YBTC NEWS—The Annual State Viability Index (ASVI) published by Economic Confidential has revealed some Nigerian states that can survive without the monthly federal allocations.
The ASVI measured the viability index of states using each state’s Internally Generated Revenue (IGR) as a percentage of its federal accounts allocation for the year.
Lagos, Rivers, Ogun, Kaduna, Oyo and Anambra can survive without federal allocation.
It was gathered that states with an IGR of less than 10% of their total receipts from the federal allocations are considered insolvent. Below are states listed as those that can survive without federal allocation: Lagos Rivers Ogun Kaduna Oyo Anambra
According to the report, states listed here can survive without federal allocation because they generate high revenues locally.
For instance, Lagos in 2020 collected a federal allocation of N299 billion but generated N418 billion locally (139%) Also, Rivers state which generated an IGR of N117 billion collected N198 billion as federal allocation (58%).
As for Ogun, the southwestern state made N50 billion IGR compared to the federal allocation of N88 billion (57%) it received.
Kaduna state generated N50 billion locally while its federal allocation was N124 billion (40%).
Oyo state with an IGR of N38 billion got N127 billion as federal allocation (29.7%) while
Anambra generated N28 billion compared to its federal allocation of N94 billion (29.6%).