Dailynaijamode- Nigeria News, Nigerian Newspapers. Get the Latest News and Features at Daily Post – National, Politics, Entertainment, Metro, Sport & Opinions.
Home » Blog » Headlines » Hard Times Looms For State As Revenue Allocation Reduces
Headlines

Hard Times Looms For State As Revenue Allocation Reduces

There are strong indications that in the months ahead, state governments will face hard times with rising wage bills and dwindling revenues.

Investigations by correspondents showed in the last four months, states’ allocations from the Federation Account had been on the decline.

It was further learnt that efforts by state governments to shore up their internally generated revenues had not recorded the expected success as only two states were able to raise their IGRs above what they received from the federation account.

The Chartered Institute of Taxation of Nigeria, the Chartered Insurance Institute of Nigeria and the Chief Executive Officer, Economic Associates, Dr Ayo Teriba, in separate interviews with The PUNCH, said with the wage bill increase and the failure to raise internally generated revenues, there would be difficulties in the months ahead for states.

They called on the state governments to stop their wasteful spending and reduce their appointees, in order to get enough funds for key sectors such as education and health.

Since June, states’ allocations from the federation account have been on the decline. For the allocation in June, the 36 states got N201.15bn. In July, it declined to N190.38bn.

In August, states’ allocation went down to N188.925bn. In September, they got N186.816bn.

Investigations showed that allocations fell following deductions being made from their allocations to service loans and the repayment of the bailouts.

It was learnt that besides N162m, which is being deducted monthly from 35 states’ allocations for the N614bn bailout given to them last year, further deductions were being made from their funds

Loading...

Related posts

CBN to go tough on banks over loan to deposit ratio

dailynaijamode

Federal Lawmaker’s Daughter Sacked For Working With Fake Certificate

dailynaijamode

Festus Keyamo Calls Buhari The Slayer Of Corrupt, And Nigerians Are Reacting

dailynaijamode

Leave a Comment

//serconmp.com/afu.php?zoneid=2707231

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close