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Tag: IGR

  • Poly workers reject 50% IGR deduction by finance ministry

    Poly workers reject 50% IGR deduction by finance ministry

    The Senior Staff Association of Nigerian Polytechnics (SSANIP) has expressed disapproval of the recent circular regarding the 50% automatic deduction from Internally Generated Revenue (IGR) of Federal Government Owned Enterprises (FGOE) by the Ministry of Finance in line with the Fiscal Responsibility and Finance Act of 2020.

    The polytechnic workers noted that the inclusion of tertiary institutions would “inadvertently undermine the well-intentioned goals of the government.”

    SSANIP made its position known in a statement signed by its national president, Adebanjo Ogunsipe on Saturday, January 6, in Abuja.

    The workers therefore urged the federal government to exempt tertiary institutions from the policy.

    The union added that any deviation from “this stance would be detrimental to the already beleaguered education sector.”

    The statement reads: “The Senior Staff Association of Nigerian Polytechnics (SSANIP) issues this statement to express its strong disapproval of the recent circular regarding the 50% automatic deduction from Internally Generated Revenue (IGR) of Federal Government Owned Enterprises (FGOE), as directed by the Honourable Minister of Finance.

    “While we acknowledge and support the government’s initiatives to enhance internally generated revenues through appropriate policies, we find it necessary to voice our concerns regarding the inclusion of Tertiary Institutions (polytechnics, universities, and colleges of education) in this directive. We firmly believe that such inclusion would inadvertently undermine the well-intentioned goals of the Government.

    “It is crucial to emphasise that the revenues generated by these educational institutions primarily consist of service charges meant to supplement essential services provided to students, including hostel facilities, libraries, health services, sporting activities etc. However, these charges are insufficient to cover the costs of these services, leading to persistent pleas from various stakeholders for increased funding over the years.

    Read Also: IGR as benchmark for states’ economic viability

    “Upon seeing the letter from the Permanent Secretary of the Federal Ministry of Education, Mr. Andrew David Adejo (CON), dated November 8, 2023, addressed to the Accountant General of the Federation, and the public statement made by the Honourable Minister for Education during the 75th University of Ibadan Founder’s Day Celebration in November 2023, affirming the exclusion of Tertiary Institutions from the policy, we breathed a sigh of relief.

    “We hold the firm belief that the latest circular dated December 28, 2023, issued by the Federal Ministry of Finance, which includes Tertiary Institutions, may have been an oversight.

    “We hereby urge the government, in the interest of the public, to reconsider her decision and revert to the well-thought-out position that initially excluded Tertiary Institutions from the 50% Automated Deduction Policy. Any deviation from this stance would be detrimental to the already beleaguered education sector.”

  • IGR as benchmark for states’ economic viability

    IGR as benchmark for states’ economic viability

    • Embracing IGR as a primary revenue source positions states on a trajectory toward financial autonomy and the ability to meet the evolving needs of their populations

    Nigeria, a country endowed with diverse resources, continues to grapple with economic challenges that vary across its 36 states and the Federal Capital Territory. One crucial indicator of financial health and autonomy is the Internally Generated Revenue (IGR) of each state. A recent report has shed light on the precarious financial situations of Bayelsa, Kebbi, Katsina, Akwa-Ibom, Taraba, and Yobe states. The analysis indicates that these states, facing insolvency concerns, heavily rely on the monthly disbursements from the Federation Account Allocations Committee (FAAC) for their financial sustenance. This dependence is underscored by their meagre internal revenue generation, which falls below 10 per cent of the cumulative revenue received from the federation account in 2022.

    In the same report by Economic Confidential, a subsidiary of PR Nigeria, seven states have been identified as the most economically viable in Nigeria for the year 2022. The states in this valued category include Lagos, Ogun, Rivers, Kaduna, Kwara, Oyo, and Edo. This disclosure was made by Zekeri Idakwo, the Assistant Editor of Economic Confidential, during a press briefing and the presentation of the 2022 Annual States Viability Index Report held in Abuja on Monday. The report’s credibility stems from its painstaking compilation, drawing on data released by both the Nigerian Bureau of Statistics and the Federal Account Allocation Committee. This comprehensive approach ensures a nuanced understanding of the economic landscape, considering factors ranging from fiscal management to revenue generation.

    The inclusion of states such as Lagos and Rivers underscores the importance of thriving commercial centres in contributing significantly to the national economic tapestry. Ogun, Kaduna, Kwara, Oyo, and Edo, by earning a spot on this list, showcase a diverse range of economic activities and effective governance practices. This unveiling of the most viable states serves as a valuable resource for policymakers, investors, and citizens alike, providing insights into the economic health of these regions. It also underscores the need for other states to draw inspiration from the successful models presented by the identified states, fostering healthy competition and collaborative efforts to enhance overall economic viability across the nation.

