Kaduna State leads other northwest states in implementing the 2022 budget. The state’s budget implementation report (BIR) shows that it spent N117.86 billion of its estimated pro rata budget of N139.81 billion for the first two quarters (Q2) of 2022. This shows an 84.3% performance implementation, the highest in the region.
With a 62.13% performance, Kano State spent N103.09 billion of its N165.93 billion by the end of the third quarter.
Jigawa, Kebbi, and Katsina states had 59.94%, 48.89%, and 48.25% budget implementation performance, respectively, by the end of the third quarter. Jigawa State spent N89.05 billion of N148.56 billion, Kebbi State spent N69.38 billion of N141.93 billion, while Katsina State spent N117 billion of N242.47 billion.
Implementing 62.2%, Sokoto State places second as it spent N58.6 billion of its N94.21 billion budget by the end of Q2. Zamfara State spent N41.06 billion of its N79.74 billion by the end of Q2, giving it a 51.49% performance.
North-West’s Regional Budget Appropriation
Seven states BIR reviewed showed that Jigawa, Kano, Katsina, and Kebbi states had the report by the end of Q3 2022. These states had a cumulative budget of N689.88 billion for the first three quarters. The states spent N378.53 billion, representing 54.16% by the end of the period,
Kaduna, Sokoto, and Zamfara states had BIR reports as at the end of Q2, they spent N217.52 billion of N313.77 billion by the end of the period. This gives the states a 69.33% performance.
The states in the region had a revenue projection of N892.78 billion. This gives a collective deficit of N666.61 billion.
Jigawa, Kano, Katsina, and Kebbi states revenue generation analysis shows that they collectively generated N320.08 billion of the N417.02 pro rata Q3 revenue projection. This shows a 76.76% revenue generation performance for the states.
Kaduna, Sokoto, and Zamfara states generated 87.37% of their collective pro rata Q2 revenue projections. The states generated N147.11 billion out of the projected N168.38 billion.
Federation Account Revenue vs. Internal Generated Revenue (IGR)
Jigawa, Kano, Katsina, and Kebbi states budgeted to generate N417.01 billion by the end of the third quarter. Analysis shows that N290.86 billion is expected to be received from the federation account revenue and N126.16 generated internally. This shows that 69.75% of the collective revenue is expected from the federation account.
Kaduna, Sokoto, and Zamfara states expect to receive 65.38% of their N168.38 billion from the federation account revenue by the end of Q2. the states projected N110.08 billion to come from the federation account revenue and N58.29 to be generated internally.
The states’ dependence on revenue from the federation account varies. While Kano State was approved to receive the highest from the federation account revenue, the least was approved by Zamfara State.
Kano State budgeted N91.18 billion as its federally collected revenue and N28.61 billion as IGR. It was N29.7 billion and N10.08 billion, respectively, in Zamfara State.
The revenue composition of the states in the northwest region by the end of the third quarter shows a 54.98% to 45.02% federation account revenue to IGR in Jigawa State. In Kaduna State, it was 54.12% to 45.88%, and 76.11% to 23.89% in Kano State.
Those of the other states are 68.31% to 31.69% for Katsina State, 84.03% to 15.97% in Kebbi State, 74.98% to 25.02% for Sokoto State, and 74.65% to 25.35% in Zamfara.
By the end of the third quarter, Jigawa, Kano, Katsina, and Kebbi states generated N320.09 billion, of which only N77.28 billion was generated internally. IGR accounted for 24.14% of the revenue generated.
Kaduna, Sokoto, and Zamfara states generated N147.11 billion by the end of Q2 2022. Of this amount, Only N42.52 billion, 28.9%, was generated internally, the rest was received from the federation account revenue.
The amount actually generated as internal revenue varied across the states. Only Jigawa State was able to generate almost what it approved to generate as IGR. the state IGR, as budgeted for the first three quarters, shows it will account for 45.02% of the total revenue. After the period, IGR accounted for 42% of the total revenue.
Comparing the proportions of IGR budgeted to that generated by the states at the end of the period showed that Kaduna State approved to generate 45.88% internally and 38% of its revenue internally.
Kano State’s proportion as generated is approximately equal to that budget. It approved a proportion of 23.89% and generated a proportion of 24% as IGR.
The proportion of IGR budgeted and generated in Katsina State is 31.69% and 12%, and in Kebbi State, it was 15.97% and 13%. The remaining states are 25.02% and 24% in Sokoto State and 25.35% and 20% in Zamfara State.
Recurrent revenue took a greater proportion of what was generated by the states in the region.
Recurrent vs. Capital
The recurrent expenditure to capital expenditure budgeted composition varies across the states. Dataphyte’s analysis shows that it was 44% to 56% in Jigawa State and 34% to 66% in Kaduna State,
This composition for the first three quarters of 2022 was 45% to 55% in Kano State, 31% to 69% in Katsina State, 35% to 65% in Kebbi State, 41% to 59% in Sokoto State, and 46% to 54% in Zamfara State.
However, by the end of Q3 2022, the region has spent just N596.05 billion, 58.86% of its approved expenditure. The performance of capital expenditure contributed to the poor performance of the region’s expenditure.
While the states in the region spent almost all their approved recurrent revenue, N360.47 billion against N386.63 billion representing 93.23%, it only spent 37.63% of its capital expenditure (N235.58 billion of N626.02 billion).
Thus, the proportion composition of 38.18% to 60.48% recurrent to capital expenditure budgeted changed from 61.82% to 39.52% recurrent to capital expenditure implemented.
The performance composition varies across the states. After the third quarter implementation, Jigawa State had a recurrent to capital expenditure composition of 52% to 38%. It was 36% to 64% in Kaduna State and 84% to 16% in Kano State.
Other states’ performance shows that Katsina State had a recurrent capital expenditure composition of 50% to 50%. In Kebbi State, it is 59% to 41%, 71% to 29% in Sokoto State, and 86% to 14% in Zamfara State.