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Lagos Generates More IGR than 30 States Combined

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  • Lagos Generates More IGR than 30 States Combined

Fourteen states are insolvent as their Internally Generated Revenues (IGR) in 2016 were far below 10 per cent of their Federation Account Allocations (FAA) in the same year.

The index, which was released on Monday by Economic Confidential, an Economic Intelligence Magazine, showed that without the monthly disbursement from the Federation Account Allocation Committee (FAAC), many states are unviable, and cannot survive without the federally collected revenue.

The IGR are generated by states through Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDA)s.

The report as contained in the Annual States Viability Index (ASVI), further indicated that the IGR of Lagos State of N302billion is higher than that of 30 states put together excluding Lagos, Ogun, Rivers, Edo, Kwara and Delta States whose IGRs are very impressive at more than 30 per cent each.

The 30 other states merely generated a total of N258billion in 2016.

The latest report on IGR revealed that only Lagos and Ogun States generated more revenue than their allocations from the Federation Account by 169 per cent and 127 per cent respectively and no any other state has up to 100 per cent of IGR to the federal largesse.

The IGR of the 36 states of the federation totalled N801.95 billion in 2016 as compared to N682.67 billion in 2015, an increase of N119.28 billion.

While the report provides shocking discoveries to the effect that 14 states which have less than 10 per cent IGR may not stay afloat outside the Federation Account Allocation due to socio-political crises including insurgency, militancy and herdsmen attacks, others lack foresight in revenue generation drive coupled with arm-chair governance.

The states that may not survive without the Federation Account due to poor internal revenue generation include Borno which realised a meagre N2.6billion compared to a total of N73.8 billion it received from the Federation Account Allocation (FAA) in 2016 representing about four per cent

Others are: Ebonyi with IGR of N2.3 billion compared to FAA of N46.6bn representing five per cent Kebbi N3.1 billion compared to FAA of N60.88 billion representing 5.14 per cent; Jigawa with N3.5 billion compared to N68.52 billion of FAA representing 5.15 per cent and Yobe with IGR of N3.24nn compared to N53.93 billion of FAA representing 6.0 per cent within the period under review.

Other poor internal revenue earners are Gombe which generated N2.94 billion compared to FAA of N46 billion representing 6.26 per cent; Ekiti N2.99 billion compared to FAA of N47.56bn representing 6.28 per cent; Katsina N5.54 billion compared to FAA of N83bn representing 6.65 per cent and Sokoto N4.54 billion compared to FAA of N65.97 billion representing 6.88 per cent.

Meanwhile Lagos State remained steadfast in its number one position in IGR with a total revenue generation of N302bn compared to FAA of N178 billion which translate to 169 per cent in the twelve months of 2016.

It is followed by Ogun State which generated IGR of N72.98 billion compared to FAA of N57 billion representing 127 per cent.

Others with impressive IGR include Rivers with N85 billion compared to FAA of N134bn representing 63 per cent; Edo with IGR of N23bn compared to FAA of N59 billion representing 38 billion.

Kwara State however with low receipt from the Federation Account has greatly improved in its IGR of N17 billion compared to FAA of N49 billion representing 35 per cent while Delta with IGR of N44 billion compared to FAA of N126 billion representing 6.88 per cent.

The ASVI further showed that only three states in the entire Northern region have IGR above 20 per cent.

They are Kwara, Kano, and Kaduna States. Meanwhile eight states in the South recorded over 20 per cent IGR in 2016. They are Lagos, Ogun, Rivers, Edo, Delta, Cross River, Enugu, and Oyo States State.

The states with the poorest IGR of less than 10 per cent in the South are Imo, Bayelsa, Ekiti, and Ebonyi States while in the North we have Niger, Nasarawa, Sokoto, Katsina, Gombe, Yobe, Jigawa, Kebbi and Borno States.

It, however, said he IGR of the respective states can improve through aggressive diversification of the economy to productive sectors rather than relying on the monthly Federation Account revenue that largely come from the oil sector.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Brands

MILO Cereal Launches New Online Campaign, ‘Beast Mode – Activated’

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MILO Cereal has launched its first major marketing campaign for its newly launched Protein cereal, via independent creative communications agency Connecting Plots.

