A report from Fiscal Responsibility Commission has shown that the consolidated debts of Nigeria’s 32 states exceeded their gross statutory revenues by 53.31 percent in 2017. All the states in the country except Anambra, Katsina, Sokoto and Yobe had debts to statutory revenues exceeding 100 percent. As of December 2017, according to the report, the 36 states had total public debts of ₦4.5 trillion while they had gross statutory revenues totaling ₦2.098 trillion and net revenues ₦1.74 trillion. Collectively, the debts of the 36 state governments exceeded their statutory revenues for the whole year by ₦2.4 trillion or by 53.31 per cent, which means the states spent a total of ₦359.32 billion or 17.12 per cent of their statutory revenues to service their debts within the one year period. Among the states, Osun had the highest debt burden going by its debt-to-gross revenue ratio. The state had a debt to gross revenue ratio of 425.6 per cent, enjoying a debt-to-net revenue ratio of 1,607.79 per cent. The state had a total public debt of ₦167.8 billion while its gross statutory revenue amounted to ₦39.43 billion with net statutory revenue of ₦10.44 billion. Lagos had a public debt of ₦811.94 billion; gross statutory revenue of ₦123.42 billion and net revenue of ₦89.69 billion while Cross River among others had a public debt of ₦177.033 billion; a gross statutory revenue of ₦41.96 billion and a net statutory revenue of ₦23.45 billion.
The NBS’s Sectoral distribution of VAT data for Q4 2018 has shown that Nigeria’s manufacturing sector contributed about ₦864 billion of the ₦3.63 trillion generated as VAT between 2013 to 2018. The contribution from the sector represented 24 percent of the total VAT generated within the six-year period. A breakdown of the ₦3.63 trillion showed that N481.5 billion was generated in 2013, ₦493.9 billion in 2014, while ₦759.4 billion and ₦777.51 billion were generated in 2015 and 2016 respectively. The report also shows that ₦972.35 billion and ₦1.10 trillion was generated as VAT in 2017 and 2018 respectively, with the amount generated in 2018 VAT being the highest in the six-year period. The automobiles and assemblies segment of the sector contributed ₦8.7 billion, breweries, bottling and beverages added ₦192.03 billion, while chemicals, paints and allied industries accounted for ₦6.99 billion for the VAT in the six-year period. Others include manufacturing, ₦597.01 billion, petrochemical and petroleum refineries, ₦37,013,858,414.6, and pharmaceutical, soaps and toiletries providing ₦7.13 billion to VAT. Similarly, Publishing, printing, paper packaging contributed ₦9,7 billion, while textile and garment industry added ₦5.5 billion to the VAT in the six-year period.
A report by the Nigeria Extractive Industries Transparency Initiative titled, “Averting Illicit Financial Flows in Nigeria’s Extractive Industry,” has said that Nigeria’s oil and gas sector is responsible for 92.9 percent of illicit financial flows with over $217.7 billion said to have flowed out of the country between 1970 and 2008. The report showed that oil bunkering accounted for about 35 percent, while commercial transactions in the form of tax evasion, money laundering and transfer pricing by multinationals that dominate the sector account for more than 60 percent of illicit financial flows from the country. According to the executive director of NEITI, Waziri Adio, the report, which focused on a 38-year period, showed that on average, the country lost about $5 billion per year.
Nigeria’s manufacturing sector expanded for the 23rd consecutive month as the PMI inched up to 57.1 points in February 2019. The CBN’s PMI survey report said the index grew at a slower rate when compared with the previous month, while the production level index grew at 57.5 points for the 24th consecutive month. The employment level index stood at 56.3 points, indicating growth for 22nd consecutive month as 13 of the 14 sub-sectors surveyed reported growth during the month. Among the sub-sectors, nine recorded increased production level, three remained unchanged while two recorded decline. Nine out of the 14 manufacturing subsectors increased at the production level, three remained unchanged while two recorded decline. Similarly, the employment level index for the month under review stood at 56.3 points, indicating growth in employment level for the 24th consecutive month. Of the 14 subsectors, eight reported increased employment level, 5 reported unchanged while one reported decreased employment in the reviewed month. According to the CBN report, the composite PMI for the non-manufacturing sector stood at 58.4 points in February 2019, indicating expansion in the non-manufacturing PMI for the 22nd consecutive month.