It’s laughable to see governors line up to abuja in the name of Federal allocation every end of month. The statistics are there; some states should be scrapped for inability to be creative and grow their internally generated revenue for the good of the states economy; but No! We must line the way to abuja, our sirens blaring.
This is utterly ridiculous.
Having covered states in Nigeria for the past 21 years as a reporter for some of the most credible media organizations, I make bold to say much more could be done to generate the much needed revenue by States and create jobs in the process, while reducing crime rate overall.
There are several strategies that Nigerian states can adopt to increase their Internally Generated Revenue (IGR):
1. Diversify the economy: Nigerian states can reduce their dependence on oil revenue by diversifying their economy into sectors such as agriculture, manufacturing, tourism, and technology. This can help create new revenue streams and boost the overall IGR.
2. Improve tax administration: States can strengthen their tax administration systems by implementing efficient and transparent tax collection processes. (Do away with touts brutalizing individual on the streets to collect taxed from bike riders and petty traders) This can include improving taxpayer registration, simplifying tax filing procedures, and enhancing the enforcement of tax laws.
3. Expand the tax base: States can expand their tax base by ensuring that a larger proportion of the population is included in the tax net. This can be achieved through effective taxpayer identification efforts and better compliance enforcement.
4. Enhance revenue collection: States can also explore innovative ways to enhance revenue collection, such as leveraging technology for better tax monitoring and enforcement, improving tax compliance mechanisms, and reducing leakages in revenue collection processes. (The culprit in this case are the Agbero’s)
5. Encourage public-private partnerships (PPPs): States can promote PPPs to attract private sector investments and expertise in revenue-generating activities. This can help stimulate economic growth and increase the state’s revenue potential.
6. Prioritize investment in infrastructure: Investing in critical infrastructure projects can attract businesses, create employment opportunities, and generate additional tax revenues for the state.
7. Improve ease of doing business: Nigerian states can work towards creating a conducive business environment by reducing bureaucratic bottlenecks, streamlining regulatory processes, and providing incentives for businesses to invest and operate within their jurisdiction.
It is important for Nigerian states to adopt a multi-faceted approach, combining these strategies with effective governance, transparency, and accountability measures, to ensure sustainable and long-term growth in their IGR.
Currently a number of states seem out of ideas on how to go about these easy strategies, rather they display contentment with Federal allocations.
Yes it’s true that education has dealt a severe blow on the economy of most Northern state, this Is a more compelling reason why they must introspect and educate their citizens.
Making the ultimate sacrifice of harnessing resources buried deep in the ground and maximizing the human resource base may just be the game changer for the North and indeed the entire country.
The elite class must see the opportunity to allow businesses to sprout and support them, they must! for the lack of support draws more risk of criminality where they themselves (the elite) will become targets to the uneducated lot.
Certainly! In addition to the strategies mentioned earlier, Nigerian states can also focus on improving infrastructure and access to essential services. This includes investing in transportation networks, power supply, and internet connectivity, which are crucial for businesses to thrive.
Furthermore, states should prioritize skills development and education to ensure a skilled workforce that meets the needs of the business sector. This can be achieved through partnerships with educational institutions and vocational training programs.
To attract both domestic and foreign investment, Nigerian states can establish special economic zones or industrial parks that offer attractive tax incentives, streamlined licensing processes, and necessary infrastructure for businesses to set up and operate efficiently.
Another aspect to consider is fostering innovation and entrepreneurship. States can support start-ups and small businesses by providing access to capital, mentorship programs, and creating incubation centers that facilitate knowledge sharing and collaboration.
Moreover, efficient and transparent land and property registration processes can encourage investment in real estate and spur economic development.
Lastly, Nigerian states should actively engage with the private sector and involve them in decision-making processes. This can be done through public-private partnerships, regular dialogues, and consultations, ensuring that policies and regulations are business-friendly and reflect the needs of the industry.
By implementing these measures, Nigerian states can create an enabling environment that attracts investment, fosters economic growth, and boosts the state’s revenue generation for sustainable development.
I beg states Governments to use what they have comparatively advantaged. We all can’t live in Lagos that has just been declared the most expensive state to live in in Nigeria and possibly in Africa.
President Tinubu is in the early stages of his administration. We watch closely to see if he has a word of encouragement for states because surely the days of going to Abuja cap in hand must also be GONE!
Gimba Umar
C.E.O
Control TV
