Saturday, August 3, 2019
Advertisement

SHOCKER: These 28 states cannot fund their 2019 budgets with two-year revenue

SHOCKER: These 28 states cannot fund their 2019 budgets with two-year revenue
May 12
21:31 2019
Advertisement

Data made available by the Nigeria Extractives Industries Transparency Initiative (NEITI) has shown that 28 states would be unable to fund their 2019 budgets from revenue realised in 2018 and 2017.

The data was made available in the NEITI quarterly review.

The eight states that would be able to fund their 2017 and 2018 revenue are Enugu, Kaduna, Delta, Yobe, Lagos, Kano, Nasarawa and Rivers.

The 28 states that would not be able to fund their budgets are Abia, Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Ebonyi, Edo, Ekiti, Gombe, Imo, Jigawa, Katsina, Kebbi, Kogi, Kwara, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Rivers, Sokoto, Taraba , Zamfara

According to the report, only Yobe can fund its 2019 budget from the disbursements it received from the federation accounts allocations committee (FAAC).

A drop in oil prices also affected FAAC disbursements as the three tiers of government were unable to share N2 trillion in the first quarter of 2019 as was the trend since the second quarter of 2018.

“Oil prices experienced a downward spiral from November 2018. Oil prices were above $80 per barrel in October 2018 but by December 2018 they had dropped to $57 per barrel,” NEITI said.

“Average oil price for the first quarter of 2019 was $63.17 per barrel. The average oil price for the year 2018 was $71.06 per barrel. Thus, oil prices have been considerably lower in the first three months of 2019 than they were in 2018.”

NEITI described the budgets of states as being “largely too optimistic” adding that there are wide disparities in the net FAAC disbursements to states.

“This review showed that budgets for states are largely too optimistic. There is no state whose net FAAC disbursements in either 2017 or 2018 can adequately finance their budgets for 2019,” it said.

“This highlights the critical gap in the ability of FAAC disbursements to finance state budgets and brings into focus the importance of internally generated revenue (IGR). It also shows the inevitability of borrowing by states.”

RECEIVE ALERTS FROM THECABLE

BBM CHANNEL C0038F78B
WHATSAPP 08113975334
TWITTER @thecableng
Copyright 2019 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Advertisement

Social Comments

1 Comment

  1. Shai
    Shai May 14, 07:00

    Not totally correct. Ogun is 2nd highest in IGR

    Reply to this comment

Write a Comment

Your email address will not be published.
Required fields are marked *

*

Advertisement
Advertisement
Advertisement

Exchange Rates

August 01, 2019USDGBPEUR
INTERBANK306397354
LAGOS362475413
KANO361474413
PH361475412
ABUJA362476413
NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement