Internally Generated Revenue (IGR) in Nigeria: A Panacea for State Development

Internally Generated Revenue (IGR) in Nigeria: A Panacea for State Development OSENI Michael * * [Department of Accountancy, The Polytechnic, Ibadan, Nigeria], [osenimike@gmail.com], [+2348028095423] 2013. Oseni Michael. This is a research/review paper, distributed under the terms of the Creative Commons Attribution- Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/, permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. JournalsBank.com (2013) ISSN 2220-9425

Internally Generated Revenue (IGR) in Nigeria: A Panacea for State Development OSENI Michael Abstract The internally generated revenue (IGR) has taken the second position in sources of revenue when Nigeria put heavy reliance on oil. Many states and local governments depend on monthly statutorily allocations from the central vault to carry out their businesses. Studies were carried out on the proportions of internally generated revenues to total revenues of states for a five-year period (2007-2011). Data sourced from the annual reports of Central Bank of Nigeria for the same period were used. Descriptive statistics was used and it was found that states getting additional revenue from the statutory allocations as derivation have lower proportions of IGR to their total revenues than some states. States where insurgency had been threatened with have the lowest IGR for the period. Dependence on the statutory allocations by the states does not necessarily translate to good dividends on democracy as internally generated revenues can be used to develop the states. The paper recommends among others that right parameters should be instituted in order to identify the tax payers and the types of businesses they are engaged in. So also other sources of revenues like stamp duties, levies and fees should be enhanced. Keywords: Revenue Mobilization Allocation and Fiscal Commission (RMAFC), State Joint Local Government Account, The Federation Account, 13% derivation, Statutory allocation. 1050

1.0 INTRODUCTION Since the early 1970s when oil became the major source of Nigeria revenue, other sectors of the economy which had put the three regions on the high pedestal of financing had been nose diving. In the first republic, derivation was the principle used in allocation of revenue. There were four regions namely- North, East, West and Mid West. Each region was then known for its export oriented agricultural produces. The North was known for its groundnut, cotton and hides and skin; the East for its palm produce and coal; the West for its Cocoa and the Mid West for its rubber and timber. That was then when the resources were mainly used for individual regions and the balance posted to the federal government. When the 1980s witnessed the glut in the economy and things were pretty difficult for the all tiers of government, little was done to reverse the trends. The belief was that there was in existence an inexhaustible well of money/gold where things are always available. The military regime which was an aberration and dictatorial in nature had just spent few years of its 13½years of its first stanza was just busy dolling out funds to its regional and the state governments which were clearly appendages of it. The pogrom and its eventual civil war disorganized people, most especially those of eastern extractions from their businesses. In prosecuting the civil war, no penny was borrowed by the federal government. The citizenry were issued bonds which were paid back few years after the end of the war. The three Rs- Reconciliation, Reconstruction, and Rehabilitation program was followed by the Arab- Israeli war of 1973 which led to shortage of oil in the international market. The United States of America supported the Israeli in prosecuting this war. Arab members of the Organization of Petroleum Exporting Countries (OPEC) responded to this US support by organizing an oil embargo against the United States. This made Nigeria being a member of the Organization of the Petroleum Exporting Countries (OPEC) to supply far more than its fair quota during that period. That was the time of the oil boom. It was during this oil boom period that Udoji Review Commission recommended increase in the salaries of public servants. It provided bountiful arrears to the working class in 1975 and the prices of commodities which were unprecedented in the country were witnessed. The purchasing powers of the working class were increased. Though it was argued that the arrears were not part of the initial recommendation of the salary review panel but it was provided because of the availability the of the oil money. The second Black and African Festival of Arts and Culture (FESTAC 77) which by world standard, a classic in its own class, was held in 1977. Estates were erected and other infrastructural facilities like roads and bridges were 1051

