Only few states can confidently survive without monthly federal allocation, as the Annual State Viability Index (ASVI) published by Economic Confidential has revealed.
According to The Cable, the ASVI measured the viability index of states using each state’s Internally Generated Revenue (IGR) as a percentage of its federal accounts allocation for the year.
Lagos, Rivers, Ogun, Kaduna, Oyo and Anambra are the top six states that can survive without federal allocation.
States with an IGR of less than 10% of their total receipts from the federal allocations are considered insolvent.
According to the report, these six states can survive without federal allocation because they generate high revenues locally. For instance, Lagos in 2020 collected a federal allocation of N299 billion but generated N418 billion locally (139%).
Also, Rivers state which generated an IGR of N117 billion collected N198 billion as federal allocation (58%) while Ogun, made N50 billion IGR compared to the federal allocation of N88 billion (57%) it received.
Kaduna state generated N50 billion locally while its federal allocation was N124 billion (40%) while Oyo state with an IGR of N38 billion got N127 billion as federal allocation (29.7%) while Anambra generated N28 billion compared to its federal allocation of N94 billion (29.6%).