Rivers state tops the rank of Nigerian states with comparatively limited dependence on federally distributed revenue for its operations, a report by the civic organization BudgIT Foundation has shown.
The State of States report obtained by our correspondent from the BudgIT website shows that Lagos, Ogun, and Anambra States follow Rivers State.
This is coming barely one month after the federal high court in Abuja barred the Central Bank of Nigeria (CBN) and the Accountant General of the Federation from releasing allocations from the federation account to Rivers State pending when a validly constituted House of Assembly passes a lawful appropriation act.
The court barred banks from allowing the Rivers government and Governor Siminalayi Fubara to withdraw from the state’s accounts, saying that Governor Fubara's 2024 budget disbursement violated constitutional guidelines because he presented the 2024 budget to a four-member factional House of Assembly and not the 27-member faction.
Governor Fubara has said he will not be representing the 2024 budget, which records obtained by our correspondent show has been implemented up to the third quarter of 2024.
The BudgIT annual publication report shows that Rivers State topped the list of states with comparatively more public revenue left to implement the capital expenditure components of their budgets after fulfilling repayment obligations to lenders and their government's operating expenses.
"We analyzed state financial statements from the Debt Management Office, focusing on indicators like the ability to cover expenses through internally generated revenue without dependence on FAAC allocations. Rivers State excelled in this regard," said Ibukunoluwa James, the Research Analyst at BudgIT Foundation.
"The State of States report is our annual publication that evaluates fiscal sustainability and governance in the subnationals of the country," she added.
"We make use of the financial statements of the states. While we analyze this data, we send it back to the states to validate so we are not just working off of what we picked up.
"We also make sure that these numbers are validated and they are consumable for the public.
"When it comes to Rivers State's fiscal resilience and dependence on FAAC allocation, like every other state, Rivers State receives allocation from the federal government.
"As of 2023, River State received a total of N339.53 billion in FAAC allocation from the federal government, and also they generated N203 billion in IGR.
"While the FAAC allocation makes up 62 percent of their total revenue, they were able to generate N203 billion, and also, when it comes to loan repayment, their loan decreased."
James emphasized how the report’s findings could serve as a roadmap for further fiscal improvements.
"This data provides an opportunity for Rivers State to strengthen its fiscal management strategies and address gaps in governance that might arise from such reliance on internal resources," she said.
