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Report Says 17 Nigerian States Bankrupt

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Economic Confidential on Sunday released its Annual States Viability Index (ASVI) report.

 

It showed that 17 States are insolvent as their Internally Generated Revenues (IGR) in 2018 were far below 10% of their receipts from the Federation Account Allocations (FAA) in the same year.

 

The index declared that without the monthly disbursement from the Federation Account Allocation Committee (FAAC), many states remain unviable, and cannot survive without the federally collected revenue, mostly from the oil sector.

 

The IGR are generated by states through Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDAs).

 

The IGR of the 36 states of the federation totalled N1.1 trillion in 2018 as compared to N931 billion in 2018, an increase of N172 billion.

 

The report further indicates that the IGR of Lagos State of N382bn is higher than that of 30 States put together whose Internally Generated Revenues are extremely low, and poor compared to their allocations from the Federation Account.

 

Meanwhile, the Federal Capital Territory (FCT) Abuja, which is not a state but the nation’s capital generated N65bn IGR against N29bn it got from the Federation Account in 2018.

 

Lagos State remained steadfast in its number one position in IGR with a total revenue generation of N382bn compared to FAA of N260bn which translate to 146% in the twelve months of 2018.

 

It is followed by Ogun State which generated IGR of N84.55bn compared to FAA of N93bn representing 90%; Rivers with N112bn compared to FAA of N237bn representing 47% and Kwara State with a low receipt from the Federation Account has maintained its impressive IGR by generating N23bn compared to FAA of N81bn representing 28%.

 

Others with impressive IGR include Edo with IGR of N28bn compared to FAA of N112bn representing 25%; Kano generated N44bn compared to FAA of N183bn representing 24%; Enugu with IGR of N22bn compared to FAA of N92bn representing 23%; Ondo with IGR of N24bn compared to FAA of N108bn representing 22.77%; Kaduna with IGR of N29bn compared to FAA of N131bn representing 22.44% while Delta State earned N58bn IGR against FAA of N285bn representing 20%.

 

The report noted that ten states with impressive IGR generated N808bn in total, while the remaining states merely generated a total of N295bn in 2018.

 

While the report provides shocking discoveries, the states with less than 10% IGR have remained 17 as in the previous year 2017.

 

It added: “The poor states may not stay afloat outside the Federation Account Allocation due to socio-political crises including insurgency, kidnapping, armed-banditry and herdsmen-farmer clashes.

 

“Other states lack foresight in revenue generation drive coupled with arm-chair governance.

 

“The states that may not survive without the Federation Account due to poor internal revenue generation are Ebonyi which realized a meagre N6.14bn compared to a total of N76bn it received from the Federation Account Allocation (FAA) in 2018 representing about 7.98%; Bayelsa with IGR of N13.6bn compared to FAA of N192bn representing 7.10%; Taraba N5.96bnbn compared to FAA of N88bn representing 6.77%; Adamawa with IGR of N6.2bn compared to N97bn of FAA representing 6.77% and Borno with IGR of N6.52bn compared to N122bn of FAA representing 5.3% within the period under review.

 

“The major poor internal revenue earners are Katsina which generated N6.9bn compared to FAA of N138bn representing 5.03%; Yobe N4.48bn compared to FAA of N89bn representing 4.86% and lastly Kebbi N4.88bn IGR compared to FAA of N101bn representing 4.88%.”

 

The Economic Confidential ASVI further showed that only three states in the entire Northern region have IGR above 20% in comparison to their respective allocations from the Federation Account. They are Kwara, Kano and Kaduna States. Meanwhile seven states in the South recorded over 20% IGR in 2018. They are Lagos, Ogun, Rivers, Edo, Enugu, Ondo and Delta States.

 

The four Southern states with the poorest Internally Generated Revenue of less than 10% compared to their FAA in 2018 are Akwa Ibom, Ekiti, Ebonyi and Bayelsa. Similarly, 13 Northern States have poorest IGR, namely Benue, Nasarawa, Gombe, Zamfara, Niger, Bauchi, Jigawa, Taraba, Adamawa, Borno, Katsina, Yobe and Kebbi States.

 

 

 

 

 

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Buhari Extends Ministers Tenure Till Tuesday

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President Muhammadu Buhari and his vice Osibanjo
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President Muhammadu Buhari President Muhammadu Buhari has asked his ministers to continue working till Tuesday.

 

He gave the directives during the valedictory Federal Executive Council (FEC) meeting yesterday.

 

The President said, thereafter, they should submit their handing over notes to the Secretary to the Government of the Federation.

 

Buhari said: “ Although today is our last council meeting, continue to work until Tuesday.. Your handover letters should be submitted to the office of the SGF.”

 

The president commended the ministers for contributing towards the development of the country.

 

Yemi Osibanjo, Vice President and the 31 ministers took turn to deliver their speeches on their experiences working with the president.

 

The president would be sworn in on Wednesday May 29 for his second term.