    Idakwo said: “The IGR of the 36 states of the federation totalled N1.8trn in 2022, which was above that of 2021, which was N1.76 trillion. The report further indicates that the IGR of Lagos State of N651 billion is higher than that of 30 other states put together whose Internally Generated Revenues are extremely low and poor, compared to their allocations from the Federation Account. A total Internally Generated Revenue of N1.5trn from the seven most viable states in 2022 was almost twice the total IGR of 29 states together that merely generated about N650bn.”

     A detailed breakdown of the report reveals significant variations in the Internally Generated Revenue (IGR) among states. Notable examples include Lagos, which, despite receiving N370 billion from the Federation Account Allocation Committee (FAAC), managed to generate an impressive N651 billion. Ogun received N113 billion from FAAC and generated N120.5 billion, while Rivers received N363.4 billion from FAAC and generated N172 billion. Kaduna received N155 billion from FAAC and generated N58 billion, Kwara received N99 billion and generated N35.7 billion, Oyo received N181 billion and generated N62 billion, and Edo received N147 billion in federal allocation and generated N47.4 billion.

     On the other hand, the report highlights the financial challenges faced by six states, including Bayelsa, Akwa Ibom, and Katsina, which are labelled as insolvent states. These states failed to generate up to 10% of the total allocations received from FAAC, indicating a concerning level of dependency on federal allocations and a need for enhanced strategies to boost their internal revenue generation. “The six states that may not survive without the Federation Account due to their extremely poor internal revenue generation of less than 10% compared to their federal allocations are Bayelsa, Katsina and Akwa Ibom, the home states of former Presidents Goodluck Jonathan, Muhammadu Buhari, and the current Senate President Godswill Akpabio, respectively. Others are Taraba, Yobe and Kebbi States,” the report added.

     Bayelsa found itself at the bottom of the list, having received a substantial allocation of N273 billion but only managed to generate a meager N15.9 billion, representing a mere 5.81% of the total allocations. Kebbi, although receiving N119 billion, generated only N9 billion (7.67%); Katsina received N165 billion and generated N13 billion (7.90%); Akwa Ibom secured N360 billion with an IGR of N34.8 billion (9.66%); Taraba received N103 billion and generated N10.2 billion (9.91%); and Yobe received N105 billion, generating N10.4 billion (9.91%). Idakwo emphasized that enhancing the states’ Internally Generated Revenue (IGR) requires a proactive shift toward economic diversification into productive sectors. This strategy contrasts with the current heavy reliance on monthly Federation Account revenues, which predominantly originate from the oil sector.

     The report further emphasised that these states might face considerable challenges in sustaining their financial stability without relying heavily on the monthly allocations. He pointed out that certain states struggled to attract investments due to a combination of socio-political and economic crises, including issues such as insurgency, kidnapping, armed banditry, and clashes between herdsmen and farmers. These adversities not only hampered economic growth but also deterred potential investors from engaging with these regions, exacerbating the states’ financial predicaments. Addressing these underlying issues is crucial for creating an environment conducive to economic development and attracting the necessary investments to bolster the states’ financial resilience.

    The recently unveiled seventh Annual States Viability Index (ASVI) report highlights a concerning reality: a multitude of states find themselves financially precarious and would struggle to sustain operations without the consistent monthly disbursement from the Federation Account Allocation Committee (FAAC), predominantly sourced from the oil sector. Internally Generated Revenues (IGR), crucial for state autonomy, are derived from various channels such as Pay-As-You-Earn Tax (PAYE), direct assessments, road taxes, and revenues from ministries, departments, and agencies (MDAs). The report underscores the indispensable role of FAAC disbursements in upholding the financial viability of numerous states, revealing a critical need for diversification and robust strategies to bolster IGR and ensure long-term fiscal sustainability.

    Upon closer examination of the data presented in the report, a more in-depth analysis by the International Centre for Investigative Reporting (ICIR) reveals additional insights: a significant number of Nigeria’s 36 states would find it challenging to cover recurrent expenditure, particularly personnel costs, without revenues from the Federation Account Allocation Committee (FAAC). Personnel costs in a fiscal budget encompass the total expenditure allocated to remunerate government employees. Its investigation reveals that 17 out of the 36 states may not be able to meet even six months’ worth of approved personnel costs from their Internally Generated Revenue (IGR) in the 2023 fiscal budget. To finance their budgets, these states would have to rely on alternative sources such as local or external borrowings, multilateral loans, FAAC disbursements, grants, and aids. The states facing this financial challenge include Abia, Adamawa, Akwa Ibom, Bayelsa, Benue, Borno, Cross Rivers, Ebonyi, and Imo, as well as Kastina, Kebbi, Kogi, Nasarawa, Niger, Plateau, Taraba, and Yobe.

     As an illustration, consider Bayelsa’s fiscal appropriation for 2023, which earmarked N81.78 billion for personnel costs, equivalent to N6.81 billion monthly. However, the state’s IGR stood at N15.09 billion. In the scenario where IGR is utilised to cover personnel costs, it would only be sufficient for two months, necessitating alternative financial strategies to bridge the shortfall.

     In a parallel scenario, Plateau State’s approved personnel cost for 2023 amounted to N105.12 billion (equivalent to N8.76 billion monthly). However, the state’s IGR only stood at N15.93 billion, capable of covering a mere two months of personnel expenditure. This underscores a substantial gap between the allocated personnel budget and the state’s revenue-generating capacity. According to the National Bureau of Statistics, the cumulative Internally Generated Revenue (IGR) for all 36 states and the Federal Capital Territory in 2022 reached N1.93 trillion, reflecting a 1.57% increase from the N1.896 trillion recorded in 2021. Interestingly, as reported by The ICIR, nearly half of this total IGR in 2022—49.25%—was attributed to Lagos, Rivers, and the Federal Capital Territory combined. This concentration of revenue in a few states accentuates the disparities in economic capacities and underscores the need for a more equitable distribution of resources for sustainable development across all regions.

    Read Also: Soludo leads Ngige, others for father’s thanksgiving, commends Shettima

     Despite generating Internally Generated Revenue (IGR), a notable challenge persists in 13 states, as they were unable to implement 80 per cent of their 2022 fiscal budgets. This indicates a significant gap between revenue generation and effective utilisation in these states. Furthermore, many states with lower IGR levels heavily rely on the Federal Government’s allocation and resort to taking loans to sustain their operations. In contrast, states like Lagos, Ogun, and Rivers exhibit a more robust financial capacity. The ICIR’s analysis reveals that Lagos State’s 2022 IGR alone is sufficient to cover the state’s personnel expenditure for an impressive two years and ten months (34 months). Similarly, Ogun State’s IGR can offset 14 months of personnel costs, and Rivers State’s IGR is substantial enough to cover 16 months of personnel expenditure. This stark contrast underscores the disparities in financial resilience among states and emphasises the need for strategic financial management and economic diversification to ensure sustainability across the board.

     Challenges faced by states and implications for development

     The recently released report has shed light on the financial intricacies faced by various states. An alarming revelation is that a considerable number of states would struggle to offset recurrent expenditures, especially personnel costs, without relying on the monthly disbursement from the Federation Account Allocation Committee (FAAC). This dependency, as highlighted in the report, poses a significant threat to the economic viability of these states, leaving them susceptible to external economic shocks. The analysis of IGR across the states accentuates the disparities in economic capacities. Lagos, Ogun, and Rivers stand out as economic powerhouses, utilising their substantial yearly IGR to offset personnel costs for extended periods. Lagos, for instance, can cover personnel expenditures for an impressive 34 months, showcasing a level of financial autonomy that distinguishes it from many other states. Conversely, the report identifies states such as Bayelsa, Akwa Ibom, and Katsina as financially insolvent, failing to generate even 10% of their total allocations from FAAC. This stark dichotomy between states with robust IGR and those heavily reliant on federal allocations highlights the urgent need for a reevaluation of fiscal strategies.

     The inability of several states to implement a significant portion of their fiscal budgets despite generating IGR points to inefficiencies and mismanagement. It raises questions about the states’ capacity to invest in critical sectors such as education, healthcare, and infrastructure, hindering overall economic development. Addressing the challenges associated with IGR requires a multi-faceted approach. States must prioritise economic diversification, moving away from reliance on oil-dependent revenues. The promotion of private sector participation and investment-friendly policies can stimulate economic growth, fostering an environment conducive to increased IGR. Furthermore, states must implement robust financial management practices to ensure the effective utilization of generated revenues. This includes reducing wasteful spending, enhancing transparency, and investing in capacity building for revenue-generating agencies.

     As Nigeria navigates the complex terrain of economic viability, the role of IGR cannot be overstated. States must strive for greater financial autonomy by diversifying revenue sources, implementing sound financial management practices, and creating an enabling environment for investments. The disparities in IGR among states underscore the imperative for comprehensive reforms to ensure sustainable development and resilience in the face of economic uncertainties. The report should prompt a re-evaluation of strategies, emphasizing the importance of sound fiscal policies, efficient resource allocation, and proactive governance. The states recognised in this report serve as beacons of economic resilience and models for sustainable development in a rapidly changing global landscape.             

  • 36 states IGR hit N1.82tn in 2022 – BudgIT

    36 states IGR hit N1.82tn in 2022 – BudgIT

    Civic-tech organization, BudgIT, said the Internally Generated Revenue (IGR) of the 36 states in the country grew to N1.82tn in 2022 from N1.61tn in 2021.

    It said the cumulative revenue of the 36 states grew by 28.95% from N5.12tn in 2021 to N6.6tn in 2022, denoting a strengthened domestic revenue mobilization capability.

    BudgIT said the increase in IGR did not reflect across board as 17 states experienced a decline in their IGR from the previous year while 19 states recorded positive growth.

    It said this was occasioned by a 49.2% increase in global oil prices, gross federal transfers rose by 35.68% from the previous year to N4.05tn, despite a 12.55% drop in crude oil production.

    This is part of BudgITs 2023 State of States report that was launched yesterday in Abuja, themed: Subnational Healthcare Delivery for Improved Economic Development.

    The report stated: “This year, the fiscal performance table Index A received a new entrant, Anambra, as Rivers retained its number one position, making it the 4th time in a row. However, Cross River lost its place in the top five and fell to the 9th position. Adamawa recorded the most impressive improvement as it moved ten places up to 23rd from its 33rd position the previous year.

    “The most drastic decline happened to Kebbi as it retrogressed 13 places downward on the fiscal performance ranking to the 28th position. Only two states, Lagos and Kaduna, generated more than enough IGR to cater to their operating expenses; Taraba, Katsina, Bayelsa, and Zamfara required more than seven times their IGR to manage their operating expenses.

    “Five states Abia, Imo, Yobe, Zamfara, and Plateau (the least ranked states on index B) did not raise enough total revenue (their combined IGR, federal allocations, and grants) to cater to their recurrent expenditure. This means these states resorted to borrowing to manage some parts of their recurrent expenditure and capital expenditure. The number of states that prioritized capital expenditure over recurrent expenditure doubled from the previous year to ten states. Zamfara and Plateau were new entrants in the bottom five positions on the overall fiscal performance table.

    “The cumulative revenue of the 36 states grew by 28.95% from N5.12tn in 2021 to N6.6tn in 2022. Together, the Internally Generated Revenue (IGR) of the 36 states appreciated by 12.98% from N1.61tn in 2021 to N1.82tn in 2022, denoting a strengthened domestic revenue mobilization capability. Nonetheless, the IGR to GDP ratio remained very low at 1.01%. The increase in IGR did not reflect across board as 17 states experienced a decline in their IGR from the previous year while 19 states recorded positive growth. Occasioned by a 49.2% increase in global oil prices, gross federal transfers rose by 35.68% from the previous year to N4.05tn, despite a 12.55% drop in crude oil production.

     “Cumulatively, states’ reliance on transfers from the federal government increased from 58.4% in 2021 to 61.45% in 2022. Taken apart, at least 70% of the total revenue of 16 states comprised federal transfers, while 32 states depended on transfers from the federal government for at least 50% of their revenue.

    “The total expenditure of the 36 states stood at N8.2tn, 24.7% more than the N6.58tn spent in 2021. Save for three states—Anambra, Cross River, and Rivers—33 states had an increase in their total spending in the 2022 fiscal year. Commendably, not only did nine states exceed the UNESCO recommendation of allocating 20% of the annual budget to education, but 15% of the total expenditure for 17 states went to education. Regarding health, just two states, Sokoto and Jigawa, surpassed the Abuja Declaration recommendation of earmarking 15% of your total expenditure for improvement in healthcare delivery.

    “A broader look at expenditure revealed that a 19.26% increase in cumulative operating expenses of the 36 states was accompanied by a 28.54% increase in capital expenditure, year-on-year. Although 15 states are yet to implement the minimum wage of N30,000, the cumulative personnel cost of the 36 states grew by 13.44% to N1.75tn from N1.54tn the previous year. Similarly, overheads grew by 23.42% to N1.24tn in 2022.

    “The total debt of the 36 states increased by 13.89% from N6.37tn in 2021 to N7.25tn in 2022. From 2018, the year before most governors either assumed office for the first time or were re-elected, the cumulative debt stock of the 36 states grew by 45.89% from N4.97tn in 2018 to the current value. Broken down, domestic debt—which rose by 16.15% year-on-year—made up 72.5% of the total debt stock as of December 31, 2023.

    “Five states—Plateau, Bayelsa, Imo, Katsina, and Rivers—had a decline in their total debt stock from the previous year. Lagos, alongside Kaduna, Edo, and Cross River, have dollar-denominated debts in excess of $250m. Lagos’ foreign debt stock of $1.25bn surpassed the cumulative foreign debt stock of 24 states as of 31st December 2022, making it highly susceptible to exchange rate volatility. Without accumulating any additional dollar-denominated debt, the foreign debt stock of Lagos in naira increased from N560.03bn (using an exchange rate of N448 to $1) to N933.92bn (using an exchange rate of N747.1 to $1).

