PAYE FACTOR IN INTERNALLY GENERATED REVENUE IN NIGERIA

Change the minimum wage today or adjust income tax rate, most state Governors in Nigeria will groan or smile more broadly.

This is because, for most of them, the main source of internally generated revenue (IGR) remains pay as you earn (PAYE).

According to figures for IGR by states in the first half of 2016 released by the National Bureau of Statistics (NBS), one major exception to this rule was Ogun state 

Within the period, Ogun state generated N28.15bn in IGR to place 2nd way behind Lagos state but 60.5% of this was from Ministries, Departments and Age cies (MDAs) while only 30.3% was from PAYE.

The leading state, Lagos, with N150.59bn IGR 2016 first half, N97.33bn or 64.6% was from PAYE and only 13.2% from MDAs.

That did not detract from the fact though, that Lagos state PAYE earnings within the period was higher than the total IGR by any of the other 36 states and that its N19.86bn from MDAs was also higher than IGR of other states except Ogun and Delta states.

Delta itself was one of the states likely to be affected by anything that affects PAYE. Placed third state by state, its N22.45bn IGR by 2016 half year was 87.4% dependent on PAYE.

Indeed, of the top 10 by IGR within the period, Delta had the highest dependence on PAYE followed by Akwa Ibom ranked 6th with N8.3bn IGR 76.9% dependent on PAYE.

Of this elite group, the least dependent on PAYE was Kwara placed 7th with N8.23bn IGR by half year, and only 26.1% was from PAYE while 63.3% was from MDAs revenue.

It was followed by Ogun state, then 9th placedCross River (31.9% of half year N6.77bn IGR); 4th placed Kano with 37.1% of its period N17.23bn IGR was from PAYE and 10th placed Enugu with 46.9% of period N6.34bn IGR coming from PAYE.

At the bottom of the state by state ranking by 2016 half year IGR that PAYE dependence dominates.

Within the period, according to NBS, the state with the lowest IGR (N1.07bn) was Nasarawa and this was 89.7% from PAYE.

On the other hand, 6th from the bottom by IGR, Gombe generated 88.2% of its N1.78bn from PAYE slightly higher percentage than tenth and third from the bottom Imo and Borno that generated their N2.71bn and N1.26bn IGR 81.2% and 81% respectively from PAYE.

Only Yobe, 7th placed from the bottom, Ekiti 2nd placed and Taraba 8th from bottom depended less than 50% on PAYE.

Fourth placed from bottom, Kebbi with N1.57bn period IGR was 59.2% dependent; 5th placed from rear Jigawa generated 58.1% of its N1.67bn from PAYE and 9th placed Zamfara generated 52.9% of its period N2.1bn IGR from PAYE too.

According to the NBS, by the time the report was compiled, six states, Abia, Bauchi, Ebonyi, Oyo, Rivers and Sokoto were yet to send their figures.

Covered in the report were IGR from road taxes, PAYE, direct assessment and MDAs earned revenue.

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