constructed. The country returned to democratic dispensation in 1979 when Sheu Shagari was elected as the first executive president of the country. The presidential system of government which hitherto was alien to the country was found to be more expensive than the parliamentary system of government because of its winner takes all syndromes. The euphoria of oil boom which the people had been used to was difficult to be taken away from the mind of the people - which invariably means the government. The imminent recession of 1981 made Awolowo to issue a proclamation of emergency that the ship of the Nigerian state was heading for the rocks unless the captain of the ship and his crew quickly steered it away. Measures to redirect the affairs of the state as it was being done in other lands due to the fact that the price of oil would in a matter of not a distant time become $10 per barrel were not forthcoming. The ruling government sponsored myriads of campaign to smear the reputation of the so called leader of opposition as a prophet of doom. Not quite six months later, the die was cast and the imminent thing happened. The world price of oil plummeted and this seriously led to cut-saving measures which were named as austerity measures. When the civilian government was sacked on the eve of 1983, the austerity measures was continued unabated and many workers, especially in the civil service lost their jobs and the belt was more tightened. The revenue from oil later picked up and oil producing areas succeeded in getting 13% of the oil revenue mined from their areas. This was as a result of insurgency in the Niger Delta which was the goose that lays the golden egg. The insurgency made mining operations very difficult. To pacify the region, a 13% derivation was approved to the region from the total revenue from oil. This share of 13% in respect of derivation far exceeded the actual revenues accruable to some of these states. Revenues accruing to states were mainly from the federation accounts and little efforts are made by many of these states to garner their own internally generated revenues. It has now become ritual to have monthly meeting where Revenue Allocation committee with the representatives of all the states in attendance to share the proceeds of the oil revenue accruing to the federation account. This, according to Agu (2011), has partly helped government officials to pay little attention to growing the economic base that would help them to become independent. National budgets are prepared having oil bench price as the principal budget limiting factor. The US which had been the major exporter of Nigerian oil has started to be exporting oil from its reserves to other nations. Other African countries are now in the league of oil producing nations. What would happen to Nigerian oil when these countries are now selfsufficient and no longer import oil from Nigeria? 1052

There are states that have more than 85% of their revenue generated from the federally allocated sources without any effort to have alternative source of revenue. What are these states with huge resources doing with these revenues? Are other states performing better in terms of infrastructural development than these oil producing states? The need for states to harness ways of generating internally generated revenue other than the revenue from oil will be the focus of this paper. The rest of the paper is then divided into four sections. Conceptual framework and literature review is in chapter two; section three is on research methodology while section four is on findings and discussion. Section five summarizes, concludes and recommends. 2.0 CONCEPTUAL FRAMEWORK AND LITERATUE REVIEW 2.1 Conceptual framework 2.1.1 Statutory allocation The 1976 local government reforms made provisions for a fixed proportion of statutory allocation of revenue from the central government to local government councils. This was as a result of recommendations of the Aboyade Revenue Commission of 1977. The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) that is charged with the responsibility of allocating revenue to the three tiers of governments was established to also monitor the accruals to and disbursement of revenue from the Federal Account and reviewing, from time to time, the revenue allocation formulae to ensure conformity with changing realities. Presently, the sharing formula stipulates that the federal government is to be given 52%, the states shall go with 26% while the local governments are given 20%. This is excluding the 13% derivation which the oil producing states have to share. 2.1.2 Internally generated revenues in local government councils The constitution of the Federal Republic of Nigeria 1999 CAP C23 L.F.N. 2004 specifically states the types of internally generated revenue that are exclusive to the local government councils. Prominent among these revenues are: (a) collection of rates, radio and television licenses; (b) establishment and maintenance of cemeteries, burial grounds and homes for the destitute or infirm; (c) licensing of bicycles, trucks (other than mechanically propelled trucks), canoes, wheel barrows and carts; (d) establishment, maintenance and regulation of slaughter houses, slaughter slabs, markets, motor parks and public conveniences; (e) construction and maintenance of roads, streets, street lightings, drains and other public highways, parks, gardens, open spaces, or such 1053

