By Abiola Olawale
A recent review of the financial performance of the 36 states in Nigeria has revealed that many states may face the risk of bankruptcy if they don’t receive a monthly allocation from the Federal government.
The review which is based on the available records on the official website of the National Bureau of Statistics (NBS) shows that Osun State, Niger State, Plateau State, Oyo State, Imo State, Adamawa State, Bauchi State, Nasarawa State, Katsina State, Ekiti State, Ondo State, Borno State and Yobe State rely heavily on their monthly allocations from the Federal government.
Also, the review, which only covers the first six months of the year 2024, indicated that states such as Ekiti, Imo, Katsina, Kogi, and Oyo are currently experiencing financial deficits due to the burden of recurrent expenditures.
A breakdown of the official figures from the NBS shows that several states earned significantly less than their salary expenditures, highlighting a concerning reliance on external funding sources to meet their payroll obligations.
A review of financial records for the first six months of 2024 reveals that Osun State generated N20.3 billion internally, but its personnel costs reached N25.8 billion, creating a shortfall for the half-year period.
In Imo State, the internally generated revenue stood at N9 billion as of the first six months of 2024, yet its personnel expenses totalled N22 billion, highlighting a substantial deficit.
Oyo State’s internal revenue stood at N28.6 billion, while its personnel costs for the same period reached N47.7 billion, indicating a significant funding gap.
Ondo State generated N16.1 billion internally, but its personnel costs doubled that amount, with a wage bill of N32 billion for the first six months of 2024.
Ekiti State’s internally generated revenue (IGR) of N10.7 billion falls short of personnel costs of N13.6 billion. Similarly, Zamfara State’s IGR of N11 billion is outpaced by personnel costs of N16.3 billion.
Niger State’s internally generated revenue of N14 billion fell short of its personnel costs of N25 billion, indicating a deficit of N11 billion.
Plateau State’s internally generated revenue of N11 billion was N6 billion less than its personnel costs of N17 billion, highlighting a funding gap.
Bauchi State’s internally generated revenue of N11 billion was insufficient to cover its personnel costs of N19 billion, resulting in a shortfall of N8 billion.
Adamawa State faced a significant deficit, earning only N5 billion internally while spending N23 billion on personnel costs, leaving a gap of N18 billion.
Yobe State also faced a significant deficit, earning only N5 billion internally while spending N23 billion on personnel costs, leaving a gap of N18 billion.
Borno State’s internally generated revenue of N12 billion fell short of its personnel costs of N17 billion, indicating a deficit of N5 billion.
Imo State’s IGR of N9.6 billion is dwarfed by personnel costs of N22.9 billion while for Kano State, despite an IGR of N24 billion, personnel costs reach N42 billion, indicating a substantial deficit.
Katsina State’s internally generated revenue of N10 billion is insufficient to cover a salary bill of N23 billion and Sokoto State’s IGR of N9 billion for the first six months of 2024 is significantly lower than personnel costs of N27 billion.
Nasarawa State’s IGR of N14 billion is outpaced by personnel costs of N23 billion and for Kogi State, despite generating N12 billion internally, personnel costs reach N29 billion, indicating a substantial shortfall.
However, Bayelsa State boosted an IGR of N46 billion within the first six months of the year, a figure that exceeds its personnel costs of N24 billion, presenting a rare surplus.
Cross River State’s IGR of N16 billion slightly surpasses its personnel costs of N13 billion, demonstrating a relatively healthier financial situation.
Edo State generated N34 billion internally and spent N32 billion on personnel, resulting in a surplus of N2 billion.