    Read Also: Budglt launches app to track Federal allocations

    It further stated: “Overall, except for Zamfara, which exceeded the recommended threshold for debt service to revenue ratio, and Cross River state, which surpassed the debt to revenue threshold, all other states remained within the recommended limits for debt to GDP, debt to revenue, debt service to revenue, and personnel cost to revenue ratio.

    “To reduce their over-reliance on federal transfers, States need to broaden and diversify their tax base, which currently is predominantly PAYE-dependent. In light of the huge infrastructure deficit, states need to prioritise capital expenditure over recurrent, especially on areas that improve the ease of doing business, namely road, power, transport, digital and security infrastructure. The multiplicity of taxes, which puts inflationary pressures on the price of commodities, more importantly food, needs to be urgently addressed.

    “Just as the state governments need to improve their capacity to accurately and consistently project their revenues and expenditures to improve service delivery outcomes, they need to establish robust consequence management regimes to deter corruption and ensure value for money.”

  • IGR: Expand tax net, not VAT, NECA urges govts

    The Nigeria Employers Consultative Association (NECA) has urged state governments to engage in taxpayer enlightenment and expand their tax net to increase their Internally Generated Revenue (IGR).

    The call was made following President Muhammadu Buhari’s advice to states to increase Value Added Tax (VAT) to increase their IGR.

    NECA said increasing VAT at this time was not only misplaced but would further impoverish the citizens the President promised to take out of poverty. To NECA, the step will do more harm to the already burdened private sector.

    Its Director-General, Timothy Olawale, who spoke at the International Labour Conference in Geneva, Switzerland, said  the President meant well by urging states to be innovative in increasing their IGR and prudent in their expenditures. He, however, argued that state governments could not increase VAT without amending the VAT Act at the National Assembly.

    According to him, it is the common man that will be at the receiving end of any increase in VAT.

    “Even if businesses are taxed more through likely illegal levies and rates, outside the provisions of the law, they will naturally pass the cost to the customers whose purchasing power is already at the lowest ebb,” he said.

    Proposing a way out, Olawale said the federal and state governments should engage in an aggressive taxpayer enlightenment and expansion of the tax net to capture more citizens, adding that less than 40 per cent of Nigerians pay tax.

    He suggested that the states should put mechanisms in place to eliminate leakages as a large chunk of the IGR realised did not find their way into the government coffers.

    Olawale advised governors on reduction of cost of governance, saying the retinue of aides kept by them at prohibitive cost to the state was needless.

    “Besides, ingenious idea of corrupt practices in the name of security votes and frivolous foreign travels by state government functionaries are veritable examples of cuttings in avoidable expenses draining state government purses.”

    Olawale, however, opposed the call for state governments to hike VAT to increase their IGR.

    Considering the reported over N2 trillion of bail-out funds to many of the states, it was apt for the President to advise them to be innovative to increase their IGR and at the same time be prudent in their expenditures.

    “However, the call for increase in VAT or any other form of tax as a way to increase IGR at this time is not only misplaced, but will do more harm to the already burdened private sector and further impoverished citizens that the President promised to take out of poverty.

  • ‘I don’t want to base IGR on high school fees’

    Mr Lateef Ademola Olatunji is the Rector of the Federal Polytechnic, Offa, Kwara State. A PhD holder in Economics, he is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN). In this interview with FREDRICK ADEGBOYE, Olatunji speaks on his plans for the polytechnic and what he hopes to leave behind.

    What are your challenges since you assumed office as the Rector of Federal Polytechnic, Offa in January 2017?

    Yes, normally, it has boiled down to paucity of funds. You know, it’s not easy, every institution in Nigeria is struggling to make ends meet when it comes to funds and maintaining the decaying infrastructure in our institutions. So, the greatest challenge is how to have more funds to do more things because for anybody to excel, you need funds.

    What are you doing in revenue generation?

    When I came in, there were so many things that were absent. In the area of collaboration, you witnessed our matriculation with the Federal University of Technology, Minna. We have started IJMB (Interim Joint Matriculation Board) programmes too. We’re doing A-Levels in collaboration with Ahmadu Bello University.

    There are many things that are coming in to increase our internally generated revenue which have not been before. And, fortunately, we have one of the cheapest tuition in Nigeria. I don’t want to base my IGR on tuition by increasing it. We don’t do that here. You can ask anybody. For instance, look at our hostels, it’s N10,000. We still have school fees of our HND, pegged at N16, 000 per session. So, we’re trying in the area of improving our IGR. And by His grace, by the next session, many things would join the ones I’ve just mentioned.

