue state, the situation is different. When Governor Samuel Ortom took over in 2015 Benue state IGR was N7.6bn and at the end of 2020 the state IGR managed to increase to N10.4bn, an increase of N900m, which represents an 11% increase.
Comparing the two states shows that Benue state Government has not done enough to systematically increase the states’ internal generated revenue system.
What the IGR Breakdown shows
A comparative analysis of the states’ IGR performance covering 5 years (2016 – 2020) by Infotag Benue shows that the biggest source of the internally generated revenue for Benue state in 2016 came from PAYE at 48% and has not only remain so but even grew to 72% in 2020.
While in Kaduna state the biggest source of the state’s internal generated revenue in 2016 was PAYE at 27%. However that systematically shifted to the MDAs as the biggest source of IGR in 2020 at 51%.
In 2020, the year that economies took a hit due to the impact of COVID 19, Kaduna state government grew its IGR to an all-time high to N50bn. While Benue state IGR plummeted from an all-time high of N17bn to N10bn.
This is an indication that the Kaduna state government has transformed its internal generated revenue system to be functional resulting in the IGR growth by 340% within five years.
While in Benue state the state revenue generating system remains dysfunctional as the internal generated revenue could only grow at 11% within the same time period.
Dysfunctional, Incompetency or a Corruption Hub?
The performance by the Benue state Internal Revenue service over the last six years raises serious question about the efficiency of the state internal revenue system.
It could be that either Benue state internal revenue services lacked the creative ability to grow the state IGR or it is also affected the dysfunctional governance system experience in the state.
The fluctuations in the revenue figures over the last six years exposes Benue state fiscally disability and systemic revenue leakages as can be seen in the decline of the state’s source of MDA Revenue in 2015 from 41% down to 22% in 2020.
And for Benue state that is fiscally bankrupt, there is an urgent need for a serious action by the state government to improve the state’s fiscal revenue.
The information in this piece is sourced from the States IGR Report as published by the National Bureau of Statistics and we encourage readers to click on links to visit sites to verify the accuracy of the information.