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Nigeria’s subnational governments generated a combined N5.15 trillion in Internally Generated Revenue (IGR) in 2025, representing a 40.93% increase from the N3.65 trillion recorded in 2024.
According to the IGR data, the top 10 revenue-generating jurisdictions raised a combined N3.85 trillion in 2025, accounting for nearly 75% of the N5.15 trillion generated by all states and the FCT combined.
This represents a 42.67% increase from the N2.70 trillion recorded by the top 10 jurisdictions in 2024.
Notably, Lagos State remained Nigeria’s largest revenue-generating subnational economy. The top three alone — Lagos, Rivers and Enugu — generated about N2.60 trillion, accounting for roughly 50.6% of the national total, while Lagos alone generated more than the combined IGR of 22 other states lower down the ranking.
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The 22 jurisdictions generated about N909.35 billion, compared with Lagos’ N1.77 trillion.
The figures also show an interesting shift in the composition of revenue. While tax revenue remains the major source of IGR nationally, some states recorded substantial contributions from Ministries, Departments and Agencies (MDAs), with Enugu standing out.
What the data is saying
At the national level, the NBS data showed that IGR comes from two broad sources: tax revenue and revenue generated by Ministries, Departments and Agencies (MDAs).
- Tax revenue covers PAYE, direct assessment, road taxes, stamp duties, capital gains tax, withholding tax, other taxes and LGA revenue.
- In 2025, total tax revenue across the 36 states and FCT stood at about N3.79 trillion from N2.68 generated in 2024, representing 41.2% year-on-year growth.
- MDAs generated N1.36 trillion in 2025, compared to N968.16 generated in the prior year, a 402% increase
- PAYE, the largest individual tax component, generated N2.64 trillion, followed by withholding tax at N503.46 billion.
Significantly, PAYE remained the dominant source of internally generated revenue across most states, highlighting the continued importance of formal employment and payroll taxation to state finances.
States with Highest Internally Generated Revenue (IGR) – 2025
Akwa Ibom — N100.80 billion
Akwa Ibom rounded off the top 10 with N100.80 billion in IGR. The state increased its internally generated revenue from N75.77 billion in 2024, representing a 33.04% increase, despite slipping to the tenth position from eight-place in the previous year.
The state’s revenue growth was driven largely by oil and gas-related economic activities, robust PAYE collections from public sector workers of N55.23 billion, accounting for the largest share of its tax collections of N63.07 billion and expanding commercial activity across the hospitality and aviation value chains.
Akwa Ibom’s MDA revenue also made a sizeable contribution of N37.73 billion, accounting for about 37.4% of the total IGR.
- Withholding tax – N5.40 billion
- Road taxes – N1.21 billion
- Other taxes – N669.03 million
- Direct assessment – N309.36 million
- Stamp duties – N258.39 million
Kano — N102.26 billion
Kano generated N102.26 billion in IGR in 2025, a 36.76% increase from the N74.77 billion recorded in 2024, retaining its position as the Northern Nigeria’s largest revenue generator.
This places Kano among the largest revenue-generating jurisdictions despite its relatively lower ranking in 2024, when it occupied 10th position.
Kano’s IGR performance was supported by its position as Northern Nigeria’s commercial hub, with large wholesale and distribution markets, a sizeable manufacturing and agro-processing sector, and extensive trade networks that connect the state to major markets across the region and neighboring countries.
The state’s PAYE contributed N45.65 billion, making it the largest tax source and MDA revenue of N27.08 billion with total tax revenue of N75.18 billion.
- Withholding tax – N5.43 billion
- Other taxes – N3.48 billion
- Direct assessment – N1.14 billion
- Road taxes – N1.06 billion
- Stamp duties – N19.30 billion
- Capital gains tax – N120.54 million
Oyo — N103.25 billion
Oyo State generated N103.25 billion in 2025, up from N65.29 billion in 2024.
The state’s IGR increased by 58.14%, representing an additional N37.96 billion, one of the strongest growth performance among the top 10 states.
The state moved from 14th position in 2024 to eighth in 2025.
The growth in Oyo’s internally generated revenue is majorly driven by Ibadan’s expanding urban footprint, increased activity across the retail, education, and technology sectors, as well as improvements in revenue collection mechanisms that enhanced tax compliance and remittances.
