Connect with us

Business

7 Northern States Declared Bankrupt In Nigeria

7 Northern States

7 Northern states, one oil-producing state declared bankrupt in Nigeria

7 Northern states and one Southern state have been declared bankrupt based on their internally generated revenue in comparison with their Federal Accounts Allocation (FAA).

Jigawa, Katsina, Adamawa, Yobe, Niger, Taraba and Benue were tagged insolvent states alongside oil-producing Bayelsa State by the Annual State Viability Index (ASVI) of Economic Confidential.

The status of the states were determined by percentage arrived at when their IGR and FAA was compared, and states with IGR of less than 10 percent of their federal allocation are classified insolvent.

Bayelsa topped the list of the poorest states in Nigeria as it received a total of N152.54 billion as FAA in 2020, but generated only N12.18 billion as IGR – this represents 8.0 percent of earnings from FAA.

Jigawa State came next with IGR of N8.6 billion in contrast to the N107 billion it received as allocation during the same period – this represented 8.1 percent of total earning.

Katsina recorded 8.8 percent after generating N11.3 billion against the N130 billion federal allocation.

Adamawa received N91 billion of FAA, but could only generate N8.3 billion IGR, putting the differences at 9.1 percent.

Yobe state recorded N7.7 billion IGR, but got N84 billion federal allocation – this represented 9.2 percent in total receipt.

Niger State was next with 9.6 percent as its internally generated revenue was put at N10.5 billion compared to N109 billion of FAA.

Taraba generated N8.1 billion as IGR, but was given N82 billion from federal allocation, putting its difference in earnings at 9.8 percent.

Benue completed the list with IGR of N10.46 billion, far below the N106 billion it received as FAA, representing 9.8 percent last year.

Best performing states in Nigeria

Lagos state topped the list of best performing states in Nigeria as its IGR, N418 billion, surpassed its N299 billion federal allocation, putting its earnings difference at 139 percent in 2020.

Rivers State came next with N117 billion to comparison to the N198 billion secured from the FAA – this represents 58 percent difference.

Ogun State finished last year with N50 billion as internally generated revenue, falling below the N88 billion FAA it received, but its revenue difference stood at 57 percent.

Kaduna State is fourth on the list, obtaining N124 billion federal allocation, while generating N50 billion IGR, representing 40 percent difference.

Oyo made the list with 29.7 percent difference having generated N38 billion in IGR, but received federal allocation to the tune of N127 billion.

Anambra State’s internally generated revenue was put at N28 billion, but it got N94 billion as federal allocation, representing 29.6 percent in earnings.

More problem for the seven insolvent states

The seven states are believed can’t survive without federal allocation, which is set to drop following a Rivers State court ruling that the Federal Government is not authorised by the constitution to demand and collect non-import value added taxes.

Justice Stephen Pam, who presided over the ruling stated that the Concurrent Legislative List of the constitution empowered only states and its agent(s) to collect non-import vat within their region.

This will reduce the tax revenue shared by FG to states by N1.64 trillion if the ruling stands, and it will reduce the total allocation of low-income generating states like Bayelsa, Katsina, Adamawa, Yobe, Niger, Taraba, Benue, Kano and others.

Business

MTN under attack as hackers breach network

MTN Nigeria on Friday, April 25, confirmed that it was recently targeted in a cyber attack but has moved to calm concerns, assuring customers, partners, and stakeholders that its key systems and customer data were not compromised.

The telecoms giant in a statement released on Thursday, April 24, revealed that it had detected unauthorized activity within its network, and had acted swiftly to isolate and neutralize the threat.

The Chief Executive Officer of MTN Nigeria, Karl Toriola disclosed that the attackers had sough to disrupt operation, but their attempts were unsuccessful.

He emphasized that the incident did not affect Nigeria specifically, and critical infrastructure, including customer information and core business functions, remained secure.

“We take cybersecurity very seriously and have robust systems in place to detect, isolate, and neutralize threats. Although this attack attempted to breach our defenses, our security protocols worked as intended, and our core infrastructure remains secure,” Toriola stated.

The telecom giants did not however reveal the nature or origin of the cyberattack on its systems, cybersecurity analysts warn that telecom companies across Africa are becoming prime targets for cybercriminals. This growing threat is linked to the sector’s vast subscriber base and the continent’s rapidly expanding digital economy.

An internal source within MTN confirmed that the breach did not affect operations in Nigeria, reinforcing the company’s earlier statement that local infrastructure and services remain intact.

The attack comes at a time when Nigeria is accelerating its digital transformation agenda, an ambitious effort that places increased responsibility on service providers to strengthen their cybersecurity protocols.

MTN has pledged to work closely with cybersecurity experts and government authorities to conduct a thorough investigation of the incident. The company also affirmed its commitment to bolstering its systems and defenses to prevent future breaches and safeguard customer trust.

Continue Reading

Business

Air Peace to resume flight operations nationwide

Lagos to Abuja now costs N100,000 as operators list challenges

Air Peace has said that it will resume flight operations on Friday following suspension of strike by the Nigerian Meteorological Agency (NiMET) workers.

The airline’s Head of Corporate Communications, Dr Ejike Ndiulo, made the disclosure in a statement on Thursday night in Lagos.

According to Ndiulo, Air Peace is grateful to its customers and the general public for patience, understanding and support throughout the period of the strike.

”Your resilience and trust in our brand mean the world to us

“We commend the active and decisive intervention of the Minister of Aviation and Aerospace Development, Mr Festus Keyamo (SAN), whose leadership and commitment were pivotal in resolving the impasse and restoring normalcy within the aviation industry,” Ndiulo said.

He noted the minister’s swift engagement with aviation stakeholders, his transparent approach and his dedication to the stability and progress of the aviation sector.

According to him, Keyamo’s efforts not only facilitated timely resolution of the industrial dispute but also underscored his broader vision for a safer, more efficient and investor-friendly Nigerian aviation industry.

Ndiulo reaffirmed Air Peace’s commitment to providing safe, reliable and world-class services.

NAN reports that NIMET workers on Thursday shelved the strike which began on April 22 following Keyamo’s intervention.

The workers downed tools in protest of alleged poor working conditions, including non-implementation of the 2019 Consequential Adjustment to the National Minimum Wage (affecting at least 30 staff).

They are also demanding a 25/35 per cent salary increase, 40 per cent hardship/peculiar allowance, and annual staff trainings.

Keyamo had promised to find lasting solutions to the problems.

Continue Reading

Business

BREAKING: Air Peace suspends flight operations nationwide

Lagos to Abuja now costs N100,000 as operators list challenges

Air Peace Ltd. has announced the suspension of all flight operations nationwide due to the ongoing strike embarked upon by the Nigerian Meteorological Agency (NiMET).

This is contained in a statement signed by the Head of Corporate Communications, Air Peace, Dr Ejike Ndiulo, on Wednesday in Lagos.

According to Ndiulo, the decision is necessary because NiMet is the agency responsible for issuing CNH (Current Nowcast of Hazardous Weather) reports, critical for safe landings, especially during this season of heavy rainfall and thunderstorms.

He said without these reports from the control tower, flight safety could not be guaranteed.

“As a safety-first airline, we have chosen to act responsibly by suspending operations until NiMet resumes full service.

“We understand this may cause inconvenience, and we sincerely apologise. Passengers will be contacted with updates and options for rescheduling,” he said.

The staff of NiMET on Tuesday commenced an indefinite strike over the condition of service and other demands.

Continue Reading
Advertisement

Trending