The declining returns from Internally Generated Revenue (IGR) in Delta State and corresponding drop in its contribution to the yearly budget raises serious red flags about the state’s financial management, New Delta Coalition, a pressure group, has said.

In press statement issued by Mr. Godwin Anaughe on behalf of the group, they noted that Delta State’s IGR has “stalled, indicating potential underreporting and widespread fraud in revenue collection.”

“This indicates a heavy reliance on federal allocations and external revenue sources, which is concerning, especially when compared to other states like Lagos, FCT, Rivers and Ogun, which have achieved significantly higher IGR figures.

“Additionally, the downward spiral of IGR is troubling. In 2023, the IGR of N87.6 billion for the period January to September accounted for 17.35% of the total budget. This year’s IGR accounts for a meagre 16.35% of the approved budget. Next year’s figure of 15% confirms a negative trend that raises serious red flag about the state’s financial management,” the New Delta Coalition noted.

“Clearly, the state’s IGR has stalled, indicating potential underreporting and widespread fraud in revenue collection. Indeed, the revenue collection system established during Senator Ifeanyi Okowa’s tenure, where party chieftains act as consultants collecting revenue and remitting a percentage to the government, has failed woefully.

“The low IGR is a clear indication of successive administrations’ failure to drive economic growth and diversification, as well as explore alternative revenue streams beyond oil and gas. This lack of self-sustenance undermines the state’s economic potential.

The group classified the state’s 2025 budget projection as primarily driven by increased FAAC allocations and is a “blatant attempt to obscure the truth about the state’s financial struggles”.

Noting that Delta’s economic potential, driven by its rich natural resources, including crude oil and natural gas, remains largely untapped, they said failure to harness its tourism potential, despite boasting beautiful landscapes and cultural attractions, is a missed opportunity for revenue generation.

“The New Delta Coalition urges Governor Oborevwori to capitalise on opportunities presented by President Bola Tinubu’s economic reforms, which have boosted FAAC allocations and agricultural prices. By introducing reforms and initiatives promoting farming, food processing, and basic infrastructure, Delta State can break free from financial constraints and secure sustainable growth for its citizens,” they urged Governor Oborevwori.