A recently released NBS report indicated a 20.92% rise in Internally Generated Revenue (IGR) in 2019. The year on year rise saw total IGR hit ₦1.33 trillion. The rise was largely driven by revenue generated from income tax which accounted for 60.7% of IGR. Lagos state as the highest contributor with ₦398.73 billion accounted for 29.88% of total revenue generated2. On the other hand, Taraba state was the lowest contributor with ₦53.04 billion. The improvement in tax compliance stands to make provision for state-level fiscal sustainability as well as a continued increase in total IGR. State governments can leverage on the fall in demand for oil to identify innovations and muster the political will required to expand their IGR base.
June 5, 2020
Nigeria Economic Update (Issue 21)
Related
Nigeria Economic Update(Issue 31)
Recent data on Consumer
Price Index (CPI) indicates significant increase in general price level for the
sixth consecutive month. Headline inflation increased by 0.9 percentage points from
15.6 per cent recorded in May to 16.5 percent in June the highest
rate recorded since October 2005 (an 11-year high). The core sub-index
increased from 15.1 percent to 16.2 percent while the food sub-index stood at
15.3 percent, an increase of 0.4 percent from the preceding month of May. Higher
prices of domestic/imported food and other items, as well as increased energy
cost were major drivers of the increase. This is probably explained by the
exchange-rate pass-through, given the significant depreciation of the naira.