States, FCT Generate N2.43 Trillion in IGR in 2023: NBS Report
By Patience Ikpeme
The National Bureau of Statistics (NBS) has reported that Nigeria’s 36 states and the Federal Capital Territory (FCT) generated 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 report, Lagos, FCT, and Rivers states led the IGR figures, bringing in N815.86 billion, N211.10 billion, and N195.41 billion respectively. Meanwhile, Taraba, Yobe, and Kebbi reported the lowest revenues with N10.87 billion, N11.19 billion, and N11.74 billion respectively.
The report highlighted that Pay As You Earn (PAYE) tax was the largest revenue source, contributing N1.24 trillion, or 63.83% of the total IGR. The smallest contribution came from capital gains tax, at N5.91 billion. Taxes made up 80% of the overall IGR, with the remainder from various state-level administrative fees and services.
The IGR data was compiled by the Joint Tax Board (JTB) from state Boards of Internal Revenue and included MDAs revenue, generated by state Ministries, Departments, and Agencies (MDAs) through service fees. PAYE, deducted directly from employee wages in the formal sector, led the contributions, while road taxes were collected from commercial transport operators. Additional taxes included market levies, land registration fees, development levies, and gaming fees.
Breakdown of Top State IGR Figures
Lagos State: N815.86 billion, with N704.9 billion from taxes and N110.9 billion from MDAs.
FCT: N211.10 billion, exclusively from taxes.
Rivers State: N195.41 billion, with N186.9 billion from taxes and N8.447 billion from MDAs.
Notable IGR Figures from Other States
Ogun: N146.8 billion, split between N71.6 billion in taxes and N71.7 billion from MDAs.
Delta: N114.08 billion, with N90.9 billion in taxes and N23.176 billion from MDAs.
Edo: N64.671 billion, comprising N46.170 billion in taxes and N18.501 billion from MDAs.
Kaduna: N62.490 billion, with N49.025 billion from taxes and N13.464 billion from MDAs.
Kwara: N59.642 billion, with N23.129 billion in taxes and N36.513 billion from MDAs.
Oyo: N52.745 billion, with N40.526 billion in taxes and N12.218 billion from MDAs.
Other states including Akwa Ibom, Ondo, Kano, Enugu, Anambra, and Ekiti also recorded significant IGR collections ranging between N32 billion and N43 billion.
The report showcases efforts by various states to diversify their revenue streams, demonstrating the critical role of public-private collaboration in achieving a sustainable revenue base. The states’ IGR collections are integral to their financial autonomy and development agendas, with several states making strides in administrative revenue and tax collection efforts.
The upward trend in IGR underscores the importance of effective revenue management and economic diversification, as states continue to implement measures that promote fiscal independence. The NBS report serves as an essential metric for evaluating state-level financial performance, informing policy adjustments and investment priorities in the coming years.
