Zamfara leads Nigeria with the highest IGR growth. Find out what government measures drove this remarkable achievement in revenue generation.
The Zamfara State government reported that it achieved the highest growth in internally generated revenue by choosing not to rely on funds from the Federal Account Allocation Committee.
Sulaiman Idris, the spokesperson for the Zamfara Governor, revealed this information in a statement on Monday.
This development follows Zamfara State achieving the highest IGR growth at 240.44 percent, increasing from N6.51 billion in 2022 to N22.61 billion in 2023.
In response to the report, the government credited this achievement to a heightened focus on revenue-generating aspects within the state.
The state reported a decrease in its reliance on FAAC, with dependency falling from 90.52 percent in 2022 to 74.66 percent in 2023.
Idris stated that the state’s total revenue grew by 65.35 percent in 2023, reaching N144.95 billion compared to N87.68 billion earned in the previous year.
This impressive achievement is due to the state’s turnaround from a 49.75 percent decrease in its 2022 IGR, boosting it by 240.22 percent from N6.51 billion in 2022 to N22.16 billion in 2023.
Zamfara’s internally generated revenue saw substantial growth year-on-year across various components. Income tax increased by 142.26 percent, rising from N5.03 billion in 2022 to N12.18 billion in 2023. Licences experienced a dramatic surge of 5921.22 percent, going from N22.78 million in 2022 to an impressive N1.37 billion in 2023, while fees grew by an astounding 3610.38 percent, climbing from N82.44 million in the previous year to reach N3.06 billion this year.
In addition, fines surged by 1924.52% from N24.15 million in 2022 to N491.32 million in 2023; sales increased by 32.49%, rising from N772.06 million in 2022 to N1.02 billion in 2023; earnings soared by an impressive margin of 542.59%, going from N87.53 million the previous year to reach N562.48 million this year; and revenue generated from other taxes experienced a significant growth of 519% as it climbed from being at approximately half a billion (N412), reaching upwards into multibillion figures—specifically about two-and-half thereof within just one fiscal cycle!
Moreover, the state earned income from renting government buildings and lands, investment returns, and reimbursements—revenue streams that saw no activity in the previous year. Zamfara can show dedication to enhancing its financial sustainability by partnering with the Federal Government to explore its natural resources and diversify its revenue sources.
In 2023, the state’s total revenue rose by 65.35 percent to N144.95bn from N87.68bn in the previous year. In terms of recurrent revenue structure, the state showed decreased vulnerability to external fiscal shocks as its reliance on FAAC dropped from 90.52 percent in 2022 to 74.66 percent in 2023, even though FAAC allocations increased by 4.93 percent from N62.21bn to N65:28 billion over this period due mostly higher IGR contributions where it reached an impressive ratio enhancement marking a rise – pegged at greater than doubling somewhere above nine topping–22 point sixteen percentage points gained lately last annum!
Peoplesmind