public facilities as may be prescribed from time to time by the House of Assembly of a State; (f) naming of roads and streets and numbering of houses; (g) provision and maintenance of public conveniences, sewage and refuse disposal; (h) registration of all births, deaths and marriages; (i) assessment of privately owned houses or tenements for the purpose of levying such rates as may be prescribed by the House of Assembly of a State; and (j) control and regulation of - Out-door advertising and hoarding, movement and keeping of pets of all description, shops and kiosks, restaurants, bakeries and other places for sale of food to the public, laundries, and licensing, regulation and control of the sale of liquor. 2.1.3 State Joint Local Government Account Section 162 (6) of the constitution of the Federal Republic of Nigeria 1999 CAP C23 L.F.N. 2004 stipulates that each State shall maintain a special account to be called "State Joint Local Government Account" into which shall be paid all allocations to the local government councils of the State from the Federation Account and from the Government of the State. The amount standing to the credit of local government councils of a State shall be distributed among the local government councils of that State on such terms and in such manner as may be prescribed by the House of Assembly of the State. 2.1.4 Government Revenue Revenue, according to Section 162 subsection 10 of the constitution of the Federal Republic of Nigeria 1999 CAP. C23 L.F.N. 2004 means any income or return accruing to or derived by the Government of the Federation from any source and includes - any receipt, however described, arising from the operation of any law; any return, however described, arising from or in respect of any property held by the Government of the Federation; and any return by way of interest on loans and dividends in respect of shares or interest held by the Government of the Federation in any company or statutory body. A special account to be called the Federation Account shall be maintained by the Federal Republic of Nigeria and all revenues collected by the Government of the Federation except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja shall be paid into that account. 2.2 Literature Review Internal revenue generations were fully maximized before the 1976 Local Government reform. Local 1054

government functions were dully discharged with little or nothing as assistance from the federal government. But with the introduction of statutory allocations after the 1976 reform, the internal revenue generation as a major means of financing local government was abandoned in preference to the revenue from the federal statutory allocation. This, according to Atakpa, Ocheni and Nwakwo (2012) was principally identified as the bane of internal revenue generation at local level of government. They concluded that unless the local governments look inwards to maximize their internal revenue sources it cannot be financially self-reliant. The Revenue Act of 1981 made it possible for local government councils to partially dispense with their traditional sources of revenue which are internally generated. The oil boom and a one-time Head of State of Nigeria s statement that not finance, but executive capacity, was the major bottleneck to Nigeria s economic growth and development, made this to be. Before that time the percentage of internal revenue generated to the total revenue was as high as 85% for some local governments, between 1962 and 1983. With the decline in oil sales it became imperative for internally generated revenue to stage a comeback to its preponderance position. The reliance on statutory allocation to perform basic functions by some states in Nigeria is total. Many states rely almost exclusively on this handout from the federation account as basic operations cannot go on without the monthly allocations. This has partly helped government officials to pay little attention to growing the economic base that would help them to become independent (Agu, 2011).He went further to note that modern technology is yet to be incorporated in IGR planning and collection approaches. Officials rely mainly on physical visitation, memos and letters to notify tax payers. The taxes collected are mainly in cash thereby creating opportunities for embezzlement. These shortcomings often lead to multiple payments of tax and harassments. The internally generated funds in local government councils are mainly used to offset the cost of governance by these third tiers of government. The cost of governance has gone up astronomically that capital projects are insignificant in proportion to recurrent expenditure. The central government regularly gives enough funds to these third tiers of government in order to provide infrastructural development to the citizens in the local areas, but according to Khalil and Adelabu (2011), these public revenues are being mismanaged by political leaders and local governments officials. In their findings, less than 5% of the statutory allocations accruing to local governments under study were being expended on infrastructural development, while more than 10% were used for personnel expenditure. The choice of internal revenue collected by the states and local government councils do not help 1055

matters. This lopsidedness according to Egonmwan (1984), was compounded by the fact that the state governments have acquired the more lucrative, elastic and collectable revenue sources (e.g. water rates, motor vehicle license fees, building plan fees) leaving local governments with taxation with low ceilings, revenue which are administratively and politically difficult to exploit in an environment where the vast majority of the people are poor, self employed and dispersed in rural areas. Coupled with this is the attitude of tax rate collectors in local governments which falls short of expectation. Fraud and embezzlement were rampant in all revenue centers. In a study of how internally generated revenues of some selected local governments in Ogun state can be boosted, it was found out that rates, fines, fees, licenses and rent sources significantly influenced internally generated revenue (Olusola, 2011). Banabo and Koroye (2011) were of the opinion that Nigerian economy has to be diversified from a single oil revenue sustaining economy to a multiple revenue economy. The dependability on taxation alone by federal, states, and local governments may not be the way out of solving the consistently increasing capital and recurrent expenditures of the governments. They went further to assert that increasing cost of governance has forced some states to formulate other means of improving their revenue base due to dwindling oil revenue in 2009. Many states are not enhancing their capacities to collect or expand their tax bases. Every year the same figures were projected as total internally generated revenue in their budgets while their personnel costs are increasing. As a result of this, without any statutory revenue being collected from the federation account, personnel costs will remain unpaid and these states are dependent states which are not economically viable for independent existence (El Rufai, 2012). Contrary to concerns in some quarters that some states of the country are glorified local governments, Omoigui-Okauru (2012) is of the opinion that all states of the federation have potentials to survive on tax revenue if the right parameters are set out for them. This will be a sharp contrast to the present arrangement where virtually all state administrations depend on monthly Federal Government statutory allocations for the implementations of their capital and recurrent expenditures programmes. She opined that it was against this background that new amendments to the tax laws have clearly defined what could be recognized as tax in the various states of the federation. She further asserted that states are often considered poor in the areas of internally generated revenue because most of them don't have a comprehensive data on who should pay tax or the key economic activities that can generate tax income, stressing this has always affected the revenue flow from internally generated sources. If 1056

