Cross River State is gradually decoupling from the Federation Account Allocation Committee, FAAC, with internally generated revenue, IGR, now covering about 30% of its fiscal obligations.
This was highlighted after TheCableindex_news published a list on its X handle, citing data from the National Bureau of Statistics, NBS, of 25 States that depend on FAAC for 80% or more of their fiscal needs. Cross River State was notably absent from the list, a clear indication of the progress made under the administration of Governor Bassey Edet Otu.
The report further showed that 26 States recorded a fiscal surplus in Q1 2026. Oyo topped the chart with ₦130.34 billion, while Cross River came in 17th position after recording ₦63.36 billion in revenue against ₦48.01 billion in expenditure, leaving a balance of ₦15.35 billion.
According to the Cross River Internal Revenue Service, CRIRS, the State’s IGR rose from ₦22 billion in December 2022 to ₦46 billion in December 2024. The surge has been attributed to tax automation, stronger collection processes, including creation of data mining units and other reforms aimed at reducing reliance on federal allocations.
The Chairman of CRIRS, Dr. Edwin Okon, said the agency is targeting ₦10 billion in monthly IGR. He noted that the target will be driven by newly enacted federal tax reform laws, which are expected to widen the State’s revenue base without increasing the burden on low-income earners.
Reacting to the NBS ranking on Wednesday, the Director of Accounts, CRIRS, Mr. Edem Enifon, described the development as “the dividend of genuine reform backed by strong political will”.
“Immediately Governor Otu assumed office, and with the State reclassified as a non-oil-producing State, the Service, under the dynamic leadership of Dr. Edwin Okon, began to look inward. The effort has yielded positive results that have now placed us higher on the IGR ladder in the country,” he said.
Enifon added that the State can now comfortably fund over 30% of its monthly capital needs from IGR.
“This magic came when the Government automated all forms of tax payment. From the ₦64 billion projected for 2026, our half-year review shows we have already generated over ₦31 billion. Since tax remittances peak toward year-end, we are confident of surpassing our target.
“One of the major revenue drivers is the forestry and mining sectors. Monthly income from forestry, which used to be about ₦100 million, is now between ₦400 million and ₦450 million. Other sectors have also recorded significant growth, all thanks to digitization and an expanded tax base,” he stated.
He further noted that despite Cross River ranking low in FAAC allocations, the State has harmonized tax collection, harnessed available sectors, and blocked leakages.
“To sustain this, Government has prioritized the training and retraining of revenue officers within and outside the State, and introduced incentives to boost staff morale, as well as introduction of new revenue post like the revenue assurance, new growth area, high net worth individual. The results have been remarkable,” Enifon said.
He, however, appealed for more utility vehicles to aid operations, noting that while some vehicles have been provided by the Chairman to cushion mobility challenges, more are needed to cover the vast areas of the State.
With these reforms, the Otu-led administration says it is pushing toward the ultimate goal of complete decoupling from federal allocations.
By Nakanda Iyadim
