The Lagos state government recorded an internally generated revenue (IGR) of N301.19 billion in 2016, according to a report by the Nigeria Extractive Industries Transparency Initiative (NEITI).
This is an approximate increase of N33 billion from the 2015 figures and beating the IGR of 33 states put together.
Taking away the IGR figures of Delta(N44.89bn), Ogun (N56.3bn) and Rivers (N82.1bn), the Lagos state IGR is over a billion naira more than the combined IGR of the other 33 states of the federation.
According to the NEITI report, “IGR is very low in most states and it is only in two states – Lagos and Ogun – that IGR is higher than FAAC allocations. The figure shows that total revenue by itself cannot fund states budgets,”.
NEITI said the three tiers of government shared N5.121 trillion through 2016 — a decline from 2015 figures. This might be a result of the falling oil prices and calls for a need for the diversification of the economy.
There were year-round falls in disbursements. Q1 2016 saw total disbursements of “N1.132 trillion as against N1.648 trillion in Q1 2015, a decline of 31.2% ”.
“Total disbursements fell by 26.9% from N1.241 trillion in Q2 2015 to N906 billion in Q2 2016. There was a further decline in Q3 when total disbursements dropped by 7.8% from N1.887 trillion in 2015 to N1.738 trillion 2016.
“However, total disbursements increased in Q4 by 8.8% from N1.233 trillion in 2015 to N1.343 trillion in 2016.”
The federal government received a total of N2.08 trillion from the federation account in 2016, which represents a drop of 19.9% of the total N2.6 trillion received in 2015.