6 states in Nigeria that will keep enjoying despite recession

The National Bureau of Statistics (NBS) has said the economy shrank into recession by 0.36 percent to hit its lowest point in 25 years, in the first quarter of 2016.

However, amidst the country’s recession, there are some states that may not feel the harshness of the economic while the recession last. These states are viable to the extent of survival due to their Internally Generated Revenue (IGR) capacity within the state with or without the monthly statutory allocations from the federal government.

Here are 6 states that could still cushion recession harshness with their IGR:

1. Lagos

The metropolis state with about 20 million population, was ranked highest in terms of IGR volume with a total of N268.23 billion during the year. Meanwhile the recent oil discovery, entitles the state to 13 percent derivation for oil producing states. However, the state government can boost effective utilization if its internally revenue for running the state affairs, as the state still remains the financial centre of the country.

2. Imo

Ability of the state government to diversify its economy, without solely relying on crude oil despite the state’s richness in these natural resources as an oil producing state. The cultivation of agricultural produce embraced by the populace of the state has helped the government to increase its internally generated revenue volume.

3. Bayelsa

Although the state is among the top beneficiary of federal allocation has one of the largest crude oil and natural gas deposit in Nigeria, but the state has the lowest population in the country. Moreover, the local population engage in fishing on a subsistence and commercial level.

4. Kano

Kano state is the second largest industrial center in Nigeria and the largest in Northern Nigeria with textile, tanning, footwear, cosmetics, plastics, pharmaceuticals, ceramics, furniture and others include agricultural implements,  food and beverages, dairy products, vegetable oil, animal feeds. Although the state had abysmal IGR records from 2011 to 2013, it is still a major centre for the production and export of agricultural products like hides and skins, peanuts, leather, textile, grains and cotton.

5. Oyo

The 5th most populated state in Nigeria with an overwhelming population but its arable agricultural lands might be capable of staying well while the recession lasts. Despite state government salary indebtedness of workers, some of the civil servants still practice subsistence farming.

6. Rivers

Prior to the discovery of oil in commercial quantity, agriculture was the primary occupation of the people, as one of the leading states in the production of yam, cassava, cocoyam, maize, rice and beans. Major cash crops produced are oil palm products, rubber, coconut, raffia palm and jute. Other crops grown for food include, vegetables, melon, pineapples, mango, pepper, banana and plantain. The fishing industry is an important sector in the state, besides fishing being lucrative, it is also a favourite past time activity of its populace.

Even though the declining global oil prices has increased the pressure on states to explore alternative ways to shore up their revenue earnings but only few of the states have improved their internally generated revenue.

Meanwhile, the federal government itself had set a bad example by remaining over-reliant on oil revenues to fund its operations, neglecting taxes for many years.

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