    You’re a chartered accountant. How would you compare the accounting curricula in the universities with what obtains in the polytechnics?

    I think in the area of accounting, the polytechnics do better. If you go to places like YABATECH (Yaba College of Technology), before many of those students graduate, they are already chartered accountants. This means that the curricula of polytechnics are richer than that of those of universities viz a viz the ICAN requirements.

    But despite that, one still finds disparity in pay and placement between HND and BSc holders in the labour market?

    Yes, the government is trying all means possible to address it. In some states, they have removed the disparity. I know the government would do something about it. It’s a long tradition and people are made to believe polytechnic students are sub-standard and the government is trying to correct this. Now within the government circle, when you come in as HND and BSc graduates, they would start the both of you on the same level. So, I think the disparity is mostly in the private sector.

     OK, which day would you say has been your greatest joy, especially since you became the rector?

    You all knew Federal Polytechnic Offa. But since I took over the mantle of leadership, there has not been any crisis in the polytechnic. There has not been any closing of gates by staff, students or the unions.

     But it was in the news some time ago that some students were rusticated for being cultists…

    (cuts) Not in my administration.

    And which day would you say has been a sad one for you here?

    Well, my own cross has been when people don’t carry the right story. Like when I read that a student committed suicide based on handout. The story was not true.

    In Offa Poly here?

    Yes! We lost one of our students but one of the national newspapers reported that the student committed suicide because of handout. Those things are not true. When you hear those  things, people would be calling you from all over the world, asking what was happening. Immediately, we debunked the story.

    What legacy would you like to leave?

    Number one, I want this institution to rank first in the area of accreditation; that all our courses would be accredited. Number two, I want to mount new programmes in almost all the departments. I’ve charged the various head of departments that they should come up with programmes that are sellable; programmes that would allow the students to be self-dependent. Three, I want to ensure laboratories across all departments to be fully stocked with equipment. Currently, if you go to our Department of Mass Communication, we have one of the best equipment anybody can boast of. Look at the departments of Computer Engineering and Computer Science too. So, those are the legacies I want to leave.

  • ‘I don’t want to base IGR on high school fees’

    Mr Lateef Ademola Olatunji is the Rector of the Federal Polytechnic, Offa, Kwara State. A PhD holder in Economics, he is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN). In this interview with FREDRICK ADEGBOYE, Olatunji speaks on his plans for the polytechnic and what he hopes to leave behind.

    What are your challenges since you assumed office as the Rector of Federal Polytechnic, Offa in January 2017?

    Yes, normally, it has boiled down to paucity of funds. You know, it’s not easy, every institution in Nigeria is struggling to make ends meet when it comes to funds and maintaining the decaying infrastructure in our institutions. So, the greatest challenge is how to have more funds to do more things because for anybody to excel, you need funds.

    What are doing in revenue generation?

    When I came in, there were so many things that were absent. For instance, we just started water. In the area of collaboration, you witnessed our matriculation with the Federal University of Technology, Minna. We have started IJMB (Interim Joint Matriculation Board) programmes too. We’re doing A-Levels in collaboration with Ahmadu Bello University.

    There are many things that are coming in to increase our internally generated revenue which have not been before. And, fortunately, we have one of the cheapest tuition in Nigeria. I don’t want to base my IGR on tuition by increasing it. We don’t do that here. You can ask anybody. For instance, look at our hostels, it’s N10,000. We still have school fees of our HND, pegged at N16, 000 per session. So, we’re trying in the area of improving our IGR. And by His grace, by the next session, many things would join the ones I’ve just mentioned.

    You’re a chartered accountant. How would you compare the accounting curricula in the universities with what obtains in the polytechnics?

    I think in the area of accounting, the polytechnics do better. If you go to places like YABATECH (Yaba College of Technology), before many of those students graduate, they are already chartered accountants. This means that the curricula of polytechnics are richer than that of those of universities viz a viz the ICAN requirements.

    But despite that, one still finds disparity in pay and placement between HND and BSc holders in the labour market?

    Yes, the government is trying all means possible to address it. In some states, they have removed the disparity. I know the government would do something about it. It’s a long tradition and people are made to believe polytechnic students are sub-standard and the government is trying to correct this. Now within the government circle, when you come in as HND and BSc graduates, they would start the both of you on the same level. So, I think the disparity is mostly in the private sector.

     OK, which day would you say has been your greatest joy, especially since you became the rector?

    You all knew Federal Polytechnic Offa. But since I took over the mantle of leadership, there has not been any crisis in the polytechnic. There has not been any closing of gates by staff, students or the unions.

     But it was in the news some time ago that some students were rusticated for being cultists…

    (cuts) Not in my administration.

    And which day would you say has been a sad one for you here?

