NGF claims states’ IGR jumped to N1.67tr from N1.31tr in two years
Internally Generated Revenue (IGR) of the 36 states of the federation rose from N1.31 trillion in 2019 to N1.67 trillion in 2021.
Chairman of Nigeria Governors’ Forum (NGF) and Ekiti State governor, Kayode Fayemi, made the disclosure, yesterday, at a parley with Commissioners of Finance.
He said: “We have seen total IGR of states grow from N1.31 trillion in 2019 to N1.67 trillion in 2021 and the share of IGR (as percentage of total recurrent revenue) grow from 31 per cent in 2019 to 35 per cent in 2021.”
Fayemi, however, stressed: “While this is good progress, we must not lose sight of the need to sustain and advance the momentum of reforms, considering the decline in Federation Allocation Account Committee (FAAC) receipts.”
He advised that “renewed effort must take into consideration the emerging dynamics surrounding private income in Nigeria today, including the devaluation effect of rising inflation rate, structural transition in employment, business dealings and investments, driven by the evolution of technology.”
Governors had, in 2019, resolved to embark on a deliberate tax reforms for efficiency and effectiveness. The reforms, according to Fayemi, were focused on “ending multiple taxation; professionalising and modernising revenue services; embracing a taxpayer-centric culture that eases taxpayer compliance and strengthens the existing social contract.”
He noted: “This pact birthed the State Action Plan for Revenue Generation (SAPRG), whose implementation progress we will be examining today, with the objective of underscoring what has worked and what we need to do better to foster an enabling tax environment and administration that allows us to optimise our revenue potential as sub-nationals.”
The Ekiti governor further charged states to go beyond laws and regulations that have been passed and begin to respond to fast-changing tax environment.
He added: “We recognise the need to support our internal revenue services and continue to empower them with necessary political support and financial resources required for them to execute their mandate effectively.
“We remain committed to keeping this pact. However, mutual accountability must exist. To whom much is given, much is expected.”