government can identify who the tax payers are and what their businesses are higher taxes would be generated. Naiyeju (2011) is of the opinion that states and local governments have continued to demonstrate total lack of interest in improving their lots towards improved revenue generation by preferring to use consultants to administer taxes, rather than modernising their tax systems for enhanced revenue yield, and less dependency on allocation from the Federation Account. The preference for tax consultants in the collection of revenues negates the ongoing reforms in the country s revenue generation system. The causes of poor internally generated revenue according to Ojo and Owojori (1998) are lack of adequate resources such as vehicles and personnel for Mobilizing IGR at local government levels, the potential sources of IGR at each local government not being adequately tapped and the potential payers of taxes, rates and charges not willing to pay due to biases and other personal reasons. 3.0 RESEARCH METHODOLOGY 3.1 Data Structure and Technique of Analysis Secondary data were used for the purpose of this study. Data were sourced and collected from relevant materials such as textbooks, Newspapers, Journals and other official documents. Data in respect of states governments finances in the Annual Reports of Central Bank of Nigeria from 2007 to 2011 were used. The five year trend was chosen mainly because the present administration of the central government could arguably be said to have started from 2007 when President Jonathan was the vice-president of the Federal Republic of Nigeria. The proportions of internally generated revenues to the total revenues for states were evaluated under this study. Descriptive techniques such as summary statistics and trend plot were employed for analyzing the sourced data as shown in the appendices. 4.0 FINDINGS AND DISCUSSIONS Total revenue collected by all the states of the federation for the period of 2007 to 2011 was N15.493tr. Out of this amount, N2.091tr was internally generated. This represents 13.5% of the total revenue. Lagos has the highest proportion of internally generated revenue to the total revenue which stands at 36.7% while Bayelsa has only 3.3% of its revenue as its internally generated. In absolute figure, Lagos state has the highest IGR of N714.3b while Yobe state has the lowest (N6.7b) (Appendix D). In respect of geo-political zones, the percentages of IGR to total revenue during the period shows that South West has 26%, North West 11.6% South East 10.9%, North Central 9.8%, South South 9.5%, % and North East 6.9%. 1057

The South West accounted for 44.3% (N926.6bn) of the total internally generated revenue of all the geopolitical zones. The total internally generated revenue of the South West between 2007 and 2011 which stands at N926.6b was more than what the four zones of North West, North East, South East and North Central put together had during the same period (N675.5b). Specifically, Lagos state s internally generated funds are more than that of North West, North East, North Central and South East geopolitical zones put together (24 states). (See appendices A, B and C). The internal revenue generations of many states are far lower than what they should be. With the clear exception of Lagos state, all others depend on the statutory allocations to run their states. The assumptions that Kano, Onitsha and Kaduna are generating enough internal revenue are far from reality. Sokoto state had 21.9% of its total revenue as internally generated for the period. Its IGR for 2008 and 2009 stood at N69.6b. This trend could not be continued as the combined internal revenue for 2010 and 2011 was a paltry N6.2b. The internal revenue generation and collection in states are far below what it should be. According to (Atakpa et al, 2012) poor communication network, particularly in the riverine areas of the country, lack of commitment on the part of some revenue collectors some of whom are down-right dishonest and defective revenue collecting machinery are responsible for poor revenue collection. The use of tax consultants has helped the Lagos state government to boost its tax collection. The monthly internally generated revenue which wasn600 million in 1999 had risen to N23 billion in 2013. The increase in the IGR was possible through the efforts of accountants in the public service by blocking loopholes (Fashola, 2013). Projects that will benefit the masses are easily carried out when the IGR is reasonably substantial. The Bus Rapid Transit system (BRT), the aerial cable car transport system and the light rail system are some of the projects being executed by the Lagos state government. The light rail project being embarked upon is from the internally generated revenue (Hamzat, 2012). The state government and its agencies, especially the Lagos Internal Revenue Service (LIRS) the administrative arm of the Lagos State Board of Internal Revenue Service (LSBIR) have been soliciting the support of Lagos City dwellers, corporate and individuals to support what the government is doing by voluntarily paying their taxes. The near absence of industries and federally established parastatals in some of these states accounted for very low internally generated revenues. In Bayelsa state which has the least percentage of IGR to its total revenue, most of the 1058

