Nigeria’s internally generated revenue for 2023 hit N2.43 trillion, representing a 26.03 percent increase from the N1.93 trillion recorded in 2022.
This rise underscores the intensified efforts by states to boost local revenue generation amid rising fiscal challenges, according to data from the National Bureau of Statistics
Leading the IGR performance were Lagos State, the Federal Capital Territory and Rivers State, which collectively contributed over N1 trillion—over 41 percent of the total revenue generated across all states.
Lagos alone accounted for 33.6 percent, bringing in N815.86 billion, while the FCT and Rivers followed with N211.10 billion (8.7 percent) and N195.41 billion (8 percent), respectively.
The NBS report classified IGR into two primary categories, taxes and revenue from Ministries, Departments, and Agencies.
Taxes—which include pay-as-you-earndirect assessment, road taxes, stamp duties, and capital gains tax—formed the bulk of the IGR, comprising around 80 percent of the nationwide total.
PAYE emerged as the largest source of tax revenue, bringing in approximately N1.24 trillion and accounting for 63.83 percent of the total tax income.
This substantial figure highlights the states’ dependency on employee-related tax collections, particularly in economically vibrant regions like Lagos and the FCT.
Following the top contributors, Ogun State ranked fourth, generating N146.87 billion, of which N71.67 billion came from taxes and N75.19 billion from MDAs. Delta State recorded an IGR of N114.08 billion, including N90.91 billion from taxes and N23.17 billion from MDAs, showcasing robust contributions from both sectors.
Other notable performers included Edo, Kaduna, and Kwara. Edo State reported N64.67 billion in IGR, composed of N46.17 billion from taxes and N18.5 billion from MDAs.
Kaduna saw a rise in its revenue, reaching N62.49 billion in 2023, an increase from N58.09 billion in 2022. Of this total, N49.02 billion originated from taxes, while MDAs generated N13.46 billion.
Kwara State’s IGR climbed to N59.64 billion, split between N23.12 billion from taxes and N36.51 billion from MDAs, with the report noting that Kwara’s revenue structure was unique, including collections from pilgrimage fees.
Oyo State generated N52.74 billion, of which taxes contributed N40.52 billion, and MDAs brought in N12.12 billion. Akwa Ibom collected N43.18 billion in total IGR, split into N36.07 billion from taxes and N7.11 billion from MDAs.
While the top states achieved significant revenue gains, other states lagged far behind. Taraba, Yobe, and Kebbi generated the lowest IGR figures, with revenues of N10.87 billion, N11.74 billion, and N11.74 billion, respectively.
