Yobe State, situated in the North-East geopolitical zone of Nigeria, has over the years been recognized as one of the key beneficiaries of the country's federation revenue allocations. As an agrarian state with vast potential in agriculture, livestock, and solid minerals, Yobe is increasingly leveraging both federal allocations and internally generated revenues (IGR) to drive its developmental agenda.
The state's financial inflows, especially from the Federation Account Allocation Committee (FAAC), play a crucial role in the socio-economic transformation of the state, particularly as it continues to rebuild from the effects of insurgency and security challenges that have hindered its economic progress over the past decade.
In this comprehensive post, we delve deep into Yobe State's revenue sources, its FAAC allocations, the internally generated revenue performance, the 2024 budget outlook, as well as the critical development strides powered by these funds.
Understanding FAAC Allocations to Yobe State
The Federation Account Allocation Committee (FAAC) is the body that oversees the monthly disbursement of revenues accrued into the Federation Account among the three tiers of government: federal, states, and local governments. These revenues are generated from various sources including oil exports, taxes, customs duties, and other federally collected funds.
Yobe State, being a non-oil producing state, relies largely on its share from the statutory allocations, Value Added Tax (VAT), and other components like Exchange Gains, Excess Crude Account (ECA) releases, and miscellaneous revenues.
According to official data from the National Bureau of Statistics (NBS) and FAAC reports, Yobe State received a cumulative FAAC allocation of ₦120.31 billion in 2023, placing it among the top 20 states with significant receipts, although still trailing behind oil-producing states and economic hubs like Lagos and Rivers.
Breakdown of Yobe State FAAC Allocations:
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Statutory Allocation: ₦78.12 billion
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Value Added Tax (VAT): ₦38.95 billion
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Exchange Gain & Other Revenues: ₦3.24 billion
These funds are channeled into the state treasury, from where they are appropriated towards recurrent and capital expenditure, covering salaries, pensions, infrastructure, health, education, and other social services.
Yobe State’s Internally Generated Revenue (IGR) Performance
Despite its dependence on FAAC, Yobe State has been making notable efforts to boost its IGR. As of 2023, Yobe State’s IGR stood at ₦8.32 billion, representing a marginal improvement over previous years.
The state government, through the Yobe State Internal Revenue Service (YSIRS), has embarked on several reforms aimed at:
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Improving tax compliance through public awareness campaigns.
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Digitizing revenue collection platforms to reduce leakages and increase transparency.
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Expanding the tax net by bringing more informal sector players into the tax system.
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Enforcing property tax collections, business licenses, and levies.
Key Components of Yobe State’s IGR:
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PAYE (Pay-As-You-Earn): Largest contributor to the state’s IGR.
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Road taxes, licenses, and permits.
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Revenue from ministries, departments, and agencies (MDAs).
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Levies on markets and motor parks.
While the IGR figures remain modest compared to some of the larger Nigerian states, the progress in Yobe indicates a strategic direction toward fiscal sustainability.
Yobe State’s 2024 Budget: Key Priorities and Focus Areas
In December 2023, Governor Mai Mala Buni presented the 2024 budget estimates totaling ₦240 billion, titled “Budget of Consolidation and Economic Transformation.” The budget is a blend of recovery, consolidation, and transformation as the state continues to invest in infrastructure and human capital, while also prioritizing security and social welfare programs.
Breakdown of the 2024 Budget:
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Capital Expenditure: ₦150 billion (62.5%)
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Recurrent Expenditure: ₦90 billion (37.5%)
This allocation reflects the administration’s commitment to directing a large chunk of the budget toward developmental projects, infrastructure rebuilding, and revitalizing sectors affected by insurgency.
Sectoral Allocation in the 2024 Budget
1. Infrastructure Development
A whopping ₦70 billion was earmarked for roads, housing, urban renewal, and water supply projects. Major projects include:
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The continuation of the Damaturu Township road expansion.
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Construction of rural feeder roads to link farmlands and markets.
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Provision of potable water systems across rural communities.
2. Education
Education receives ₦30 billion, reflecting Yobe’s commitment to rebuilding and upgrading schools destroyed by insurgents, while enhancing teacher welfare and investing in technical and vocational education.
3. Healthcare
Yobe State allocated ₦25 billion to the health sector in 2024, focusing on:
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Equipping general hospitals.
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Constructing primary healthcare centers in rural areas.
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Expanding the Yobe State Contributory Healthcare Scheme.
4. Agriculture and Livestock
Recognizing the state’s agricultural potential, ₦15 billion was budgeted to support:
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Agricultural mechanization.
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Livestock production and disease control.
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Extension services and farmer empowerment programs.
5. Youth and Women Empowerment
To address unemployment and poverty, ₦10 billion was reserved for skill acquisition programs, micro-credit schemes, and women empowerment initiatives.
6. Security
Given Yobe’s security challenges, ₦8 billion was allocated to enhance security infrastructure, logistics support for security agencies, and community policing.
Impact of State Allocations on Development in Yobe
Despite its relatively low IGR, Yobe State has demonstrated prudent management of its FAAC and IGR receipts to drive sustainable development. Some key achievements include:
Infrastructure Improvements
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Improved road networks connecting Damaturu to key local government areas.
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Massive investments in township roads and drainages.
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Electrification of rural communities and solar energy deployment.
Educational Recovery
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Rehabilitation of over 500 schools affected by insurgency.
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Provision of educational materials and recruitment of qualified teachers.
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Scholarships for indigenes in tertiary institutions.
Healthcare Delivery
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Construction of specialist hospitals and rural health centers.
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Distribution of ambulances and healthcare consumables.
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Implementation of free maternal and child healthcare programs.
Agricultural Boost
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Distribution of tractors and farming implements.
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Establishment of livestock grazing reserves.
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Partnerships with development agencies to boost irrigation farming.
Social Empowerment Programs
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Support for widows and orphans through social welfare schemes.
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Entrepreneurship support programs for youths and women.
Challenges Facing Yobe State’s Fiscal Space
Yobe State, like many states in Nigeria’s North-East, grapples with numerous challenges that hamper its revenue drive and development efforts, including:
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Insecurity: Persistent security threats disrupt farming, trade, and business activities.
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Low Revenue Base: Overdependence on FAAC and low IGR limit fiscal flexibility.
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Infrastructural Deficit: Years of underinvestment and destruction by insurgents created a huge infrastructure gap.
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Environmental Challenges: Desertification and climate change affect agriculture and livelihoods.
Outlook and Recommendations
To improve its fiscal resilience and accelerate development, Yobe State must:
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Deepen its tax reform agenda and broaden the tax net.
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Intensify efforts at economic diversification, especially in agriculture, solid minerals, and renewable energy.
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Leverage Public-Private Partnerships (PPP) to attract investments in infrastructure, education, and healthcare.
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Enhance transparency and accountability in public finance management to optimize resource utilization.
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Collaborate with development partners and the private sector to fund large-scale development projects.
Conclusion
Yobe State’s journey toward recovery, resilience, and growth is significantly anchored on its state allocations from FAAC and modest IGR contributions. While these revenues have supported substantial progress in infrastructure, education, healthcare, and social empowerment, the path ahead requires a deliberate strategy toward economic diversification and increased internal revenue mobilization.
With a well-thought-out 2024 budget that emphasizes capital development, human capital investment, and security, Yobe State is poised to consolidate its gains and unlock new frontiers of sustainable development for its people.