    Well, my own cross has been when people don’t carry the right story. Like when I read that a student committed suicide based on handout. The story was not true.

    In Offa Poly here?

    Yes! We lost one of our students but one of the national newspapers reported that the student committed suicide because of handout. Those things are not true. When you hear those  things, people would be calling you from all over the world, asking what was happening. Immediately, we debunked the story.

    What legacy would you like to leave?

    Number one, I want this institution to rank first in the area of accreditation; that all our courses would be accredited. Number two, I want to mount new programmes in almost all the departments. I’ve charged the various head of departments that they should come up with programmes that are sellable; programmes that would allow the students to be self-dependent. Three, I want to ensure laboratories across all departments to be fully stocked with equipment. Currently, if you go to our Department of Mass Communication, we have one of the best equipment anybody can boast of. Look at the departments of Computer Engineering and Computer Science too. So, those are the legacies I want to leave.

  • Lagos, Rivers, Ogun, FCT ahead on IGR

    The National Bureau of Statistics (NBS)  yesterday released the Internally Generated Revenue at State level for half year 2018, which tracks the performance of Nigeria’s 36 states and the Federal Capital Territory in terms of Internally Generated Revenue (IGR).

    During the period under review, the states and FCT generated a total of N579.490 billion, as against N453.833 billion posted in the corresponding period of last year, a growth of 27.7 percent year-on-year. T

    wenty-eight states recorded growth in IGR while eight states, including Abia, Anambra, Benue, Taraba, Kebbi, Kwara, Ebonyi and Enugu, recorded a decline in 2018 half-year. In the first and second quarters of the year, the states generated N280.835 billion and N263.343 billion respectively.

    The revenues generated by the states came mainly from Pay-As-You-Earn Tax (N352.509 billion), Direct Assessment (N26.293 billion), Road Taxes (N11.681 billion), Other Taxes (N84.033 billion) and revenues from Ministries, Departments and Agencies (N104.972 billion).

    A breakdown of the report showed that Lagos, Rivers, Ogun, FCT and Delta were the best five performers during the period under review. Lagos State generated N196.395 billion, up by 16.88 percent from N168.025 billion in first half of 2017, to top the list. In second place is Rivers, with N60.906 billion, an increase of 36.13 percent, from the N44.742 billion recorded last year.

    Ogun State improved by 6.70 percent to N42.519 billion from N39.849 billion in the comparable period of 2017. The FCT generated N35.311 billion during the period, while Delta State posted N29.797 billion, a growth of 17.80 percent from N25.103 billion in 2017.

    In 2017, the states generated N931.23 billion, an increase of 12.03 per cent from 2016. In the second half of 2017, the total revenue generated by states was N432.65 billion, compared to N409.09 billion in first half of the year.

     

  • Local govt boss vows to boost economy, IGR

    Epe Local Government is committed to boosting its economy and increasing Internally Generated Revenue (IGR) through tourism, its Chairman, Mr. Adedoyin Adesanya, said yesterday.

    He told the News Agency of Nigeria (NAN) in Epe that his administration would not focus only on taxes and levies, but also on programmes that could engender development.

    His administration, he said, would tap into the tourism, arts and culture potential of Epe to drive local investment and generate income.

    According to him, his administration intends to partner companies and agencies, including FADAMA, to provide outboard engines for artisanal fishermen in rural communities.

    “The plan is to set up a small scale feed mill to empower commercial fish farmers in the community.

    “We also intend to set up automated cassava processing units in parts of the community to support trade and businesses to boost the local economy,” Adesanya said.

    He decried the poor federal allocation to the local government, saying it was limiting its ability to carry out people-oriented responsibilities.

    The council chairman called for a review of the revenue sharing formula among the tiers of government in favour of councils because they were closer to the people.

    He said since assuming office, his administration had improved the school system by investing in educational materials and renovating facil ities.

    The council, Adesanya said, had also invested in health care and maternity homes, security, welfare, social welfare, workers’ welfare and infrastructural development.

    He said his administration would renovate the local government staff quarters, invest more in infrastructure that could ease the stress of workers and community members.

    The chairman hailed the Governor Akinwumi Ambode administration for its cordial relationship with the council.

  • NGF hosts states tax officers

    The Nigeria Governors’ Forum ( NGF ) on Monday hosted tax officers from the 36 states of the federation in Abuja.

    The meeting was to introduce them to the Internally Generated Revenue (IGR) dashboard, which is an innovation of the Economic department of the NGF.

    At the occasion, the NGF Director General, Mr Okauru, charged the desk officers not to see the exercise as another jamboree but to view it as serious business designed to shore up the revenue base of their various states.

    He said: “I want to start by warmly welcoming every person to Abuja and particularly to the NGF Secretariat building. This is where we host the thirty-six (36) Governors every time they are in Abuja for NGF meetings or sub-committee sessions.

