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Abia State targets N18bn in annual IGR

By on August 25, 2015

Abia State Government is targeting an annual Internally Generated Revenue of N18bn, as the state’s new administration steps up efforts to plug leakages and increase its revenue profile.

Declining global oil prices have forced many state governments to begin the process of boosting their IGRs in a bid to achieve their development goals.

The Senior Special Assistant (Communications) to Governor Okezie Ikpeazu, Mr. Sam Hart, told journalists in Lagos that the state was working to increase its IGR from N400m currently to about N1.5bn monthly within the new government’s first year in office.

This is expected to lead to an annual IGR of N18bn.

Hart said, “We are harmonising our tax system so there is no more multiple taxations. We are targeting N1.5bn monthly within the first one year. Currently, we are on N400m monthly. And we would realise this by minimal introduction of taxes.

“Already, the bulk of the taxes that are paid go into private pockets. So we want to block all these leakages. If we are able to block these leakages, you would be shocked what we would be able to realise.

“This is why we have engaged private consultants. There is a threshold. We would give them a target before they can take their percentage.”

The SSA said the government had already saved N160m from eliminating ghost workers in the state’s labour force.

While expressing hope that it would save up to N300m in one year through the biometric validation of the staff of ministries, departments and agencies, Hart expressed confidence that the administration’s efforts to plug revenue leakages would produce significant results.

He added, “We cannot continue to use 80 per cent of our revenue to service workers, who accounts 5.5 per cent of our population. We want capital expenditure to be more than recurrent. The governor himself has slashed his salary and the aides are all sacrificing to get this system to work.”

According to Hart, the government is giving serious attention to commerce the plan to re-establish the state as a commercial hub.

He said due to the collapse of infrastructure and bad roads, major investments meant to be sited in the state had been diverted to other states.

However, he said efforts and plans were already at an advanced stage to make the state an investors’ haven.

He stated that a board that would ensure that made-in-Aba goods met global standards would be unveiled very soon.

The SSA said, “We would establish and enforce global quality standards in our industries. Another bill that is at the House of Assembly is the Abia State Standards Board. We want to make sure people can be proud to buy made-in-Aba products.”

“When our standards board is established, it means that whatever is coming out bearing the brand made-in-Aba meets a minimum acceptable standard according to global best practices. No more haphazard things. When we have this quality board, it would ensure that things are done properly. For example, why should the NYSC import their boots when it can be made in Aba?

He further said, “We want to be Nigeria’s second strongest economy behind Lagos State; to have a vibrant agricultural and agro-allied processing sector. Aba is an industrial centre that can be easily compared to Lagos. We plan to have at least five modern global standard markets serving West and Central Africa and a strong hub for Nigerian content activities for the oil and gas sector.”

 

[Punch]