Understanding the 2023 Revenue Shortfall: 16 Nigerian States and FCT’s LGA Breakdown
In 2023, 16 states in Nigeria, along with the Federal Capital Territory (FCT), reportedly failed to generate any revenue from their Local Government Areas (LGAs).
This situation raises concerns about the fiscal management and financial health of these regions, as local governments are expected to contribute to overall state revenues through various means, including taxes and levies.
The lack of revenue generation at the local government level can be attributed to several factors, including inadequate tax administration, limited economic activities, and inefficiencies in governance.
This has implications for development projects, public services, and overall economic growth in the affected states.
The federal government and relevant authorities may need to reassess the revenue collection strategies and support mechanisms for LGAs to ensure they can effectively contribute to state and national economies.
Enhanced training for local officials, better infrastructure, and improved economic policies could help address the challenges faced by these local governments.
Here’s a summary of the top revenue-generating states in 2023:
- Lagos: N10.49 billion
- Ebonyi: N6.13 billion
- Kwara: N3.35 billion
- Oyo: N3.11 billion
- Jigawa: N2.89 billion