2018 Fiscal Index: Rivers, Delta, Bayelsa lead ranking

Many Nigerian states will have to rev up their internally generated income and slow down on borrowing, a new Fiscal Sustainability Index published by BudgIT Nigeria, a budget transparency advocacy group has said.

The “2018 State of States’’ report, launched on Tuesday in Abuja by BudgiT, was sponsored by Bill and Melinda Gates Foundation.

The report ranked the 36 states in terms of fiscal stability and ability to cover recurrent expenditure without borrowings, with Rivers, Delta and Bayelsa taking the lead.

Meanwhile, Cross River, Osun and Ekiti emerged at the bottom of the ranking, meaning they lacked healthy financial profile, in terms of ability to cover recurrent expenditure without borrowing.

The Principal Lead, BudgIT, Gabriel Okeowo at the report launch, said their analysis showed that increase in statutory allocations, mainly guided by oil revenues had impacted on the finances of the states in 2018.

“One major highlight of this report is the Fiscal Sustainability Index, which saw a state like Rivers maintaining its top position due to its robust revenue profile and manageable recurrent expenditure obligation.

“Lagos dropped from 2nd to 4th place notwithstanding the state’s fiscal advantage, but owning to its unusually high overhead costs and increasing debts.

“We are extremely concerned about the poor fiscal management thinking in Cross River with its bogus budget plan for 2018 of N1.3 trillion, which weighed it down.