“BudgIT 2024 Ranking: Zamfara Tops Nigeria in IGR Growth – What This Means for the State”

Zamfara State has been recognized as the fastest-growing state in Nigeria regarding Internally Generated Revenue (IGR), according to BudgIT’s State of States Report for 2024, released last week. This annual report evaluates the fiscal performance and sustainability of all Nigerian states.

A statement from Zamfara Governor Sulaiman Bala Idris highlighted that the state’s remarkable 240.44% growth in IGR is attributed to its strategy of reducing dependence on the Federal Account Allocation Committee (FAAC). This substantial improvement enabled Zamfara to rise from the last position (36th) in 2023 to 26th in the latest rankings.

The BudgIT report noted that Zamfara’s IGR grew from N6.51 billion in 2022 to N22.16 billion in 2023, reversing a previous decline of 49.75%. Key contributors to this growth included:

• Income Tax: Increased by 142.26%, from N5.03 billion to N12.18 billion.
• Licenses: Surged by 5921.22%, from N22.78 million to N1.37 billion.
• Fees: Grew by 3610.38%, from N82.44 million to N3.06 billion.
• Fines: Rose by 1924.52%, from N24.15 million to N491.32 million.
• Sales: Increased by 32.49%, from N772.06 million to N1.02 billion.
• Earnings: Expanded by 542.59%, from N87.53 million to N562.48 million.
• Other Taxes: Climbed by 519.71%, from N412.03 million to N2.55 billion.

Zamfara also generated revenue from previously unmonetized sources, such as rent on government properties and investment income, demonstrating a commitment to enhancing its financial sustainability. The state aims to further diversify its revenue streams by collaborating with the federal government to explore its natural resources.

Overall, Zamfara’s total revenue rose by 65.35%, reaching N144.95 billion in 2023, up from N87.68 billion in 2022. The state’s reliance on FAAC allocations decreased from 90.52% in 2022 to 74.66% in 2023, despite a slight increase in FAAC funding from N62.21 billion to N65.28 billion. The IGR to recurrent revenue ratio improved significantly, rising to 22.16% in 2023 from 9.48% the previous year.