States generate 28.95% increase in revenue for 2022
According to BudgIT’s 2023 State of States Report, released on Tuesday, the total revenue generated by the 36 states in Nigeria saw a significant increase of 28.95%, reaching N6.6 trillion in 2022. This figure reflects a substantial rise from the N5.12 trillion generated in the previous year.
The report highlights that the internally generated revenue (IGR) of the states also experienced growth, appreciating by 12.98% from N1.61 trillion in 2021 to N1.82 trillion in 2022. However, “the report notes that the IGR to GDP ratio remained relatively low at 1.01% during the period under review”.
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The cumulative expenditure of the 36 states amounted to N8.2 trillion, a 24.7% increase compared to the N6.5 trillion spent in 2021. As a result, the states faced a deficit of N1.6 trillion in 2022.
The report emphasizes the strengthened domestic revenue mobilization capability as reflected in the growth of the states’ IGR.
However, it also raises concerns about the relatively low IGR to GDP ratio, highlighting the need for further efforts in revenue generation and fiscal management.
The findings of BudgIT’s report provide valuable insights into the financial landscape of Nigeria’s states, contributing to a better understanding of their economic performance and challenges.