The National Bureau of Statistics (NBS), yesterday published a report indicating that states unable to pay workers’ salaries have not been able to grow their internally generated revenue (IGR) significantly in recent years. This is partly responsible for adverse budgetary performance in 2014.
Statutory allocations to all the tiers of government had fallen by over 30 percent in 2014 due to fall in the global prices of oil, Nigeria’s main revenue source. This, together with low IGR hs crippled the finances of the affected states.
Out of the affected states, Ekiti was the best performing in terms of increase in IGR in 2014 at over 58 percent rise from N2.33 billion in 2013 to N3.46 billion in 2014. 15 of the other 17 states owing workers between two to seven months salaries, had either marginal increases or outright decline in their IGR performance in 2014. The NBS report said Kogi and Osun states increased their IGR marginally.
In 2014, Kogi increased its IGR by over 25 percent to N6.56 billion from N5.02 billion in 2013 while Osun increased its IGR to N8.51 billion from N7.28 billion in 2013. Osun’s case is therefore surprising as it has one of the worst cases of salary arrears.
Ten of the states that owe salaries managed to increase their IGR by a paltry 1.2 to 2.3 percent against over 30 percent decline in their statutory allocations. This shows clearly while they have struggled.
According to the NBS Akwa Ibom and Rivers which are amongst top ten beneficiaries of statutory allocations could only increase IGR by paltry 1.8 and 1.2 percent respectively while Imo and Oyo managed to do about 7.0 percent increases.
Bauchi and Benue States are two of the states in outright negative performance in their 2014 IGR, according to the NBS report.
The states are asking the federal government to bail out of the precarious situation they have found themselves.