Lagos, Delta rank top in states’ first sub-national index
by BALA AUGIE & LOLADE AKINMURELE
November 2, 2017 | 2:00 am| | | Start Conversation
Lagos State came out on top, followed closely by Delta and River states, on the maiden National Competitiveness Council of Nigeria (NCCN) index, which ranked all 36 states and the Federal Capital Territory across four key areas: Human Capital, Infrastructure, Economy and Institutions.
Borno and Gombe states ranked 36th and 37th respectively in the index.
The financial capital of Nigeria fared best in the areas of Infrastructure and Economy, while northern states Borno and Zamfara lost significantly in the area of Human Capital – plagued by issues with healthcare and education.
According to the report, all of the states performed strongly in at least one of the four broad themes, and 23 indicators.
The new Sub-National Index (SNI) presents a significant platform for research and discussion, elevating the national conversation about moving Nigeria away from crippling oil dependency, and embracing a diversified economy with sustainable market-based development.
The report also emphasizes the importance of competitiveness at the state level, highlighting local and state governance, and the vital role each state plays in the overall path to job-rich growth.
“In aggregate, Nigeria remains challenged in its competitiveness,” NCCN CEO Matthias Chika Mordi said.
“We expect the SNI to have a catalytic effect in competitive state policies which will ultimately lead to greater business productivity, resulting in job creation and poverty reduction.”
The NCCN collected data for its unprecedented report in collaboration with the National Bureau of Statistics (NBS) and private surveying agencies.
The organization conducted a household survey across all 36 states and the FCT, resulting in a sample of 8,147 households.
They also conducted a business climate survey, collecting information from two thousand (2000) private business establishments chosen at random, and using probability proportional to size (PPS) within each sector. Out of this number, 1820 businesses responded to the survey, representing a 91 percent response rate.
“The index is a culmination of 20 months of intense work,” Mordi added.
“We’ve worked rigorously to ensure objectivity and transparency in our methodology, data collection, analysis and interpretation. Where possible we applied effective tools for cross-validation, and ease of replicability.
It is by no means perfect, but we envisage improvements with subsequent iterations of the index.”
Bismarck Rewane, managing director and chief executive officer of Financial Derivatives Company says “Delta State doesn’t have infrastructure and that infrastructure in the state is declining.”
Rewane however agrees about the ranking of Lagos.
The latest report on Internally Generated Revenue (IGR) by the National Bureau of Statistics (NBS) reveals that only Lagos and Ogun states generated more revenue than their allocations from the Federation Account by 169 percent and 127 percent respectively and no other state came close to 100 percent of IGR to the federal largesse.
The IGR of the 36 states of the federation totalled N801.95 billion in 2016 as compared to N682.67 billion in 2015, an increase of N119.28 billion.
Outside federal handouts, most states are not viable.
The states that may not survive without the Federation Account due to poor internal revenue generation include Borno which realized a meagre N2.6bn compared to a total of N73.8bn it received from the Federation Account Allocation in 2016 representing about 4 percent.
Others are: Ebonyi with IGR of N2.3bn compared to federal allocations of N46.6 bn representing 5 percent; Kebbi N3.1 bn compared to federal allocations of N60.88 bn representing 5.14 percent; Jigawa with N3.5 bn compared to N68.52bn of federal allocations representing 5.15 percent and Yobe with IGR of N3.24 bn compared to N53.93bn of allocations representing 6.0 percent within the period under review.
Other poor internal revenue earners are Gombe which generated N2.94 bn compared to allocations of N46 bn representing 6.26 percent; Ekiti generated N2.99 bn compared to federal allocations of N47.56 bn representing 6.28 percent; Katsina generated N5.54 bn compared to allocations of N83 bn representing 6.65 percent and Sokoto N4.54 bn compared to allocations of N65.97 bn representing 6.88 percent.
Meanwhile Lagos State remained consistent in its number one position in IGR with a total revenue generation of N302bn compared to federal allocations of N178 bn which translates to 169% in the twelve months of 2016.
It is followed by Ogun State which generated IGR of N72.98 bn compared to allocations of N57bn representing 127 percent. Others with impressive IGR include Rivers with N85 bn compared to federal allocations of N134 bn representing 63 percent; Edo with IGR of N23bn compared to allocations of N59bn representing 38 percent.
Kwara State however with low receipt from the Federation Account has greatly improved in its IGR of N17bn compared to allocations of N49bn representing 35 percent while Delta with IGR of N44bn compared to allocations of N126bn representing 6.88 percent.
BALA AUGIE & LOLADE AKINMURELE
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