Thread by @wFalabede

In continuation of the #StateOfStates started by @yinkanubi on Monday, I will be focusing on states revenue today. @oluwole_dada @ola2njee @AsiwajuOladimej @aminuArgungu @abiodunosemobor @J_teapot @AdeBanqie @Hammdriller
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https://twitter.com/yinkanubi/status/1092428910237765638

The analysis will focus on IGR, and FAAC at the state level, and distribution of revenue. Top and bottom states will be analyzed.

Reading the Geodata map - Light to dark blue is read from low to high value. We will explore the Internally Generated Revenue (IGR) %, Federation Account Allocation Committee (FAAC) fund, and total revenue (TR). To simply set the stage for future detailed analysis #StateOfStates

#StateOfStates
IGR As a % of T Revenue.
Two states recorded IGR of at least 60% of their revenue in 2018. Lagos IGR 70% while Ogun 61%. The closest is FCT 40%, followed by Rivers 33%. The rest of the states falls below 27%.
2 states with the lowest IGR % are Yobe 5% & Kebbi 6%

#StateOfStates Since FAAC as % of TR is the flip side of the IGR%. Kebi and Yobe are at the top with about 95% FAAC, bluest on the map. Lagos and Ogun are lighter with 30% and 39% FAAC respectively. High FAAC as % of revenue is not desirable.

#StateOfStates Distribution of revenue between IGR and FAAC reveals a states susceptibility to FGN's revenue volatility which is also connected to oil volatility.
A state with a high ratio of FAAC to Total Revenue will likely be more impacted when FGN revenue suddenly declines

#StateOfStates Again, Lagos lead the pack in total IGR. Lagos raised N283B, followed by Rivers N83.7B, Ogun 63.1, FCT 49, Delta 42.9. and none of the remaining states raised up to 26B. The lowest IGR is found in Yobe N2.9B followed by Kebbi N3.2B

The treemap below is to illustrate the size of IGR generated by each state for easier comparison. Lagos state generates more IGR than the next 4 states. It generates more IGR than 25 other states combined. Check out the treemap and the geodata map

The three tiers of government in the country [Federal, State, and Local Councils] Share revenue from the Federal Account Allocation Committee [FAAC]. Next is the FAAC allocation analysis for 2018. #StateOfStates

The highest FAAC went to Delta followed by Akwa Ibom. Both states received over 200B each. Followed by Rivers N172B, Bayelsa 153, Lagos 119, and Kano 84B. At the bottom are Osun 24B, and Cross River 37B. The remaining states received an average of N55B each.

The Geodata map reveals the high recipients as states in the oil-producing region. Osun's almost white colour signifies a very low IGR.

The treemap below is to illustrate the size of FAAC distributed to each state. Delta, Akwa Ibom, and Rivers are the top three based on the size they occupy on the treemap. Ekiti, Cross River, and Osun are at the bottom #StateOfStates

Total Revenue by states.

Lagos N402B, Delta N256B, Rivers, Akwa Ibom N256B, and Bayelsa N163B are the leading states in terms of TR while Cross River N49.9B, Ebonyi N48.7B, Gombe N47.5B, Zamfara N45.3B, Ekiti N43.3, and Osun N30.35 are at the bottom.
#StateOfStates

TR treemap also reveals that 9 states account for 50% of the total state revenue. It is seven that accounts for 50%. FAAC of 11 states constitutes 50% of all FAAC. IGR of four states equals 51% of total IGR.

#StateOfStates All the states combined generate about 25% of their total revenue from IGR. While almost 75% comes from the FGN.

Only Lagos and Ogun state are less susceptible to a sudden drop in FGN revenue. The FAAC to Total revenue ratio of the remaining 34 states plus the FCT is higher than 0.6 which leaves all of them to be highly susceptible to FGN revenue volatilities.

We will expand on this tomorrow. And by the end of the week, we will be able to connect all the dots to create a better picture of revenue, debt stock, and government services.