Lagos accounts for 34% of states’ N5.15 trillion IGR in 2025

Lagos State accounted for more than one-third of the internally generated revenue collected by Nigeria’s 36 states and the Federal Capital Territory (FCT) in 2025, maintaining a wide lead over other subnational governments.

Data from the National Bureau of Statistics (NBS) showed that the states and the FCT generated N5.15 trillion in IGR in 2025, up 40.93% from N3.65 trillion recorded in 2024.

Lagos generated N1.77 trillion during the year, representing about 34.4% of the national total. This means roughly N34 out of every N100 generated internally by subnational governments came from Lagos.

What the report says

The NBS report, released on Thursday, showed that Lagos’ IGR comprised N1.48 trillion in tax revenue and N292.64 billion generated by ministries, departments and agencies.

• Rivers State ranked second with N428.42 billion, while Enugu followed closely with N406.77 billion. Together, Lagos, Rivers and Enugu generated about N2.60 trillion, equivalent to just over half of the N5.15 trillion collected nationwide.
• Rivers generated N414.38 billion from taxes and N14.03 billion from MDAs, while Enugu recorded N51.52 billion in tax revenue and N355.25 billion from MDAs.
• The FCT followed with N356.34 billion, all classified as tax revenue in the report. Ogun generated N252.36 billion, comprising N111.29 billion in taxes and N141.06 billion from MDAs.
• Other relatively large collections included Delta at N202.49 billion, Edo at N132.21 billion, Oyo at N103.25 billion, Kano at N102.26 billion and Akwa Ibom at N100.80 billion.
• At the lower end of the table, Yobe recorded the smallest IGR at N16.01 billion, followed by Ebonyi with N17.18 billion and Sokoto with N20.48 billion.

Benue generated N29.57 billion, Taraba N28.16 billion, Zamfara N30.07 billion and Kebbi N31.23 billion, highlighting the wide disparity in states’ capacity to generate revenue internally.

• The report read, “The 36 states and the FCT generated a total of N5.15 trillion in 2025, indicating a growth rate of 40.93% from N3.65 trillion recorded in 2024.
• “Lagos, Rivers, and Enugu states recorded the highest IGR with N1.77 trillion, N428.42 billion and N406.77 billion, respectively over the reference period. Yobe, Ebonyi and Sokoto states reported the least revenues with N16.01 billion, N17.18 billion and N20.48 billion, respectively.”

PAYE dominates tax collections

Tax revenue remained the main source of subnational IGR, contributing N3.79 trillion, or 73.64% of the national total. Revenue generated by MDAs stood at N1.36 trillion.

• Pay As You Earn was the largest tax component, generating N2.64 trillion and accounting for 69.51% of total tax revenue. Capital gains tax was the smallest component at N12.40 billion.
• The NBS classified IGR into two broad categories — tax revenue and MDAs’ revenue. Taxes covered PAYE, direct assessment, road taxes, stamp duties, capital gains tax, withholding taxes, other taxes and local government revenue.

According to the bureau, the IGR data for the 36 states and FCT were compiled by the Joint Revenue Board from official records and submissions by state boards of internal revenue.

The NBS noted that the figures remain subject to reconciliation and updates by the respective subnational revenue authorities.

What you should know

Lagos has consistently maintained its position as Nigeria’s leading state in internally generated revenue.

Nairametrics earlier reported that Nigeria’s 36 states and the Federal Capital Territory (FCT) generated a combined N3.63 trillion in Internally Generated Revenue (IGR) in 2024, with Lagos State alone accounting for more than one-third of the total.

Internally Generated Revenue (IGR) across Nigeria’s 36 states and the Federal Capital Territory (FCT) rose to a cumulative N10.88 trillion between 2021 and 2024, according to NBS.

The upsurge in IGR is driven primarily by tax revenue, particularly in Lagos and Enugu States.