LAGOS, (CAJ News) – A Nigeria financial institution is confident the country’s economy is course of revival following states heeding the federal government’s encouragement to diversify their economies.
This would in turn grow their internally generated revenue (IGR).
The call by the FG follows the waning oil industry, at its peak a lucrative industry for the country’s cash generation.
First Bank of Nigeria (FBN) noted Finance Minister, Kemi Adeosun, and Federal Inland Revenue Service (FIRS), Chairman, Tunde Fowler had insisted that non-oil revenue collection was on an upward trajectory.
“If this proves the case, a corner of sorts would be turned in that arrears would no longer accumulate,” FBN stated.
“However, this should not absolve the states from their pursuit of development and increased IGR.”
The FG has made available some programmes of debt and fiscal relief for state governments since July 2015.
It was driven by the sharp fall in distributions by the Federation Account Allocation Committee (FAAC) as a direct result of the slide in the oil price since mid-2014.
Most states had accumulated arrears in salary and pension payments as well as in their dues to suppliers and contractors.
– CAJ News