The Price of crude oil has taken a big hit (fall in prices) , federally allocated revenue from the sale of crude oil to all states within Nigeria have been affected (declining revenues). This current trend has affected the fiscal policies of many states , with a lot of states having challenges in meeting up with their obligations. The internally generated revenues (IGR) constitutes other source of incomes to the states apart from the federally allocated revenue from the sales of crude oil.
States would now have to rely more on increasing internally generated revenue by ensuring everyone pays his or her own fair share of taxes. State that can effectively and efficiently increase their Internally generated revenues would find fiscal policy implementation less of a headache than those would can`t.
The visualisation below shows the IGR for 36 states within the federation the size of the bubble is an indication of the amount Internally generated revenue for the 2014 year.
Concluding remarks it is hope that public policy makers would take concrete steps at improving their IGR to avoid fiscal policy crisis.