Building on MILO’s brand message of fuelling active kids, the new campaign platform, ‘Beast Mode – Activated’, evolves the master brand’s focus on team sports.

This aims to celebrate how MILO Protein helps active kids unleash their own full potential, take their training to the next level and successfully compete with their peers.

The campaign launched on 16 April and will run across various social channels and online videos.

Connecting Plots creative partner Dave Jansen said the approach to the MILO Protein cereal campaign was about tapping into the teen mindset and being less overt and more authentic.

“Creating advertising that doesn’t feel like a ‘sell’ is the challenge when targeting teens,” Jansen said in a statement.

“We’ve shied away from the polished tropes of traditional, achievement driven sports ads to bring this to life in a way that hopefully gives life to a teenager’s desire to do their best, feel like they are stepping into their future adult self and showing how MILO Protein Cereal can help on that journey.”

Cereal Partners Worldwide’s marketing manager, Keara Deignan, added: “Aussies grew up with MILO cereal, it’s a staple of every Australian pantry.

“However, we’ve seen that as teens start to carve out their own identities, their consumption habits change so this product aims to keep pace with their active on-the-go lifestyle.”

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Business

Global Digital Consumer Spent $900B In 2020 – Mastercard

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According to Mastercard’s latest Recovery Insights report, this amounted to an additional $900bn being spent in retail online around the world in 2020. Put another way: in 2020, e-commerce made up roughly $1 out of every $5 spent on retail, up from about $1 out of every $7 spent in 2019.

For retailers, restaurants and other businesses large and small, being able to sell online provided a much-needed lifeline as in-person consumer spending was disrupted.

Roughly 20-30% of the Covid-related shift to digital globally is expected to be permanent, according to Mastercard’s Recovery Insights: Commerce E-volution. The report draws on anonymised and aggregated sales activity in the Mastercard network and proprietary analysis by the Mastercard Economics Institute. The analysis dives into what this means by country and by sector, for goods and services, and within countries and across borders.

“While consumers were stuck at home, their dollars traveled far and wide thanks to e-commerce,” says Bricklin Dwyer, Mastercard chief economist and head of the Mastercard Economics Institute. “This has significant implications, with the countries and companies that have prioritized digital continuing to reap the benefits. Our analysis shows that even the smallest businesses see gains when they shift to digital.”

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Venmo Launches Cryptocurrency Trading

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Venmo, owned by PayPal, is launching cryptocurrency trading for four major coins: Bitcoin (BTC), Ether (ETH), Litceoin (LTC) and Bitcoin Cash (BCH).

This service set to be widely available within the new few weeks, Venmo’s 70 million+ customers will be able to buy, hold and sell crypto directly within the Venmo app. The launch is offering users access to in-app guides to help them to better navigate the cryptocurrency trading space and will encourage them to share their cryptocurrency experiences via the Venmo feed.

Venmo users will be able to buy as little as $1 worth of cryptocurrency and can use either funds from their Venmo balance or from a linked bank account or debit card to buy and sell their holdings.

Over 30% of Venmo customers have already begun to purchase cryptocurrency or equities, according to the company’s research into 2020 customer behavior. Of these, 20% began their purchase during the COVID-19 pandemic, suggesting that the public health and concurrent economic crisis has accelerated trends in digitization and experimentation with new financial technologies.

Support for cryptocurrency on Venmo is facilitated through a partnership with Paxos Trust Company, a regulated provider of crypto products such as its stable coin and other services. Venmo owner PayPal is also the holder of a conditional Bitlicense from the exacting New York State Department of Financial Services. Conditional licensees, such as PayPal, are required to pair off with firms that have already been granted full-blown licenses — as, in this case, has Paxos.

Just under a week ago, PayPal CEO Dan Schulman hinted at developments underway since the payments giant first went live with its crypto offering in the United States in November of last year. Schulman said that PayPal aims to support the use of crypto for everyday transactions and to tap into smart contracts and other, more expansive features of blockchain technology. He also pitched the company’s vision of leveraging crypto for the attainment of a more “inclusive economy,” in which “things will be done much differently than today.”

 

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