Ogun Names as One Of Six States Which Could Survive Without Federal Allocation
Ogun state has been named as one of the six most viable states in Nigeria.
Others are Lagos, Rivers, Kaduna, Kwara, Oyo and Edo States.
Economic confidential, made this known in its 2022 annual states viability index report.
Assistant editor of the publication, Zekeri Idakwo, announcing this during the public presentation of the report on Monday in Abuja, said the six states could survive without allocation from the federation account.
A breakdown of the report shows that Ogun received N113 billion from the federation account in 2022, but generated N120.6 billion revenue.
This represents 106 per cent of the allocation received by Ogun state.
Lagos remained number one with a total IGR of N651 billion compared to allocation of N370 billion which translates to 176 percent in the 12 months of 2022.
River’s state which generated N172 billion IGR compared to FAAC earnings of N363 billion representing 48 percent is regarded ASD the third most viable state.
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The report list six states which could not survive without federation account allocation as Bayelsa, Akwa Ibom, Katsina, Taraba, Yobe and Kebbi States.
Bayelsa was bottom of the list, having received N273bn and generating only N15.9bn, representing 5.81% of the allocations; Kebbi received N119bn and generated N9bn (7.67%); Katsina received N165bn and generated N13bn (7.90%); Akwa Ibom received N360bn and generated N34.8bn (9.66%); Taraba received N103bn and generated N10.2bn (9.91%); while Yobe received N105bn and generated N10.4bn (9.91%).
Idakwo stated that the states’ IGR could be improved “through aggressive diversification of the economy to productive sectors, rather than relying on the monthly Federation Account revenues that largely come from the oil sector”.
He added that the states may not be able to stay afloat outside the monthly allocations, noting that some of the states were unable to attract investments due to socio-political and economic crises including insurgency, kidnapping, armed banditry and herdsmen-farmers clashes.
