Published in Governance
A review of Anambra State’s budget performance report for the first quarter of 2022 shows that the State’s internally generated revenue (IGR) for the first quarter (Q1) of this year fell short of its prior expectations. This was noted in the state’s First Quarter 2022 Budget Performance Report.
May 27th, 2022
A review of Anambra State’s budget performance report for the first quarter of 2022 shows that the State’s internally generated revenue (IGR) for the first quarter (Q1) of this year fell short of its prior expectations. This was noted in the state’s First Quarter 2022 Budget Performance Report.
The Anambra State Accountant General (AG), Dr Sir Chukwudi Okoli, FCNA, who signed the Report, regretted that the State’s FAAC revenue was N15.3 billion and its internally generated revenue (independent revenue) was N8.3 billion “representing 23.3% and 22.1% respectively as against the supposed 25%.”
“The above shows that the overall performance of the State Recurrent Revenue stood at 22.8% as against the ideal 25%”, the AG added.
He blamed the shortfall in the State’s internally generated revenue in the first quarter specifically on “insecurity, change in Government/administration and suspension of IGR collection.”
On October 14, 2021, the immediate past Governor of Anambra State, Willie Obiano, presented a budget of N141.9 billion for the 2022 fiscal year to the Anambra State House of Assembly for approval.
Among other sources of revenue for states is their Internally Generated Revenue (IGR). In fact, IGR ought to be the main source of revenue for a State to be regarded as financially self-reliant.
Thus, during his presentation of the 141.9 billion budget last year, Mr Obiano said that N40.36 billion was expected to be generated through IGR. This means that in each quarter, the state sets a target to generate at least N10.09 billion internally.
Put differently, for each quarter, the Anambra state hoped to achieve 25% of its targeted N141.9 billion IGR for the fiscal year. But the budget performance report has shown that the state was unable to meet its target for Q1.
According to the Q1 budget performance report, Anambra state generated N8.9 billion as internal revenue in the first quarter of 2022. That is 89% of the projected 10.09 billion set for Q1.
Item | Targeted Amount in the 2022 Budget (N’B) | Targeted Amount Per Quarter (Original Divided by 4) (N’B) | Amount Achieved in Q1 2022 (N’B) | Performance in Q1 2022 (% of Targeted Amount in the 2022 Budget) |
Independent Revenue (IGR) | 40.37 | 10.09 | 8.92 | 22.1% |
In other words, Anambra state only achieved 22.1% performance in its independent revenue as against the supposed 25% set for the first quarter.
Compared with the corresponding quarter of 2021, there was a slight improvement this year. In Q1 2021, Anambra recorded only 21% performance in its independent revenue set for the quarter against the ideal 25%.
The total projected IGR for 2021 was N36.58 billion. This means that at least N9.14 billion was to be generated per quarter (i.e 25% performance in each quarter). For Q1, only 21% performance was reached.
Although the performance improved slightly in Q1 2022, the shortfall recorded in the state’s independent revenue this year was attributed to insecurity in the state among others — the change in government and suspension of IGR collection in the state.
Recently, the South-East region has been battling with a crisis bordering on agitation for secession, making it one of the conflict-impacted regions in the country at the moment.
While the 5 states in the region are affected, the situation in Anambra is worsening. Some parts of the state have been described as no-go areas due to the prevalence of attacks. This no doubt has impacted businesses in the state and by extension, the government’s revenue.
If this trend continues, the state may be unable to meet its IGR target for the remaining quarters of the year, which may result in an overall low budget performance for the fiscal year.
Support good journalism - the cornerstone of a well-informed society. When you stand behind quality reporting, you empower truth, accountability, and transparency.
Today, a new generation of Nigerians live through the country’s prolonged battle with two of its biggest socio-economic deficiencies – a protracted housing deficit and recurrent budget deficits.
A recent review of the 2019 Auditor General’s report by Dataphyte reveals that there was an unexplained net change of N668.162 billion in reserves of the consolidated statement of changes in net assets and equity.
Leading Media research and data analytics organisation, Dataphyte has released its maiden Dataphyte Advisory Note titled “the Nigerian post-oil Economy Advisory Note.
A review of Anambra State’s budget performance report for the first quarter of 2022 shows that the State’s internally generated revenue (IGR) for the first quarter (Q1) of this year fell short of its prior expectations. This was noted in the state’s First Quarter 2022 Budget Performance Report.
