By Jeph Ajobaju, Chief Copy Editor
All the 36 states and the Federal Capital Territory (FCT) made N1.31 trillion as Internally Generated Revenue (IGR) in 2020 with Lagos topping the table with N418.99 billion, and aiming higher with N60 billion monthly IGR this year.
A report by the National Bureau of Statistics (NBS) shows that states’ IGR declined 1.93 per cent, from N1.33 trillion in 2019 to N1.31 trillion in 2020. But it rose 11.7 per cent compared to N1.69 trillion in 2018.
The decline is partly attributed to the Covid-19 pandemic which forced lockdown to curb the spread of the virus.
Information Minister Lai Mohammed is optimistic that states will rake in more IGRs from 2021 with Digital Switch Over (DSO) expected to boost coffers through value added services.
He told Lagos State Governor, Babajide Sanwo-Olu, on a visit to Ikeja that transiting from analogue to digital broadcasting nationally will provide FreeTv that will enable councils to collect radio and television licence.
FreeTV will be available on both Digital Terrestrial Television (DTT) and Direct To Home (DTH) transmission, Mohammed explained, saying FreeTV will also provide Push Video on Demand, Information Services, and Audience Measurement.
His words: “The DSO is not just about high fidelity sound and picture, it is about creating jobs, especially for our teeming youths, stimulating local content and empowering channel owners.
“In the next three years, the DSO is capable of creating one million jobs, in the manufacturing of Set Top Box or Decoder manufacturing; TV Production, Film Production, Distribution as well as TV and Online Advertising.”
According to Mohammed, people could cash in on Push Video-on-Demand to access Nollywood movies from the comfort of their homes through FreeTV, a platform that can also broadcast the policies and progrannmes of states.
“A major advantage of the DSO is that viewers will not pay subscription fees. Once they have acquired the Set Top Box and pay the once-a-year access fee, which is a token, its free viewing all the way.
“Millions of Nigerians who cannot afford to pay the rising subscription fees being charged by the Pay TV platforms can now enjoy the benefit of digital television. This is the meaning of bridging the digital divide.”
IGR by state
States generated N1.09 trillion from taxes in 2020, accounting for 83.3 per cent of total IGR. Tax revenue declined 2.25 per cent to N1.11 trillion compared to 2019.
Lagos recorded the highest IGR of N418.99 billion or 32.1 per cent of the total N1.31 trillion, followed by Rivers (N117.19 billion), FCT (N92.06 billion), Delta (N59.73 billion), and Kaduna (N50.75 billion).
Kebbi had the highest year-on-year growth of 87.02 per cent, next Ebonyi (87.3 per cent), Oyo (42.23 per cent), Borno (41.63 per cent), and Katsina (34.16 per cent).
Benue recorded the highest year-on-year decline (41.38 per cent), followed by Sokoto (37.93 per cent), Kwara (36.03 per cent), Jigawa (32.95 per cent), and Ogun (N28.44 per cent).
States recorded the highest quarterly IGR in Q1 2020 before the coronavirus lockdown in March. It dipped 25.53 per cent to N269.88 billion in Q2 2020.
They generated N338.57 billion in Q3 2020 but saw a decline in Q4 2020 to N335.25 billion.
Nigeria went into recession in Q3 2020 but recovered in Q4 2020.