The Nigeria Extractive Industries Transparency Initiative, NEITI has said the 2019 budgets as already presented by thirty five states cannot be adequately funded even by combined net Federation Allocation Account Committee, FAAC disbursements to each state in 2017 and 2018.
NEITI in its latest Quarterly Review released in Abuja also noted that total state revenues FAAC and Internally Generated Revenue, IGR in 2017 and 2018 cannot fund 2019 budgets of twenty eight states.
NEITI Spokesman Orji Ogbonnaya Orji said there is no state whose net FAAC disbursements in either 2017 or 2018 can adequately finance their budgets for 2019, Net disbursements to states in 2017 as a percentage of the 2019 budgets ranged between two point two five per cent for Cross River and forty three appoint one per cent for Yobe states.
According to the NEITI, the gap in the ability of FAAC disbursements to finance state budgets has made it inevitable for most of the states to rely more on borrowing as against the urgency of embarking on creative measures to improve internally generated revenues (IGR).
