IGRs to replace FAAC as main revenue source for States – JPB

By Sola Oni in Abuja

The Joint Planning Board (JPB) has projected that between 2021 and 2025, Internally Generated Revenues (IGRs) should replace the Federation Accounts Allocation Committee (FAAC) as the main source of revenue for States, while the status quo remains for Local Government Areas in the medium term.

In a communique at the end of a three-day meetings in Abuja, the JPB delegates  advised the States to take advantage of available resources and other natural endowments to diversify their IGRs and grow their economy.

In the communique which was read by the Permanent Secretary, Budget and National Planning Ministry, Mrs Olusola Idowu, the JPB
also enjoined the Government to continue to create a sound macroeconomic environment to stimulate growth and development of the economy.

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“Government at all levels should continue to enhance revenue mobilisation, tax collection and improve expenditure efficiency; States should be encouraged to implement counter cyclical fiscal policy. Every successive government should continue to with the implementation of development plans of its predecessor,” the communique said.

The JPB stated that it was important to include Conditional Grants as an innovative financing mechanism “where Federal Government will use the Grants to leverage States resources towards achieving the objectives of the Medium-Term National Development Plan.”

The communique urged the Federal Ministry of Finance, Budget and National Planning to ensure that States align their Plans with the National Plans to achieve national development aspirations and also ensured that all key recommendations of the JPB /NCDP meetings are forwarded to the Nigeria Governors’ Forum as a precursor to ease implementation of key resolutions of the meetings.

It then noted that “inadequate capacity at the sub-national levels was identified as hindrance to their inability in making  credible inputs into the National Development Plan, hence, the need to build the capacity of States in the areas of Plans formulation, implementation and M&E”.

While urging every successive government to continue with the implementation of development plans of its predecessor, the JPB called on the National Assembly to come up with a legislation that would stop successive governments from abandoning projects initiated by their predecessors.

The 20th edition of the JPB/NCDP meeting is expected to be held in Maiduguri, Borno state, which would have hosted the just concluded 19th edition last year, but for the outbreak of the coronavirus pandemic.