Ekiti State has recorded an annual Internally Generated Revenue (IGR) of over ₦50 billion, a development that has enabled the government to meet its monthly salary obligations to civil servants.
The state government provided these details during its 30th-anniversary commemorations, marking a milestone in its fiscal management. The ability to fund the public sector wage bill through internal means is seen as a move towards greater financial autonomy for the state.
This capacity for self-sustenance is intended to reduce the state’s reliance on the Federation Account Allocation Committee (FAAC), which distributes oil-derived revenues from the federal government to the states. For many Nigerian sub-nationals, the volatility of federal allocations often leads to delayed salaries and stalled projects, making Ekiti’s reported progress a notable shift in sub-national governance.
In addition to revenue growth, the administration reported a successful trend in economic diversification. Official data shows that the state’s dependence on the agricultural sector has decreased substantially over the last two decades. This information was part of the anniversary celebrations highlighting the state’s economic trajectory.
In 2005, agriculture accounted for approximately 80 per cent of the state’s economic output. By 2017, this figure had declined to 40 per cent, as the state expanded its involvement in other economic activities.
Economic restructuring and revenue growth
The shift away from a heavy reliance on farming reflects a strategy to broaden the state’s economic base. While agriculture remains a vital component of the local economy, the growth in sectors such as commerce, services, and small-scale industries has provided a more varied revenue stream.
The government indicated that this diversification is a strategic measure to protect the state from economic shocks, such as fluctuations in national oil revenues or volatility in global commodity prices. By developing multiple revenue streams, the state aims to ensure more predictable funding for public services and infrastructure.
The ₦50 billion annual IGR is being utilised to fund various developmental projects across the state. The government has stated that maintaining this growth requires continued investment in revenue collection technology to minimise leakages and improve compliance rates among taxpayers.
Moving forward, the administration is expected to focus on further digitising tax and levy collection processes to sustain the current revenue trajectory and ensure long-term fiscal stability.
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