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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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Trane® Appoints JMG as New Distributor in Nigeria

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Trane, a global provider of indoor comfort systems and services and a brand of Ingersoll Rand, has entered into a new distribution agreement with JMG Limited Nigeria, that will significantly expand and strengthen the distribution capacity of Trane in Nigeria.

The launch of Trane in Nigeria was at the MEGA CLIMA exhibition, dedicated to the refrigeration, air conditioning, ventilation and heating sector, which took place in the Landmark Exhibition Center in Lagos from the 11th to the 13th of July 2019. JMG Limited and Trane exhibited the Trane brand and conduct a seminar for the professional in the HVAC market.

Under the agreement, JMG Limited will be the Authorized Distributor of Trane residential and light commercial systems in Nigeria through a dedicated team of experienced sales and services engineers. This Distributorship allows JMG Limited to complete its strategic development in the building infrastructure segment in order to offer a One Stop solution to developers from power, electrical products, mobility equipment and now efficient air-conditioning systems.

Mr. Hazem Bouzaiane, Africa Distributor Management Leader, Trane, said “We believe in selecting a Distributor who reflects Trane’s commitment to environmental sustainability with a strong focus on understanding and delivering value to customers, and the region they operate in. We are pleased to begin this journey with JMG Limited and will be very proactive in working with them to deliver the Trane promise of energy efficiency and reliability to the region”.

Mr. Ramzi Dabaghi, Head of Power Solutions & HVAC Division Manager, JMG Limited, said, “The HVAC industry is a very large industry that covers system design, operation and maintenance. Like most industries within the construction business, the HVAC sector has been gradually growing lately, with the end user spending substantial business expansion plans and supporting new enterprises in the industry. Our interest in the HVAC business arises after we have monitored the increasing market trend and identifying the areas/businesses that will benefit from our service. Add to this our concern to reduce energy consumption and to build a healthier environment.

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we are confident enough that the JMG Limited – Trane partnership in the HVAC sector will succeed and develop rapidly.

JMG Limited has a dedicated team of professional engineers (Mechanical and Electrical), trained by Trane and specialized in Total engineering solutions and turnkey projects to deliver reliable and immediate results.

Thanks to the vast expertise and experience of our team, our aim is to provide the optimum solution, irrespective of category and scope of supply. We are always committed to provide high reliability with low maintenance, maximum safety and great flexibility. With the expertise and experience of our team and the name Trane and not to forget the quality and innovation of Trane products, we simply offer the best solutions.

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Funke Akindele Announces Dettol Clean Naija’s National Handwash Challenge On Silverbird TV

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L-R: Winifred Okolo; Today On STV host, Funke Akindele; Nigerian Actress and Dettol Brand Ambassador, Cassandra Uzo-Ogbugh; Brand Manager, Purposeful Marketing, Reckitt Benckiser at Silverbird TV recently.
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Funke Akindele was recently hosted on the popular Silverbird TV breakfast show, ‘Today on STV’, where she discussed her career, motherhood and her CSR work on promoting hygiene and good health in Nigeria through Dettol’s Clean Naija Initiative. The Jenifa star also spoke on the need for better general health practices including daily hand hygiene as this singular act can prevent the transmission of illnesses like diarrhea, making families and communities healthier and happier.

The Clean Naija initiative, which was created to achieve a cleaner nation through the continuous habit of proper handwashing and personal hygiene, has so far been achieving its mandate, through mass awareness, social education and provision of infrastructure towards proper hand hygiene habits.

When asked what her partnership with Dettol means for Nigerians, Funke Akindele said, “Our goal is to get 20 million clean hands by the end of year 2020, and as such, I’d personally champion the promotion of proper personal hygiene in Nigeria. This is possible because, Dettol has products such as the antiseptic liquid, the anti-bacterial soap and hand sanitizer which will be instrumental to the achievement of our mandate.”

She rounded up her time on the show by announcing the start of the National Handwash Challenge which is a social campaign that will help raise the consciousness of Handwashing amongst active Nigerians.

L-R: Winifred Okolo; Today On STV host, Funke Akindele; Nigerian Actress and Dettol Brand Ambassador, Cassandra Uzo-Ogbugh; Brand Manager, Purposeful Marketing, Reckitt Benckiser announcing the National Handwash Challenge during the show on Silverbird TV recently.

To get the conversation going, she asked people to join the challenge by taking a picture or video whilst washing their hands, after which they’d post it on social media, tag @DettolNigeria and @Cleannaijang, and also tag 5 of their friends to do the same using the hashtag #DettolCleanNaija and #NationalHandwashChallenge

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Youth Population to Drive Strong Subscriber Growth Across Sub-Saharan Africa- GSMA Study Revealed

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 Sub-Saharan Africa will remain the world’s fastest-growing mobile region over the coming years as millions of young African consumers become mobile users for the first time, according to a new GSMA study.

 

It reveals that more than 160 million new unique mobile subscribers[i] will be added across the region by 2025, bringing the total to 623 million, representing around half of the region’s population, up from 456 million (44 per cent) in 2018. Subscriber additions will be concentrated in high-growth markets such as Nigeria and Ethiopia, the report says.

 

“A new generation of youthful ‘digital natives’ across Sub-Saharan Africa are set to fuel customer growth and drive adoption of new mobile services that are empowering lives and transforming businesses,” said Akinwale Goodluck, Head of Sub-Saharan Africa, GSMA.

 

“With mobile technology at the heart of Sub-Saharan Africa’s digital journey, it is essential for policymakers in the region to implement policies and best practices that ensure sustainable growth in the mobile industry, and enable the transition to next-generation mobile networks.”

 

The study calculates that the mobile ecosystem across Sub-Saharan Africa generated almost $150 billion in economic value last year – equivalent to 8.6 per cent of the region’s GDP. It is forecast to generate almost $185 billion (9.1 per cent of GDP) by 2023.

 

The 2019 Sub-Saharan Africa edition of the GSMA’s Mobile Economy report series is being published at the ‘Mobile 360 – Africa’ event being held this week in Kigali, Rwanda. The new report also reveals that:

 

  • Around 239 million people, equivalent to 23 per cent of the region’s population, use the mobile internet on a regular basis.
  • Smartphones accounted for 39 per cent of mobile connections[ii] in Sub-Saharan Africa in 2018, forecast to increase to two thirds of connections by 2025.
  • 3G will overtake 2G to become the leading mobile technology in Sub-Saharan Africa this year.
  • 4G will account for almost one in four connections by 2025. However, 4G uptake is being dampened in some markets by the high cost of 4G devices and delays in assigning 4G spectrum.
  • The region’s mobile operators are increasing investment in their networks and are expected to spend $60 billion (capex) on network infrastructure and services between 2018 and 2025 – almost a fifth of this total being invested in new 5G networks.
  • Sub-Saharan Africa’s mobile ecosystem supports around 3.5 million jobs, directly and indirectly, and last year contributed almost $15.6 billion to the funding of the public sector through consumer and operator taxes.

The new report ‘The Mobile Economy, Sub-Saharan Africa 2019’ is authored by GSMA Intelligence, the research arm of the GSMA. To access the full report and related infographics, please visit: https://www.gsma.com/r/mobileeconomy/sub-saharan-africa/

 

 

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