 

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UBA’s Africa Conversations: Leaders Emphasise Importance of History to African Development

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l-r Chairman of Ghana’s Convention People’s Party, and daughter of Mr. Kwame Nkrumah, Ms Samia Nkrumah; Nobel Laureate, Professor Wole Soyinka; Group Chairman, UBA Plc, Mr. Tony Elumelu; Guinean Historian and playwright, Professor, Djibril Tamsir Niane; Afro musician, Mr. Femi Kuti; and Legal Practitioner and Moderator, Ms. Ayo Obe, during the panel discussion themed ‘Africa’s History Redefined, our past, the path to the future,’ organised by UBA to mark Africa’s Day in Lagos on Wednesday
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African leading minds have called on Africans to be mindful of their rich history, which according to them creates the path towards the socio-cultural, economic and political development of the continent

 

The strong African voices which included Group Chairman, United Bank for Africa (UBA), Tony Elumelu, Nobel Laureate, Wole Soyinka; Professor emeritus and authority in Sahelian history, Djibril Tamsir Niane; Ghanaian Politician, Samia Nkrumah and Famous Musician, Femi Kuti spoke during the first edition of UBA’s Africa Conversations, a symposium organised by the United Bank for Africa (UBA) Plc at the UBA House in Lagos, as part of activities marking this year’s Africa Day celebrations. The theme of the panel session was “Africa’s History Redefined, Our Past, the Path to the Future”.

 

Opening the conversation, the Group Chairman, UBA, Tony Elumelu stated ‘UBA understands the past- that Africa as a continent has always been united by the struggle for identity. UBA is a symbol for the development of Africa, for the economic empowerment of our people, the Small and Medium Enterprises as well as the big corporations. Thus, identifying with Africa and indeed Africa Day is synonymous with who we are as a bank. It presents us the opportunity to remind ourselves, the world and indeed Africa that we owe ourselves the duty of making Africa the continent of our dreams.”

 

Elumelu added that it is important for Africans to remember history as this will help prepare for the future. ‘Our past provides a veritable tool to fashioning the continent’s development, renaissance and economic growth’ he emphasised.

 

Speaking strongly on the issue, professor Wole Soyinka, who commended UBA’s initiative for opening up discussions on these pressing topics decried the growing erosion of history from the curriculum in African schools, adding that the lack of knowledge of our past makes children’s growth on the continent truncated. “How can we cope with the modern phenomenon if we do not know the past? We should never forget the importance of history as it is not just an academic exercise,” he enthused.

 

Corroborating Soyinka’s position, Professor Niane opined that reminiscing about Africa’s rich history is important as there is no people without history. He said, “A lot of work has been done by Africans and we have to be happy about it. There is the need to continue the conversation about African unity. Policies  have been put in place and our democracy can only get stronger. Peace will reign and Africa will be reunited. Economic transformation is also important but it is not the only thing we should concentrate on.”

 

 

Samia Nkrumah, the daughter of Kwame Nkrumah of Ghana, who commended UBA for prioritising African entrepreneurship, called for a renewed attempt at African unity, which according to her, has to be a collective effort of the people.

 

Nkrumah said, “As we work in our individual smaller countries, it will be easier to achieve more if we work together and complete unification can only come if we work together; we won’t go anywhere unless we use unity as a political project.’ She added.

 

On his part, Femi Kuti emphasised the importance of History, saying “Our children need to learn this history so that they can come up and build the continent. We need everyone – both boys and girls to work towards this vision.”

 

The UBA Conversations, an initiative of the Pan African financial institution, aims at aggregating discussions necessary for the growth and development of the continent. It is being held as part of the activities to mark the 2019 edition of Africa Day celebrations by the bank.

 

With presence in 20 African countries as well as in the United States, France and The United Kingdom, UBA’s passion for Africa’s growth is part of who they are.

 

The bank is set to continue conversations around these important topics that are required to galvanise the African economy with the aim of attracting the much needed support that will boost SMEs and support business growth on the continent.

 

 

 

 

 

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Facebook Celebrates One Year of NG_Hub

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Celebrating exactly a year to the day since the doors of NG_Hub opened in Lagos, and Facebook further cemented its ambitions to train users across Nigeria in digital skills, Facebook released an infographic highlighting key milestones over the past year.

Created as part of Facebook’s ongoing commitment and investment in growing the start-up ecosystem, and in partnership with CcHub, NG_Hub is a multi-faceted space which connects and bring together developers, start-up’s and the wider community to collaborate, learn and exchange ideas. With a number of expert training and events with partners across Nigeria, undertaking in the hub and externally, the aim is to equip individuals and businesses to grow.

Some highlights over the past year includes: Trained over 50,800 SMBs in digital skills across 20 states in Nigeria

– Delivered 526 events with over 11,490 attendees at NG_Hub, including programmes such as AR/VR meetups, FbStart Accelerator Programme, Facebook Community Leaders Community meetings (CLCs), Developer Circle gatherings etc.

– Directly supported businesses in 11 different industries from agriculture, through to catering, education and fashion

Speaking of its one-year anniversary, Adaora Ikenze, Head of Public Policy, West and Central Africa, said: “I’m proud of the incredible impact that NG_Hub has had in its first year, and continues to have on the lives of young Nigerians.

“We remain committed in deepening our engagement, increasing skills development and supporting the next set of innovators, tech entrepreneurs, start-ups,in our collective bid to change the face of technology and grow the economy.”

Commenting on the partnership Bosun Tijani, Founder/CEO of CcHub, added: “We’re glad about the tremendous impact Facebook’s investment in NG_HUB has had in such a short period and the ecosystem is already seeing the fruits of this commitment. We’re committed to working with Facebook to position NG_HUB as a major platform that drives smart application of technology innovation for economic prosperity across the region and beyond.”

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