All 36 states in Nigeria and the FCT have pooled N7.82 trillion in Internally Generated Revenue (IGR) in four years.
The breakdown of the N7.82 trillion according to the National Bureau of Statistics (NBS) shows that the IGR in 2023 grew by 16.69 per cent from the N1.93 trillion pooled in 2022. N1.56 trillion was generated in 2020, and N1.90 trillion in 2021.
The period covering 2020 to 2023 saw Lagos state generating the highest IGR of N2.3 trillion, trailed by the Federal Capital Territory (FCT) with N559.5 billion and Rivers state with N551.7 billion.
The latest report from the National Bureau of Statistics (NBS), based on data from the Joint Tax Board (JTB) and submissions from States’ Boards of Internal Revenue, reflects improved economic activity and stronger tax collection across the country.
The nation’s statistics agency stated that the 2021 total of ₦1.90 trillion was spurred by recovery efforts following the COVID-19 pandemic and a growth of 2.55 per cent over the 2020 figure of N1.56 trillion. However, the growth in IGR recorded a marginal increase of 1.57 per cent in 2022 with total IGR reaching ₦1.93 trillion.
In 2023, states generated ₦2.25 trillion, signalling a strong 16.69 per cent rebound in revenue collection. The report highlights this growth as evidence of renewed economic momentum and better tax compliance efforts by state authorities.
Interestingly, another section of the report noted that the total IGR for 2023 is estimated at ₦2.43 trillion, reflecting a 26.03 per cent growth from the ₦1.93 trillion recorded in 2022.
Lagos, FCT, and Rivers Lead in Revenue Collection
Lagos, the FCT, and Rivers states continued to dominate IGR generation in 2023, recording ₦815.86 billion, ₦211.10 billion, and ₦195.41 billion, respectively. These three accounted for a significant portion of the total revenue generated by all 36 states.
At the other end of the spectrum, Taraba, Yobe, and Kebbi states reported the lowest IGR figures, with ₦10.87 billion, ₦11.19 billion, and ₦11.74 billion, respectively.
PAYE Dominates Tax Revenue Collection
The NBS report also shows that Pay As You Earn (PAYE) was the largest contributor, bringing in ₦1.24 trillion and representing 63.83 per cent of the total taxes collected.
On the other hand, capital gains tax accounted for the least revenue, generating ₦5.91 billion. Overall, taxes made up approximately 80 per cent of total IGR nationally.
The steady growth in IGR reflects a stronger focus on tax collection and enforcement across the states, but the NBS report also highlights the disparities in revenue generation among states, with wealthier regions like Lagos and Rivers significantly outperforming others.
This surge in internally generated revenue could have important implications for state-level development, as it may enable more robust public services and infrastructure investments across the country.
Comments are closed.