States record 20% rise in IGR in 2016

The Nigeria Governors’ Forum (NGF) on Tuesday disclosed in Abuja that the Internally Generated Revenues (IGRs) of most states in Nigeria rose by 20 per cent to N820.7 billion in 2016 despite significant contractions in federation transfers to them.
According to the Director General of the NGF, Mr. Asishana Bayo Okauru, who made a presentation at the launch of the Nigerian Tax Research Network (NTRN), the rise in states’ IGRs was occasioned by some reforms targeted at tax systems, minimising incidents of double taxation, remittance and collection systems, as well as automation of tax regimes in the states.
Okauru explained that contrary to reports that states in the country were mostly on negative growth trajectories as a result of low oil income and sharp drop in federation transfers, 23 states in the country had recorded positive growths within the period.
He explained that Akwa Ibom, Bauchi, Kano, Kwara, Ogun and Zamfara grew their IGR by over 50 per cent.
“Reform efforts have been designed to rationalise government expenditure and improve domestic revenue mobilisation in order to achieve fiscal sustainability. I must announce that at the sub-national level, we are already seeing good results.
“Although, states recorded significant contractions in federation transfers, domestic revenues grew by 20 per cent from N687.1 billion in 2015, to N820.7 billion in 2016 – this is compared to a three per cent contraction recorded previously,” said Okauru.