Five states in Nigeria do not have the capacity to function financially due to very low internally generated revenue, IGR.
The states are Katsina, Kebbi, Borno, Bayelsa and Taraba. The Federal government has branded them as ‘extremely poor.’
The alarm was raised Monday by the Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Elias Mbam, who noted that the Federation Account was currently over stressed by the unending demands of the three tiers of government, urging states to evolve creative ways of fattening their IGR if the strain on the federal purse is to reduce.
He made the disclosure while receiving an Annual States Viability Index (ASVI) from the Editor-in-Chief of the Economic Confidential, Yushau A. Shuaib in his office in Abuja.
Mbam said: “the annual ASVI report apart from providing a good source of information to the general public also has been identified as a source of information that would drive RMAFC on its mandate to encourage states of the federation to improve their Internally Generated Revenue.
“I have come to realize that Economic Confidential has become a household name and its reports that are factual and authoritative should be useful, especially in guiding states whose revenues keep dwindling so that they can improve.”
He said Rivers, Kaduna, Enugu, Kwara and Zamfara posted impressive IGR in 2019.