States, FCT IGR hit N324.59bn in Q4 2018 – NBS

…Says Nigeria unemployment rate to hit 33.5% by 2020

…As Nigeria’s total debt stables at N24.38trn in 2018

Motolani Oseni

The National Bureau of Statistics (NBS) said the internally generated revenue (IGR) of 36 states and the Federal Capital Territory (FCT) for the fourth quarter of 2018 stood at N324.59 billion compared to N264.34 billion recorded in the third quarter of the same year.

NBS disclosed this in “IGR at State Level for Fourth Quarter and Full Year 2018” posted on its website.

The Bureau, in its latest data, also, stated that Nigeria’s unemployment rate may reach an all-time high of 33.5 per cent by 2020, which may have compelled the Federal Ministry of Labour and Employment to start thinking out of the box.

The NBS, however, noted that the new IGR figure of N324.59 billion indicated a positive growth of 22.79 per cent quarter-on-quarter and 24.82 per cent year-on-year.

It said 31 states and the FCT recorded growth in IGR while five states recorded a decline in IGR quarter-on-quarter at the end of the fourth quarter, 2018.

The report said the net Federation Accounts Allocation Committee (FAAC) allocation in the fourth quarter 2018, was put at N2.56 trillion.

The report said the total revenue available to the states including the FCT was N3.74 trillion in the quarter under review.

However, it said the value of foreign debts stood at 4.23 billion dollars while domestic debt was N3.85 trillion at the end of the year 2018.

The states IGR data was computed by the NBS and the Joint Tax Board from official records and submissions by the 36 State Boards of Internal Revenue.

These submissions were then validated and authenticated by the Joint Tax Board chaired by the Federal Inland Revenue Service. The board has the NBS and the 36 State Boards of Internal Revenue as members.

Consequently, the latest projection of unemployment rate of 33.5% by 2020 has prompted a two-day stakeholders’ workshop in Abuja on Thursday, with the theme: “Breaking the Resilience of High Unemployment Rate in the Country”.

Although the Minister of Labour and Employment, Chris Ngige was not on ground to declare the workshop open, as he sent a representative, stakeholders at the workshop expressed worries that the increasing statistics of people without meaningful employment in the country was assuming an alarming rate.

Currently, the unemployment rate stands at 23.1 per cent, while under-employment is estimated to be in the threshold of 16.6 per cent according to data released by the National Bureau Statistics (NBS) as at 2019.

They, however, posited that the high prevalence of crimes such as murders, insurgency, militancy, armed robbery, kidnappings, drug abuse, may not be unconnected with the growing number of unemployed.

“It is a worrisome status as the global poverty capital (World Bank, 2018); as if this situation is not scary enough, it is projected that the unemployment rate for this country would reach 33.5 per cent by 2020, with consequences that are better imagined, if the trend is not urgently reversed.

“It is a thing of joy to note that Nigeria has not been resting on her oars over the years in terms of dedicated efforts to curb the unemployment problem, “ the minister’s representative said.

According to the ministry, there have been various government social intervention programmes, targeted at reducing youth unemployment and eradicating poverty, have been implemented by different administrations since Nigeria gained independence.

The Minister also said that available records show that between 1972 to date, about 14 of such programmes have been implemented.

Meanwhile, the Director-General, Debt Management Office (DMO), Ms Patience Oniha, had said that Nigeria’s total public debt as at 31st December 2018 stood at N24.38 trillion.

Oniha said that the figure comprised of debt owed by the Federal Government, States and Federal Capital Territory (FCT).

“Further details provided in the report showed that more progress was made towards achieving the target Debt Stock mix of 60 per cent (Domestic) and 40 per cent (External).

“The share of domestic debt dropped to 68.18 per cent from 73.36 per cent as at Dec. 31, 2017, thereby achieving a mix of 68.18 per cent and 31.82 per cent in the debt stock.”

She said the federal government loans accounted for 78 per cent of the figure, while states and the FCT accounted for 22 per cent.

The Federal Government, she said, has an external debt stock of N6.4 trillion and Domestic at N17.11 trillion, culminating in N19.23 trillion, while the states and the FCT have external debt of N1.25 trillion and N3.85 trillion domestic debt, culminating in N5.15 trillion.

Oniha said that the Federal Government’s domestic debt stock includes N331.12 billion Promissory Notes issued to Oil Marketing Companies and State Governments in December 2018.

She added that the strategy of using relatively cheaper and longer tenor external funds was achieving the expected objectives, some of which was to create more space for other borrowers in the domestic market.

“Other objectives are to extend the average tenor of the debt stock in order to reduce refinancing risk and increase external reserves.”

She also said that the implementation of the strategy led to an injection of N855 billion through the redemption of Nigerian Treasury Bills (NTBs) in 2018.

“The issuance of the bond will meet the needs of annuity funds and other long term investors while also developing the domestic capital market and reducing the re-financing risk of the Federal Government.

“Another area of focus will be the management of risks associated with the debt stock to mitigate debt service costs.”

She said that as captured in the 2019 budget proposal before the National Assembly, the Federal Government would borrow N1.6 trillion to finance the budget deficit.

She said N824 billion of the amount would be borrowed domestically through Federal Government Bonds, Sukuk, Green Bonds and Savings Bonds.

The other N824 billion is expected to be financed externally from concessional sources as they are cheaper and are longer-termed funds for infrastructure, she added.

Nigeria’s debt office also said it expected the government to approve total borrowing of N1.649 trillion in 2019.