Governor Siminalayi Fubara’s declaration of a significant surge in Rivers State’s monthly Internally Generated Revenue (IGR) is an achievement that resonates deeply within the economic landscape of Nigeria. The IGR’s rise from a humble estimate of N11 billion to a staggering N26 to N27 billion – a boost of over one hundred per cent – presents a laudable financial milestone. Fubara’s strategic and proactive revenue generation endeavours are attributable to this impressive accomplishment.
The declaration was made during the Governor’s address to the members of the House of Representatives Committee on Public Accounts, who visited him at the Government House in Port Harcourt to commend his government for hosting their retreat. Led by its Chairman, Hon. Busayo Oluwole Oke, the House commended the Governor for his commitment to fiscal responsibility and prudent financial management.
A report by Economic Confidential, quoting official statistics, shows that six states of the federation are insolvent, highlighting the unfortunate reality of Nigeria’s second tier of government. It is the most recent confirmation that many sub-nationals have become economic parasites, unable to sustain themselves without federal allocations. This is why the Governor’s remarkable achievement in doubling the IGR is praiseworthy.
Fubara’s success in boosting the IGR is a testament to his understanding of the importance of diversified revenue sources for sustainable development. The increase in revenue will enable the government to fund critical infrastructure projects, enhance public services, and improve the overall well-being of the people of Rivers State.
To ensure the prudent and effective utilisation of funds, it is imperative to invest in infrastructure projects that have the potential to generate employment opportunities and stimulate economic growth. By focusing on critical projects such as transportation, energy, and water systems, the government can create a multiplier effect that benefits the entire state. These projects not only provide employment opportunities but also lay the foundation for long-term economic development.
Governor Fubara’s decision to publicly disclose the monthly receipts is a testament to his unwavering commitment to transparency and accountability in governance. By making such information accessible to the public, he has set an exemplary precedent that should be emulated by all those entrusted with public funds. His honesty and integrity are laudable, as he could have easily concealed these funds without facing any consequences. His actions manifest his belief that the people he serves have a right to know how their funds are being utilised.
This disclosure is a vital step towards building trust between the government and its citizens. It clearly shows that Fubara is unafraid of scrutiny and is willing to take responsibility for his actions. His transparency has established a space where the public can engage in overseeing the use of public funds, guaranteeing their efficient allocation and preventing corruption. This sets a positive precedent for other government officials, inspiring them to embrace similar principles of transparency and accountability.
In addition to Siminalayi’s candour, residents of the state will feel more motivated to pay their taxes, knowing that the funds will be used for the overall development and progress of the state. This heightened trust and confidence in the government’s management of public funds will benefit everyone. The Governor is effectively promoting a culture of civic duty and cooperation among residents by demonstrating dedication to accountability and responsible financial management.
At a time when governors like Fubara are thinking outside the box to double their IGR, most of the sub-nationals have become economic parasites that cannot survive on their own without relying on federal allocations. For the country to overcome poverty and joblessness, the states must revert to productive, self-sustaining units.
According to figures from the National Bureau of Statistics and the Federation Account Allocation Committee, the report identified Lagos, Ogun, Rivers, Kaduna, Kwara, Oyo, and Edo as the most financially viable states in Nigeria for 2022. However, Bayelsa, Akwa Ibom, Katsina, Taraba, Yobe, and Kebbi States were unable to generate at least 10 per cent of the total allocations they received from FAAC and were declared insolvent.
In 2022, the internally generated revenue of the 36 states totaled N1.8 trillion, slightly higher than the N1.76 trillion generated in 2021. Lagos alone generated N651 billion, surpassing the combined revenue of 30 other states. The situation appears even more concerning when considering that the seven most prosperous states generated N1.5 trillion internally, nearly double the total IGR of the remaining 29 states, which amounted to about N650 billion.
The nine oil-producing states received additional allocations as their share of the 13 per cent derivation revenue, bringing their total receipts to about N869.09 billion. The stark reality is that without federal allocations and oil resources, many states would be insolvent. This is due to the extreme laziness and lack of creativity demonstrated by the states in boosting revenue generation for impactful development. In the First Republic, the regions were the driving force behind Nigeria’s development. They led in agriculture, mining, industrialisation, infrastructure, and social services, making them self-sufficient.
Yet, no state is inherently poor. In addition to advantages in agriculture and human capital, each state possesses rich deposits of various mineral types. These resources can be utilised to generate revenue, stimulate production, generate employment, and enhance their tax base. Agriculture and mining present opportunities to supply raw materials for industrial growth and attract investment.
As Rivers State’s Internally Generated Revenue (IGR) continues to grow, it is necessary for Sir Fubara to address leakages and reduce the cost of governance. Implementing comprehensive economic policies is essential to sustain this growth and reduce the state’s dependence on federal sharing. Capitalising on the liberalised power sector to attract investments and stimulate productive activities is key. The state should focus on improving rural infrastructure, education, health, and agriculture, while promoting private sector-led economies with Micro, Small, and Medium Enterprises (MSMEs) and start-ups at the centre.