oil companies operating in the state do not site their headquarters in the state. Revenues which should boost the coffers of the state are paid to other states (Douglas, 2010). The North East geo-political zone has the lowest percentage of IGR to total revenue (6.9%). During the period under review, a total amount of N100.8 billion were collected as internal generated revenue. The governor of Borno state admitted during the presentation of 2013 budget to the State House of Assembly that insecurity has crippled the social and business activities of the state (Shettima, 2012). This was further corroborated by the Sheu of Borno that the economic activities of the state had collapsed due to the insurgency in the state (El-Kanemi, 2012). Many states despite the fact that resources to generate revenue are present, the internal revenue being collected remain the same or continue to decline from one year to another. IGR for Lagos state for 2008, 2009, 2010 and 2011 were N139.2b, N139.2b. N147.1b and N147.1b respectively. For Sokoto state, the IGR for 2008, 2009, 2010 and 2011 were N34.8b, N34.8b, N3.1b and N3.1b respectively. 5.0 SUMMARY, CONCLUSIONS AND RECOMMENDATION The paper comparatively analysed the amount of internally generated revenue (IGR) to total revenue of states in Nigeria for a period of five years (2007-2011). A total amount of N15.493tr was collected. Out of this amount, N2.091tr was internally generated. The result further shows that Lagos has the highest IGR of N714.3b while Yobe has the least (N6.7b). The South South has the highest total revenue of N5.126tr while that of the South East was N1.379tr for the same period. States that have the 13% derivative from the petroleum production except Rivers and Edo are not having high internally generated revenue in proportion to the total revenue. Lagos state which is a non-oil producing state is having about 36.7% of its total revenue as internally generated. The fact that the state is regarded as the commercial capital of the country having two major sea ports and nearly all the industrial activities in the country are based there justify the lead in IGR. The North East zone could not fare better may be due to insurgency in the region. It has an IGR of N110.8 billion which is the least during the period. Nevertheless, in terms of total revenue, it garnered N1.607tr which was higher than that of North Central (N1.547tr) and that of South East (N1.379tr) during the same period. The belief in many quarters is that it is the statutory allocations that can make a state perform its civic duties. States that have the 13% derivation allocated to are being looked upon to perform miracles. But the potentials of states are laid hidden within their territories. Lagos state that does not enjoy the extra 1059

allocation from oil is bountifully tapping revenue internally. The absence of good and vibrant informal sector coupled with few industries will cause internal revenue to be low. If the right parameters are set out like identifying the tax payers and the types of businesses they are engaged in, all states in the federation without exception can generate enough revenue without solely depending on the statutory allocations from the central government (Omoigui Okauru, 2012). If there is insufficient data on who should pay tax and the major activities that can generate tax, most states would not be able to maximise their tax potentials in revenue generation. The state boards of internal revenues should be strengthened so as to provide a one-stop shop for tax collection. Other sources of revenues like stamp duties; levies and fees collected by the state and local government should be enhanced. The use of information technology should be introduced so as to have a comprehensive data base for the tax payers. 1060

