About 25 states in Nigeria suffered a shortage fall in internally generated revenue and struggle with cash crunch in the first quarter of 2023, findings by The PUNCH have shown.
A breakdown for 2023 showed that the states received N244.98bn in January, N236.46bn in February, N232.13bn in March.
FAAC gets money from oil revenues and related taxes, revenues generated from the Nigerian Customs Service trade facilitation activities, company income tax, any sale of national assets as well as surplus and dividends from State Owned Enterprises. “So, Nigeria became more focused on sharing revenues than on the fundamental way of governing, which is the production and taxing earned revenue. Whenever there is no revenue to share, the States are in complete trouble and they become bureaucracies that are unable to manage themselves because they are dependent. This is not the way they should function.”earlier reported that at least eight states failed to attract any foreign investments but piled up N194.09bn debt between 2019 and 2022.
He added that the twin factors of a good investment climate as well as a good perception of that climate would have to be present for investors to develop the confidence to bring investments into the country. According to the Washington-based bank, the increase in debts will be due to low allocation from the Federation Account, which will likely weaken the fiscal condition of the states.
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