The 36 states and the Federal Capital Territory (FCT) collectively generate N2.43 trillion in Internally Generated Revenue (IGR) in 2023, reflecting a 26.03% increase from the N1.93 trillion recorded in 2022, according to the National Bureau of Statistics (NBS) IGR report for 2023.
Lagos, the FCT, and Rivers lead in IGR collection, generating N815.86 billion, N211.10 billion, and N195.41 billion, respectively, during this period. In contrast, Taraba, Yobe, and Kebbi report the lowest revenues, with N10.87 billion, N11.19 billion, and N11.74 billion, respectively.
The report highlights that Pay-As-You-Earn (PAYE) contributes the most to tax revenue, amounting to N1.24 trillion, or 63.83% of the total taxes collected. Capital gains tax accounts for the least, generating N5.91 billion. Nationally, total taxes make up about 80% of the overall IGR.
The ten states with the highest IGR in 2023 collectively generate N1.775 trillion in IGR, representing approximately 73.1% of the total IGR generated by the 36 states and the FCT. Notably, seven of the top ten states are located in the South, while three are from the Northern part of the country.
The top ten states with the highest IGR in 2023 are:
- Akwa Ibom: This state collects N43.18 billion in total IGR, comprising N36.07 billion in taxes and N7.11 billion from MDAs. Akwa Ibom increases its revenues by 24% from N34.81 billion in 2022.
- Oyo: This Southwestern state generates N52.74 billion in IGR, which includes N40.52 billion in taxes and N12.12 billion from MDAs. Oyo’s IGR declines by nearly N10 billion from N62.24 billion in 2022.
- Kwara: As the first Northern state on the list, Kwara collects N59.64 billion in IGR, with N23.12 billion in taxes and N36.51 billion from MDAs. Kwara sees a 66.8% increase from N35.75 billion in 2022.
- Kaduna: The state’s IGR reaches N62.49 billion in 2023, representing an increase of just over N4 billion from N58.09 billion in 2022, comprising N49.02 billion in taxes and N13.46 billion from MDAs.
- Edo: Edo records N64.67 billion in IGR, made up of N46.17 billion in taxes and N18.5 billion from MDAs. The state increases its IGR from N47.45 billion in 2022.
- Delta: This oil-rich state generates N90.91 billion from taxes and N23.17 billion from MDAs, totaling N114.08 billion. Delta’s IGR increases by 32.8% from N85.9 billion in 2022.
- Ogun: Close to Nigeria’s economic hub, Ogun generates N146.87 billion, consisting of N71.67 billion in tax revenues and N75.19 billion from MDAs. Ogun’s IGR rises from N120.58 billion in the previous year.
- Rivers: This Niger Delta state records N195.41 billion, comprised of N186.96 billion in taxes and N8.447 billion from MDAs. Rivers State increases its IGR from N172.82 billion in 2022.
- FCT: The nation’s capital increases its revenue by nearly 70% (69.7%), growing from N124.36 billion to N211.10 billion. The FCT does not generate revenues from MDAs.
- Lagos: The economic powerhouse of Nigeria generates an impressive N815.86 billion, which includes N704.90 billion in taxes and N110.96 billion from MDAs. Lagos achieves a 25% growth from N615.14 billion in the previous year, surpassing its nearest competitor by N604.76 billion in 2023.
