On Anambra’s Internally-Generated Revenue

By IfeanyiChukwu Afuba

After 20 years of fourth republic democracy, the country still operates a military era revenue formula that allocates a hefty fifty-two percent of national earnings to the federal government and pittance of twenty six percent to states, the centres of development. Still riding on this skewed framework, a state governor is expected to tar federal roads in his state, with or without reimbursement by the central authority. State governments have an unwritten responsibility to fund the operations of federal security agencies and other federal establishments domiciled in their territories. And now, by some strange twist of fate, clamour for democracy benefits has been rising in the states as the petro – dollars diminishes. Can the states pull through the bind from internally generated revenue? Willie Obiano’s Anambra State presents an interesting study.

In 2013, a year before the advent of the present administration, Anambra’s locally sourced revenue stood at N8.7b. The figures did not change significantly in the intervening years until 2018 when N17b was recorded. 2019 saw the internally generated receipt rise to N26b. According to Dr Dave Nzekwu, Chairman of the State’s Internal Revenue Service, the 2020 earning is projected at N30b, notwithstanding the Covid-19 pandemic.

Realising the 2020 target would be a notable improvement but nonetheless under-performance in the context of Anambra State’s potentials. In 2019, the commercial power of the southeast came second behind Enugu in highest revenue earning.

The National Bureau of Statistics estimates that of Anambra’s 4.5m population, 1.2m are into one form of trading or the other. However, data from the state revenue service shows that outside those on PAYE, only 2,148 paid income tax in 2018. Using the NBS figures, it’s contended that Anambra State could generate N120b annually in income tax returns alone.

There is no debating that Anambra State needs all the additional revenue it can muster. Governor Willie Obiano presently has his hands full with ongoing capital-intensive works. They include a number of housing estates, Awka International Conference Centre, the Aguleri Otu longest bridge in the southeast, Umueri International cargo airport, Awka modern stadium among others.

Yet, it is a testament to the humanity of his government that in spite of the acute need for funds, Governor Obiano recently approved refund of 10percent of taxes paid by traders in 2019 as Covid 19 palliative. He also waived the N5b of interest and penalties arising from N40b audited tax debt owed the government to the defaulters. It is hoped that the respite would enable the affected strengthen their businesses.

Afuba wrote from Awka, Anambra State.

Published By: Admin

Hon. CARL UMEGBORO is a legal practitioner (Barrister & Solicitor of the Supreme Court of Nigeria and human rights activist. As an advocate of conflict resolution through ADR (Alternative Dispute Resolution), he has acquired intensive training and has been inducted into The Chartered Institute of Arbitrators (United Kingdom) as an Associate. He is a prolific writer and public affairs analyst. Prior to his call to Bar as a lawyer, he has been a veteran journalist and columnist in all national newspapers, and has over 250 published articles in various newspapers to his credit. Barrister Umegboro is also a regular guest-analyst to many TV and radio programme on crucial national issues. He can be reached through: (+234) 08023184542, (+234) 08173184542 OR Email: umegborocarl@gmail.com

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