KEY POINTS
• States and the FCT generated N5.15 trillion in internally generated revenue in 2025.
• IGR increased 40.93 per cent from N3.65 trillion recorded in 2024.
• Lagos led with N1.77 trillion, followed by Rivers and Enugu.
• PAYE accounted for 69.51 per cent of total tax revenue collected.
MAIN STORY
The 36 states and the Federal Capital Territory generated a combined N5.15 trillion in internally generated revenue in 2025, representing a 40.93 per cent increase from the N3.65 trillion recorded in 2024.
The National Bureau of Statistics disclosed this in its State Level Internally Generated Revenue report for 2025, released on Thursday in Abuja.
According to the report, the revenue came mainly from taxes and revenue generated by Ministries, Departments and Agencies.
The tax category covered Pay As You Earn, Direct Assessment, Road Taxes, Stamp Duties, Capital Gains Tax, Withholding Taxes, other taxes and revenue from local government areas.
Lagos recorded the highest IGR among the states during the year, generating N1.77 trillion. Rivers followed with N428.42 billion, while Enugu generated N406.77 billion.
At the lower end, Yobe recorded N16.01 billion, Ebonyi generated N17.18 billion and Sokoto recorded N20.48 billion in IGR.
Pay As You Earn remained the largest tax revenue source in 2025, generating N2.64 trillion. The figure represented 69.51 per cent of total tax revenue collected during the period.
Capital Gains Tax recorded the lowest revenue among the listed tax sources, generating N12.40 billion.
Nationally, tax revenue accounted for 73.64 per cent of total internally generated revenue recorded by the states and the FCT in 2025.
THE ISSUES
- The 40.93 per cent increase means combined internally generated revenue rose by about N1.50 trillion between 2024 and 2025, based on the NBS figures.
- Revenue generation remained uneven across states, with Lagos recording N1.77 trillion while Yobe, Ebonyi and Sokoto each generated less than N21 billion.
- Taxes accounted for the largest share of state generated revenue, contributing 73.64 per cent of total IGR nationally.
- Pay As You Earn was particularly significant within tax collections, accounting for 69.51 per cent of total tax revenue and generating N2.64 trillion.
WHAT’S NEXT
The NBS report provides the latest annual breakdown of internally generated revenue across the 36 states and the FCT, including the major tax and non tax revenue sources recorded during 2025.
BOTTOM LINE
States and the FCT increased their combined internally generated revenue by 40.93 per cent to N5.15 trillion in 2025. Lagos remained the largest contributor, while PAYE accounted for the bulk of tax revenue.
