Cumulatively, Nigeria’ s total debt increased from N5. 39tn in 2019 to N5. 86tn in 2020. This was driven largely by exchange rate volatility which saw the value of the naira jump from N305. 9/$1 in 2019 to N380/$1 as of December 31st 2020.
The citizens of the country have been complaining of severe recession and high inflation rate of goods and services. No doubt, the Coronavirus pandemic has a hand in the economy of the country just as other countries of the world are yet to recover from the effects of the pandemic.
According to the Fiscal performance report sometime ago, States such as, Rivers, Kano, Lagos, Anambra and Ogun states were ranked the top five states with good performance in terms of Internally generated revenue (IGR) and Value added tax (VAT).
This year, Ogun and Kano states could not join the other top five states and so they were replaced by Ebonyi and and Kebbi States.
However, only three (3) states in the country were able to meet their operating expenses obligations with a combination of their Internally generated revenue and Value Added Tax according to the 2021 fiscal performance ranking.
The three states are Rivers, Lagos and Anambra State. Bayelsa was seen to settle at the bottom of the list.
Rivers State topping the list again could be that infrastructural developments may be one of the reasons for the continues position, and so every other states should try to adopt Rivers’ pattern.
Furthermore, to complement efforts in
raising revenue and blocking revenue
leakages, states also require a rapid build- up
of capacity in deploying custom and
innovative Public- Private Partnership (PPP)
models to deliver on critical infrastructure projects and programs.
This is especially in key sectors like Health, Education, Housing, and Agriculture given the shrinking fiscal space in which states are operating and will continue to operate in the next few years.