FIGURES from the National Bureau of Statistics, NBS, show that for 2012, the Internally Generated Revenue, IGR, for the 36 states of Nigeria was about N555 billion, out of which the 19 states of the  North generated  N87 billion or 15 %; the South West generated N261.2 billion or 47%; the South-South accounted for N150 billion or 27% and the South East N45 billion or 8%. In other words, the South generated N 468 or 85 % of the total IGR for 2012.

Eight states, namely Anambra, Bauchi, Bayelsa, Ebonyi,  Jigawa,  Kano, Kwara, and Sokoto, had no figures for 2012, while Abia State remained blank from 2010.This anomaly may perhaps be for political reasons or for sheer incompetence of the officers in-charge in these states. Whatever their reasons, their governors should be concerned because it speaks volumes about them. There is no reason, for example, why Abia State should not submit their annual IGR figures as the Chairman of the South East Governors.

However, the best six performing states in the South did N377 billion or 68%, while the best six states in the North did N46 billion or 8%. These figures are of great importance, as they bring  some home truths to us. They question the ostentatious life styles of many governors who ride about in Hummer SUV cars, going for yatch cruising holidays overseas, frittering away the money they collected from the Federal purse. Such governors should emulate the Governors of Lagos State(who generated N219.2 billion IGR) and Rivers State(with N66.2 billion IGR).

Northern Nigeria’s poor showing remains a concern. Eight of the least ten states in terms of IGR are from Northern Nigeria, including Yobe and Borno which are bearing the brunt of the current insurgency. States in the South continue to show dominance in terms of economic activity, but the low IGR of the South East calls for concern too, and the need for that region to evolve strategies for economic growth and revenue base enlargement. They have spread themselves too thin all over the country, making huge contributions to the IGR of their host states even when those states are hostile to them; they need a rethink.

The South-South oil producing states have good IGR showing, perhaps due to the increased economic activity that oil and gas provides. Five of the top ten states with the highest IGR are oil producing, including Rivers, Delta, Edo, Akwa Ibom and Cross River.

States without oil also have vast agricultural capacities that should be expanded, while the Northern states with solid minerals should do something to help their peoples. Some states have abundant resources but are too lazy to harness the resources for their own good. They only wait for the Federal Allocations at the end of every month to disburse it to their families and cronies, yet rail against the Federal Government at every opportunity.

Lagos State leads with an IGR of N219,2 billion or 39% , being our commercial capital where all visitors feel free to do business, unlike many states. Those states that antagonise visitors based on religion and ethnicity should learn from the accommodating attitude of Lagosians.

In fact, most states cannot survive without the Federal allocation, and rather than launch into programmes that will expand their revenue base, they force the people to bear the brunt of their wasteful lifestyles through all forms of taxations.

The performance of the oil producing states tend to put other governors under pressure, causing them to resort to all sorts of devices to boost their IGR, leading to the subjection of  their people to multiple taxation. In such states, they interpret their laws to allow for multiple taxation of businesses.

They equip civil servants with buses and motorcycles to hound business premises with demand notices for all kinds of rates and taxes. Their Ministry of Land and Town Planning will go for property and tenement rates, Ministry of Commerce and Industry for business premises rates,Ministry for Technology will ask for new business premises taxes targeting filling stations and such businesses, while the state’s Revenue Service still hunt for income taxes and other taxes from businesses, as the local government council chase for their own taxes.

The result is that in such states, a business premises receives and entertains about six to seven demand notices for taxes from the state government offices annually!

These governors often equip thugs with uniforms, provide them with motorcycles and give them revenue targets on monitoring and seizing broken down vehicles, collecting fines for wrong parking, wrong lane driving and all sorts of unimaginable traffic offences along their often potholes-filled roads.

When you are caught, the fines are usually very heavy, from N35,000 for cars to N90, 000 for trucks, but you can negotiate and sort them out with a little amount before they drag you to their wretched officers in their office.

The implications for these multiple taxation on businesses in some states are heavy and further impoverish the people. New business startups are very slow and few, because of such impediments.

If nothing is done, multiple taxation will endanger, if not kill, the laudable new initiative of the Central Bank of Nigeria to empower and fund  SMEs in the states of the Federation. With elections around the corner governors are grinning from ear to ear in anticipation of the money to be released by CBN which they may siphon away using the instrumentality of multiple taxation. New businesses should be exempted from states and federal taxes for the usual initial period of three years, and the National Assembly should harmonise all the state tax laws to eliminate multiple taxations.

If the 54 states structure recommended by the CONFAB 2014, is accepted and implemented, many of these states will not function without Federal Allocation. From what we see today, bad times still await the people as many states are not focusing on revenue creation base among the citizens before taxation.

Clement Udegbe, a legal practitioner, wrote from Lagos.