FinanceNews Update

Only 11 Nigerian States Projected to Cover Worker Salaries in 2024

In the fiscal year 2024, only 11 out of Nigeria’s 36 states are projected to generate sufficient income to cover the salaries of their workers, according to a recent analysis conducted by the Foundation for Investigative Journalism (FIJ).

The analysis, which compared the 2024 personnel costs and revenue estimates across all states, revealed that Kaduna, Edo, Enugu, Gombe, Kano, Kwara, Rivers, Lagos, Ogun, Osun, and Zamfara are the states expected to generate enough revenue to offset their personnel costs for the year.

For many of the remaining states, federal allocations make up more than 50% of their total revenue for the fiscal year. Consequently, these states heavily rely on federal government disbursements or loans to finance the salaries of their workers.

Key findings from the analysis include Kaduna State’s internally generated revenue (IGR) of ₦120,001,818,558, which surpasses its personnel cost of ₦76,206,260,777.

Similarly, Edo State’s IGR of ₦71,691,130,754.62 exceeds its personnel cost of ₦65,167,577,994.68, while Gombe State’s IGR of ₦22,318,245,500 slightly outweighs its personnel cost of ₦21,925,000,000.

Lagos State stands out with a substantial IGR of ₦1.251 trillion, contributing significantly to its ability to cover personnel costs. Other states like Rivers, Kano, and Ogun also exhibit relatively strong IGR compared to their personnel costs.

However, the situation is dire for several states where the personnel costs far exceed their IGR, highlighting the fiscal challenges faced by many state governments in Nigeria.

As these states grapple with financial constraints, efforts to boost internal revenue generation and reduce dependency on federal allocations become imperative for sustainable economic growth and development.

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Ibrahim Ismail

A passionate and highly skilled individual who has seamlessly blended the worlds of statistics, technology, and finance.

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