“An average state saw an increase in nominal revenues between 2021 and 2022 of 16.1%,” it stated in its most recent Nigeria Development Update. It is predicted that this will represent a decline in real terms for most states due to the high inflation rate.
Despite a nominal rise in federal funding for the states, the majority of them were dealing with declining tax revenues and trying to mitigate the effects of record-high inflation and state-level depreciation.
About 25 states experienced a revenue shortfall in the first quarter of 2023, with internally produced revenue declining by 3.07% quarter over quarter.
The 25 states made N182.26 billion in Q1 2023, according to The Spectator report, a N5.77 billion decrease from the N188.03 billion they made in Q4 2022.
The 36 federated states received N713.57 billion as federal allocation during this time, demonstrating the states’ continued reliance on the federal government.
