With so much talk about the IGR by the Ebonyi State Government, i decided to do a little digging on the subject. Here are my findings
Rankings: 7
Ebonyi’s Internally Generated Revenue averages N913.37million monthly,
while its average monthly Personnel costs are almost double that, at N1.8bn.
In 2015, the State so far receives a monthly average of N2.6bn from the
Consolidated Revenue Fund (or FAAC allocation), putting its total average
monthly revenue at N4.17bn.
This is only just sufficient to cover Ebonyi’s Recurrent Expenditure budget
plan for 2015, which calls for a spend of N39.99bn per annum, or N3.33bn
monthly, implying that little to nothing is left for other priorities in the State.
The State recently issued a N9.340 billion bond to refinance an existing loan
with United Bank Africa – a loan which was taken to part-finance Ochudo City
and International Market, Abakaliki; Part-financing of International Market,
Abakaliki and for Electrification and accessories for the Ochudo Secretariat.
Ebonyi State taking N1.8bn debt to finance the electrification of a government
secretariat defeats the argument that debts should be self liquidating.
The State will need to effect a total makeover of its Internally Generated
Revenue mechanisms, significantly cut its Overhead costs and structure all
debt obligations by ensuring reduced lending rates are a priority. Ebonyi
should also be looking at broadening its potential growth areas including the
manufacturing sector, and its rice industry.
Quick Review
The Breakdown
Average Monthly Revenue (Jan - Jul 2015) N4.17bn
1. FAAC Allocation N2.64bn
2. Value Added Tax (VAT) N609.54m
3. 13% share of Derivation N/A
4. Internally Generated Revenue (IGR) N919.37m
Monthly commitments (Recurrent expenditure) N3.33bn (Good Indicator)
Total average monthly revenue N4.17bn
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