The National Bureau of Statistics (NBS) has released new data showing that Nigeria’s 36 states and the Federal Capital Territory (FCT) collectively generated an impressive N2.43 trillion in Internally Generated Revenue (IGR) in 2023.
This marks a 26% increase from the N1.93 trillion recorded in 2022, highlighting a significant boost in revenue generation efforts nationwide.
According to the NBS report, the surge in IGR was primarily driven by taxes and revenues from various Ministries, Departments, and Agencies (MDAs). Among the tax categories, the Pay As You Earn (PAYE) tax was the highest contributor, generating N1.24 trillion, which accounted for 63.8% of the total tax revenue collected across the country.
Leading the IGR rankings were Lagos, the FCT, and Rivers State, with Lagos topping the list at N815.86 billion, followed by the FCT at N211.10 billion, and Rivers at N195.41 billion. In contrast, Taraba, Yobe, and Kebbi recorded the lowest IGR figures, with values of N10.87 billion, N11.19 billion, and N11.74 billion, respectively.
The report highlights that the total taxes collected accounted for nearly 80% of the overall IGR, underscoring the importance of tax revenue in state finances. Capital gains tax, however, made the smallest impact, bringing in only N5.91 billion.
This increase in IGR reflects the ongoing efforts by states to strengthen their revenue-generating mechanisms, especially amid economic pressures. As states seek greater financial independence, the trend points to an evolving fiscal landscape with a stronger emphasis on internal revenue to support local development and reduce dependency on federal allocations.
