In 2023, Nigeria’s 36 states and the Federal Capital Territory (FCT) collectively amassed N2.43 trillion in Internally Generated Revenue (IGR), marking a 26.03% increase over the N1.93 trillion generated in 2022, as detailed in the latest report from the National Bureau of Statistics (NBS).
Top IGR Contributors: Lagos, FCT, and Rivers
Leading the charge in revenue collection were Lagos, the FCT, and Rivers State, bringing in N815.86 billion, N211.10 billion, and N195.41 billion, respectively. In stark contrast, the states with the lowest IGR numbers included Taraba, Yobe, and Kebbi, which generated N10.87 billion, N11.19 billion, and N11.74 billion, respectively.
Major Revenue Source: Pay-As-You-Earn (PAYE)
PAYE served as the most significant revenue source, contributing N1.24 trillion, or approximately 63.83% of the total tax revenue. At the other end, capital gains tax generated a modest N5.91 billion, accounting for the smallest portion. Overall, tax revenue made up about 80% of Nigeria’s total IGR in 2023.
Ten States with the Highest IGR
The ten states that led in IGR collection collectively generated N1.775 trillion, accounting for 73.1% of the total IGR from the 36 states and the FCT in 2023. Notably, seven of these top contributors are southern states, with only three from the northern part of Nigeria. The rankings are as follows:
10. Akwa Ibom
Akwa Ibom generated N43.18 billion in IGR in 2023, with N36.07 billion from taxes and N7.11 billion from revenue by Ministries, Departments, and Agencies (MDAs). Between 2022 and 2023, the state increased its IGR by 24%, up from N34.81 billion in 2022.
9. Oyo
Oyo State generated N52.74 billion in 2023, including N40.52 billion in taxes and N12.12 billion from MDAs. However, this was a reduction from 2022, when the state recorded N62.24 billion. Despite this dip, Oyo’s IGR in 2021 had stood at N52.08 billion, showing slight fluctuations over the years.
8. Kwara
Kwara, the first northern state in the top ten, collected N59.64 billion in IGR in 2023, split into N23.12 billion from taxes and N36.51 billion from MDAs. Kwara saw a notable rise in revenue collection, with a 66.8% increase from N35.75 billion in 2022.
7. Kaduna
Kaduna State reported N62.49 billion in IGR in 2023, up by over N4 billion from the N58.09 billion collected in 2022. The revenue was split into N49.02 billion from taxes and N13.46 billion from MDAs.
6. Edo
Edo State generated N64.67 billion in 2023, with N46.17 billion from taxes and N18.5 billion from MDAs, representing growth from N47.45 billion the previous year.
5. Delta
Delta State, one of Nigeria’s oil-rich regions, collected N114.08 billion in IGR for 2023, with N90.91 billion from taxes and N23.17 billion from MDAs. This marked a 32.8% increase from its 2022 IGR of N85.9 billion.
4. Ogun
Ogun State, neighboring Lagos, generated N146.87 billion in 2023, with N71.67 billion from taxes and N75.19 billion from MDAs. The state’s IGR rose from N120.58 billion in 2022.
3. Rivers
Rivers, located in the Niger Delta, generated N195.41 billion in 2023, consisting of N186.96 billion in taxes and N8.447 billion from MDAs. This was an increase of N22.59 billion from the previous year’s N172.82 billion.
2. FCT
The FCT boosted its IGR significantly by nearly 70% from N124.36 billion in 2022 to N211.10 billion in 2023. Unlike other states, the FCT does not generate revenue from MDAs.
1. Lagos
Lagos, Nigeria’s economic powerhouse, recorded N815.86 billion in 2023, with N704.90 billion from taxes and N110.96 billion from MDAs. Lagos achieved a 25% increase from N615.14 billion in 2022, topping its nearest competitor by N604.76 billion.
This breakdown reveals a significant regional disparity in IGR collection, highlighting the economic strength of southern states, especially Lagos.
Data by Nairametrics
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