References [1] Agu, C. (2011) Fragile States! Why Subnational Governments in Nigeria Cannot Subsist on Internally Generated Revenue? The IUP Journal of Public Finance, Vol. IX, No. 1, pp. 25-53, February 2011 [2] Atakpa, M., Ocheni, S., and Nwakwo, B. C. (2012) Analysis of options for Maximizing Local Government internally generated Revenue in Nigeria, International Journal of Learning & Development ISSN 2164-4063 2012, Vol. 2, No. 5 www.macrothink.org/ijld 94 [3] Banabo, E., and Koroye, B. (2011) Stimulating Internally Generated Revenue in Nigeria: The Entrepreneurial Option Revisited European Journal of Social Sciences Volume 23, Number 4 (2011) pp 520-530 [4] Constitution of The Federal Republic of Nigeria 1999 CAP. C23 L.F.N. 2004, Functions of a Local Government Council, Fourth Schedule Government Printers, Abuja. [5] Douglas, A. (2010) Stimulating Internally Generated Revenue in Bayelsa State Retrieved fromhttp://pointblanknews.com/pbnpvst.html on Monday March 18, on Monday 18 February, 2013 [6] Ebelo, E. (2013) More Revenue Allocation Not Solution to Your Problems, FIRS Boss Tells States Retrieved from http://allafrica.com..201107150543.html on Tuesday March 5, 2013 [7] Egonmwan, J. A. (1984) Principles and Practice of Local Government in Nigeria. Benin City: S. M. O. Aka and Brothers Press. [8] El-Rufai, N. (2012) Anambra's budget of misplaced priorities Retrieved from www.thisdaylive.com/articles on Monday January 28, 2013. [9] Fashola, B. R. (2013) Lagos Mega Revenue (IGR) Now N23billion Monthly, Retrieved from www.osundefender.org on Monday January 28, 2013. [10] Hamzat, K. O. (2012) Light Rail; our plan is to move Lagosians around with ease by 2014. Retrieved from www.osundefender.org/%3fp%3d39914 on Tuesday March12, 2013. [11] Kanemi, A. (2012) Economic activities have been paralyzed in Maiduguri Retrieved from www.blueprinting.com/2012/03/economic-ac... on Tuesday January 8, 2013. [12] Khalil, S and Adelabu, S. A.(2011) Fiscal planning and local government administration innigeria: The quest for sustainable rural development, African Journal of Business Management Vol. 6(9), pp. 3482-3489, 7 March, 2012 Available online at http://www.academicjournals.org/ajbm DOI: 10.5897/AJBM11.2154 ISSN 1993-8233 2012 Academic Journals [13] Naiyeji, K. (2011) Tax consultants drain government s purse, 2011 Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) Members Retreat in Uyo, Akwa Ibom Retrieved from http://234next.com/csp/cms/sites/next/home/56779161/146- tax_consultants_drain_governments_purse_.cspon Thursday February 7, 2013. [14] Ojo, C. O., and Owojori, A. A. (1998) Mobilisation of Internally Generated Revenue in some selected Local Governments in Ondo state Retrieved from http://hdl.handle.net/123456789/2971 on Saturday December 22, 2012. [15] Olusola, O. O. (2011) Boosting Internally Generated Revenue of Local Governments in Ogun State, Nigeria(A Study of selected Local Governments in Ogun State)European Journal of Humanities and Social Sciences Vol. 8, No.1 (Special Issue), 2011 1061

[16] Omoigui-Okauru, I. (2012) No Nigerian State is Unviable, Retrieved from www.nigerianvoice.com on Monday January 28, 2013 [17] Shettima, K. (2012) Borno State 2013 Budget Retrieved from www.businessdayonline>news>politics on Monday March 11, 2013 1062

APPENDIX A South West Total Revenue &IGR (2007-2011) South West Revenue (N'bn) IGR (N bn) % Ekiti 201 15.9 7.9 Lagos 1944.6 714.3 36.7 Ogun 338.6 67.9 20.1 Ondo 472.2 35.5 7.5 Osun 256.2 38.2 14.9 Oyo 354.6 54.8 15.5 Total 3567.2 926.6 26.0 Average 594.5 154.4 26.0 Source: Central Bank of Nigeria 2007-2011 Annual Reports South South Total Revenue &IGR (2007-2011 South Revenue (N'bn) IGR (N bn) South % Akwa Ibom 1103.2 54.9 5.0 Bayelsa 728.5 23.7 3.3 Cross River 311.0 28.8 9.3 Delta 916.7 74.4 8.1 Edo 342.6 49.5 14.4 Rivers 1724.1 258.0 15.0 Total 5126.1 489.3 9.5 Average 854.4 81.6 9.5 Source: Central Bank of Nigeria 2007-2011 Annual Reports 1063

