Lagos, FCT, and Rivers lead states’ IGR growth in 2023. This is what each state collected

Wednesday, 30 October 2024 05:19

Lagos, FCT, and Rivers lead states’ IGR growth in 2023. This is what each state collected

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Lagos, FCT, and Rivers lead states’ IGR growth in 2023. This is what each state collected

Internally generated revenue (IGR) collected by the states reached N2.43 trillion in 2023, a significant 26.03% increase from N1.93 trillion in 2022, as states focused on expanding local revenue in response to fiscal pressures. Data from the National Bureau of Statistics (NBS) show that Lagos, the Federal Capital Territory (FCT), and Rivers State generated the highest revenue, collectively contributing over N1 trillion, or more than 41% of the total IGR.

Lagos accounted for approximately 33.6% of the national IGR with N815.86 billion, while the FCT and Rivers contributed 8.7% and 8%, generating N211.10 billion and N195.41 billion, respectively.

The NBS report categorized IGR into two main sources: taxes and revenue from Ministries, Departments, and Agencies (MDAs). Taxes, including pay-as-you-earn (PAYE), direct assessments, road taxes, stamp duties, and capital gains tax, made up about 80% of the total IGR. PAYE was the largest single source, contributing N1.24 trillion, or around 63.83% of the total tax revenue, underscoring the reliance on employee-based taxes in economically active states like Lagos and the FCT.

Other Leading States

After the top three states, Ogun generated N146.87 billion, comprising N71.67 billion from taxes and N75.19 billion from MDAs. Delta followed with N114.08 billion in IGR, with N90.91 billion from taxes and N23.17 billion from MDAs. Edo recorded N64.67 billion, including N46.17 billion from taxes and N18.5 billion from MDAs.

Kaduna’s IGR rose to N62.49 billion, up by over N4 billion from N58.09 billion in 2022, with N49.02 billion from taxes and N13.46 billion from MDAs. Kwara generated N59.64 billion, including N23.12 billion from taxes and N36.51 billion from MDAs, with notable contributions from unique items such as pilgrimage fees.

Oyo State collected N52.74 billion, with N40.52 billion from taxes and N12.12 billion from MDAs, while Akwa Ibom generated N43.18 billion, with N36.07 billion from taxes and N7.11 billion from MDAs.

Despite gains among leading states, some states struggled with revenue generation. Taraba, Yobe, and Kebbi had the lowest IGR, generating N10.87 billion, N11.74 billion, and N11.74 billion, respectively.