Four states where Governor’s Office budget exceeds IGR

The 2024 budget for the governor’s office in four states in Nigeria exceeds the total internally generated revenue (IGR) of the preceding year, new data released by StatiSense has shown.

The data reveals that the 2024 budgets for governors’ offices in Cross River, Imo, Anambra, and Taraba states are greater than these states’ entire IGR in 2023.

StatiSense, a tech company specialising in data and information management, posted an analysis of this data on its verified X handle on Wednesday.

Imo State budgeted 206 per cent of its 2023 IGR for the Governor’s office in 2024. According to the data, the state allocated N43.05 billion to the Governor’s office but generated only N21.05 billion the previous year.

In Cross River, the state allocated N53.39 billion for the Governor’s office, which is 169 per cent of the N31.56 billion it generated in 2023.

Meanwhile, Anambra State, governed by a former Central Bank Governor and economist, Charles Soludo, budgeted N33.97 billion for the Governor’s office in 2024, compared to the previous year’s IGR of N33.46 billion, a budget equivalent to 102 per cent of the revenue.

Taraba State budgeted N13.31 billion for the Governor’s office in 2024, while its entire 2023 IGR was only N10 billion.

On the other end of the spectrum, states such as Ondo, Edo, Kaduna, Lagos, and Kwara allocated a smaller proportion of their internally generated revenue (IGR) to the Governor’s office. Ondo State allocated 5 per cent of its IGR, followed by Edo and Kaduna at 6 per cent each, Lagos at 8 per cent, and Kwara at 9 per cent.

Although Lagos State allocated the highest budget for the Governor’s office in 2024, totalling N65.2 billion, the state generated an IGR of N815 billion in 2023.

It is important to note that the variation in budget allocations may be attributed to the different agencies included under the Governor’s office budget in each state. For example, at the federal level, the State House budget encompasses agencies such as the EFCC, ICPC, Nigerian Financial Intelligence Unit, Nigeria Atomic Energy Commission, and the Bureau of Public Procurement, among others.

However, questions remain about the transparency of the budgetary process in many states, and the history of corruption by state executives further heightens these concerns.

State Funding and Opacity

States are funded by three major sources: allocation from the federation account, IGR, and loans. However, most states rely heavily on allocations from the federation account for survival.

Earlier, PREMIUM TIMES reported that the National Bureau of Statistics (NBS) announced that the 36 states and the Federal Capital Territory (FCT) collectively generated N2.43 trillion in IGR in 2023. The NBS report also noted a 26.03 per cent increase in IGR in 2023 compared to the N1.93 trillion recorded in 2022.

According to the data agency, the 2023 IGR came from two main revenue sources—taxes and revenues from Ministries, Departments, and Agencies (MDAs).

The bureau stated that the tax sub-categories recorded during the period included Pay As You Earn (PAYE), Direct Assessment, Road taxes, Stamp duties, Capital Gains tax, Withholding taxes, other taxes, and Local Government Areas’ revenue.

The report highlighted that Lagos, FCT, and Rivers were the leading states in total IGR in 2023, with N815.86 billion, N211.10 billion, and N195.41 billion, respectively.

PAYE contributed the largest share of revenue in 2023, amounting to N1.24 trillion or 63.83 per cent of the total taxes collected nationwide.

The bureau noted that Capital Gains tax generated the least revenue in 2023, amounting to N5.91 billion.

Many states in Nigeria face allegations of lacking transparency in their finances, with governors often operating without adequate checks. State Houses of Assembly, which are charged with the responsibility of holding governors accountable, have frequently been described as compliant.

The immunity clause in the constitution makes it impossible to bring criminal cases against governors while they are in office. Since the return of democracy in 1999, several governors in Nigeria have faced prosecution in court, while others remain under investigation.

Conviction rates have been low. Some of the few cases resulting in conviction include former governors Joshua Dariye and Jolly Nyame of Plateau and Taraba states, respectively, although they were later granted state pardons.