APPENDIX B South East Total Revenue &IGR (2007-2011) South East Revenue (N'bn) IGR (N bn) % Abia 390.1 70.2 18.0 Anambra 292.5 27.8 9.5 Ebonyi 183.8 9.4 5.1 Enugu 217.2 17.0 7.8 Imo 295.9 25.8 8.7 Total 1379.5 150.2 10.9 Average 275.9 30.0 10.9 Source: Central Bank of Nigeria 2007-2011 Annual Reports North West Total Revenue &IGR (2007-2011) North West Revenue (N'bn) IGR (N bn) % Jigawa 311.2 28.4 9.1 Kaduna 418.3 45.0 10.8 Kano 422.8 49.5 11.7 Katsina 226.6 13.2 5.8 Kebbi 235.7 17.8 7.6 Sokoto 382.0 83.6 21.9 Zamfara 268.8 25 9.3 Total 2265.4 262.5 11.6 Average 323.6 37.5 11.6 Source: Central Bank of Nigeria 2007-2011 Annual Reports 1064

APPENDIX C North East Total Revenue &IGR (2007-2011) North East Revenue (N'bn) IGR (N bn) % Adamawa 251.5 15.8 6.3 Bauchi 349.8 12.7 3.6 Borno 280.2 26.8 9.6 Gombe 283.3 35.8 12.6 Taraba 240.0 13.0 5.4 Yobe 202.4 6.7 3.3 Total 1607.2 110.8 6.9 Average 267.9 18.5 6.9 Source: Central Bank of Nigeria 2007-2011 Annual Reports North Central Total Revenue &IGR (2007-2011) North Revenue (N'bn) IGR (N bn) % Central Benue 296.5 27.2 9.2 Kogi 262.8 32.8 12.5 Kwara 278.9 37.8 13.6 Nassarawa 193.4 12.7 6.6 Niger 284.2 24.9 8.8 Plateau 231.8 16.6 7.2 Total 1547.6 152.0 9.8 Average 257.9 25.3 9.8 Source: Central Bank of Nigeria 2007-2011 Annual Reports 1065

APPENDIX D TOTAL REVENUE AND IGR FOR STATES IN NIGERIA (2007-2011) S/N STATES TOTAL REVENUE (N'bn) IGR (N bn) IGR AS % OF TOTAL REVENUE 1 Lagos 1944.6 714.3 36.7 2 Sokoto 382.0 83.6 21.9 3 Ogun 338.6 67.9 20.1 4 Abia 390.1 70.2 18.0 5 Oyo 354.6 54.8 15.5 6 Rivers 1724.1 258.0 15.0 7 Osun 256.2 38.2 14.9 8 Edo 342.6 49.5 14.4 9 Kwara 278.9 37.8 13.6 10 Gombe 283.3 35.8 12.6 11 Kogi 262.8 32.8 12.5 12 Kano 422.8 49.5 11.7 13 Kaduna 418.3 45.0 10.8 14 Borno 280.2 26.8 9.6 15 Anambra 292.5 27.8 9.5 16 Zamfara 268.8 25.0 9.3 17 Cross River 311.0 28.8 9.3 18 Benue 296.5 27.2 9.2 19 Jigawa 311.2 28.4 9.1 20 Niger 284.2 24.9 8.8 21 Imo 295.9 25.8 8.7 22 Delta 916.7 74.4 8.1 23 Ekiti 201.0 15.9 7.9 24 Enugu 217.2 17.0 7.8 25 Kebbi 235.7 17.8 7.6 26 Ondo 472.2 35.5 7.5 27 Plateau 231.8 16.6 7.2 28 Nassarawa 193.4 12.7 6.6 29 Adamawa 251.5 15.8 6.3 30 Katsina 226.6 13.2 5.8 31 Taraba 240.0 13.0 5.4 32 Ebonyi 183.8 9.4 5.1 33 Akwa Ibom 1103.2 54.9 5.0 34 Bauchi 349.8 12.7 3.6 35 Yobe 202.4 6.7 3.3 36 Bayelsa 728.5 23.7 3.3 Total 15493.0 2091.4 13.5 Source: Central Bank of Nigeria (2007-2011) Annual Reports 1066