    “As you probably know, under our constitution, Governors or their deputies are required to attend the National Economic Council (NEC) meetings in Abuja presided over by the Vice President of the Federal Republic of Nigeria once every month.

    “NEC is the highest economic advisory body in the country. It is important we put this in context because of today’s event.

    “This is not another talk shop. It is a very serious event designed to train Desk Officers on one of our flagship projects: the Internally Generated Revenue (IGR) Dashboard Initiative. The IGR Dashboard is dedicated to strengthening ongoing reforms targeted at raising the internally generated revenue of States, by actively engaging with the 37 tax authorities in the country, including the FCT.

    “In the past years, we have built a strong relationship with the Executive Chairmen of the State Inland Revenue Bodies/Agencies/Services. We strongly believe that for the IGR Dashboard Initiative to succeed, it is important we maintain another layer of relationship in the space you operate. In my opinion, as Desk Officers, you are functionally the most important part of the implementation puzzle.

    ‘You are a very crucial point of contact on all matters related to the IGR Dashboard. This is an important call in the broader context of our engagement with your State governors in the drive for strong political commitment for IGR reforms.

    Some States have since taken advantage of this initiative. However, beginning from today, you now have a fresh level-playing ground for all States to take advantage of the opportunities the IGR Dashboard provides.

    “We expect some degree of networking among yourselves to facilitate sharing experiences. You also have a unique opportunity to request for technical assistance from the NGF Secretariat and our development partners.

    “The outcome in some states back our conviction that addressing the challenges of tax administration at the sub-national level can be achieved within a short period. The NGF has taken a leading position on this by continuing to play an active role in strengthening institutional and governance systems at the sub-national level, including your Internal Revenue Agencies/Bodies/Services.

    “Our support to States has been through the provision of evidence to influence policy formulation and implementation, the development of knowledge resources to strengthen reforms and the delivery of national platforms for peer learning.

    To contribute to a more coherent reform environment and fast track full domestication of commendable practices across all States and the FCT, the NGF Secretariat also develops GUIDES for implementing reforms based on extensive experience in peer reviewing the 36 States over the last ten (10) years.” he said

    This, he said, has significantly improved the way State governments run and the overall governance climate in the country.

    “In light of your important role, we will today be launching a GUIDE for the IGR Dashboard. We encourage you all to adopt the approaches documented in this GUIDE. They have worked in many States. This document also provides guidance to our in-house team in building the capacity of revenue officials at the state level. It is the reference tool at different administrative levels in the design, implementation and monitoring of tax reforms.

    “Our doors are open. We are happy to maintain and in fact deepen this relationship. Please take advantage of the presentations and contributions of our facilitators and the opportunity to share useful lessons with your peers.

    “I wish you all a fruitful time and even more so the application of the knowledge acquired here in your various states.” he said

  • JTB chief hails Ugwuanyi for effective IGR

    The Chairman of the Joint Tax Board (JTB), Mr. Tunde Fowler, yesterday hailed Enugu State Governor Ifeanyi Ugwuanyi for putting in place a proficient and “unparalleled” tax system.

    He said the governor’s measures had ensured that the state exceeded the 15 per cent tax revenue to the Gross Domestic Product (GDP) benchmark suggested by the United Nations (UN) to fund budgets.

    The JTB chairman, who is also the Chairman of Federal Inland Revenue Service (FIRS), praised the governor for the unprecedented growth in the Internally Generated Revenue (IGR) of Enugu State as well as the judicious utilisation of the funds for the state’s development.

    Fowler spoke during the 141st meeting of the board in Enugu.

    It was attended by chairmen of the boards of internal revenue from the 36 states.

    The JTB chief said the objective of the meeting, with the theme: Leveraging on ICT for Efficient Tax Administration and Revenue Enhancements, Focusing on States IRS, was to discuss tax matters and how to provide better services as well as “look at contracts executed with tax payers’ money”.

    Addressing the participants, Fowler said: “As you come to Enugu, you can see how tax funds were used. Following the testimony given by the Chairman of the Board of Internal Revenue of Enugu State, Mr. Emeka Odo, as a good friend, all the chairmen are supposed to have the copies of advance sheets to their Governors for them to see what was going on in Enugu State and how things are supposed to be done.”

    Ugwuanyi said his administration, in realising the need to reduce its dependence on the then dwindling statutory receipts from the Federation Account, “immediately embarked on the reform of public finances to align with our developmental priorities and realities”.

    He added: “We are glad to report that these measures have made a tremendous impact on our revenue streams, enabling our IGR to peak at N22 billion last year, in contrast to the N14 billion we collected in the 2016 fiscal year.”