Tax revenue contributed N83.62 billion, accounting for roughly 81% of Oyo’s total IGR. while MDA revenue stood at N19.63 billion with PAYE contributing the largest with N59.09 billion.
- Withholding tax – N8.33 billion
- Other taxes – N4.73 billion
- Direct assessment – N1.79 billion
- Road taxes – N1.34 billion
- Stamp duties – N7.14 billion
- Capital gains tax – N1.19 billion
Edo — N132.21 billion
Edo State generated N132.21 billion in 2025, rising from N91.15 billion in 2024.
The state’s IGR increased by 45.04%, adding about N41.06 billion year-on-year.
The state retained the seventh position it held in the previous year.
The increase in Edo’s internally generated revenue reflects the impact of ongoing tax administration reforms, broader formalization of economic activities, and continued growth across the state’s commercial and service sectors.
Edo recorded Tax revenue of N84.55 billion, accounting for about 64% of Edo’s total IGR, while PAYE remained the largest individual tax source at N61.59 billion with MDA revenue at N47.66 billion
- Withholding tax – N10.89 billion
- Other taxes – N5.34 billion
- Direct assessment – N2.45 billion
- Road taxes – N2.14 billion
- LGA revenue – N2.05 billion
- Stamp duties – N53.93 million
- Capital gains tax – N31.12 million
Delta — N202.49 billion
Delta State ranked sixth, generating N202.49 billion in 2025, retaining the same position.
This was 28.33% higher than its N157.79 billion collection in 2024, representing an additional N44.70 billion.
Tax revenue accounted for N172.39 billion, contributing 85.1% to Delta’s IGR, while MDA revenue contributed N30.10 billion. PAYE was again the major tax contributor at N139.66 billion.
The state’s IGR growth reflects the combined impact of Delta’s oil and gas economy, a sizeable base of salaried workers contributing to PAYE collections and increasing business activity in key commercial centers including Warri, Asaba, and other urban hubs across the state.
- Withholding tax – N18.42 billion
- Stamp duties – N4.76 billion
- Other taxes – N5.69 billion
- Road taxes – N3.33 billion
- Direct assessment – N499.24 million
- Capital gains tax – N10.78 million
Ogun — N252.36 billion
Ogun State generated N252.36 billion in 2025, up from N194.93 billion in 2024.
The 29.46% increase added N57.42 billion to the state’s revenue, despite slipping from its fifth place in 2025.
Ogun’s IGR comprised tax revenue of N111.29 billion, with PAYE as the biggest contributor at N70.37 billion. MDA revenue was N141.06 billion
Unlike Lagos and Rivers, MDA revenue was larger than tax revenue, accounting for 55.9% of total IGR.
Ogun’s position reflects the size of its industrial, commercial, and residential economic base, particularly its close economic links with Lagos, although the IGR data itself does not attribute the increase to any single sector.
- Withholding tax – N29.34 billion
- Other taxes – N8.23 billion
- Stamp duties – N1.99 billion
- Road taxes – N2.12 billion
- LGA revenue – N2.07 billion
- Direct assessment – N4.89 billion
- Capital gains tax – N1.33 billion
FCT — N356.34 billion
The Federal Capital Territory ranked fourth, with N356.34 billion in IGR.
This was an increase of 26.20% from N282.36 billion in 2024, adding almost N73.97 billion.
The state moved from third position in 2024 to fourth in 2025.
Unlike most jurisdictions, PAYE was responsible for the overwhelming majority of the FCT’s collection at N320.15 billion with no MDA revenue recorded.
The FCT’s IGR growth reflects the territory’s unique economic structure, characterized by a large base of federal and private-sector workers, real estate and business registration activities, and consistently strong PAYE compliance, which remains the dominant source of internally generated revenue.
- Withholding tax – N27.51 billion
- Other taxes – N4.59 billion
- Direct assessment – N3.21 billion
- Capital gains tax – N830.15 million
- Stamp duties – N432.00 million
Enugu — N406.77 billion
Enugu delivered one of the most remarkable performances in 2025, generating N406.77 billion, compared to N180.50 billion in 2024, moving from fifth position in 2024 to third in 2025.
The state recorded a staggering 125.36% increase, or an additional N226.27 billion, the highest among the top 10 jurisdictions.
The Enugu State Government has attributed the increase to reforms including technology deployment, e-payment systems, widening the tax base, and efforts to block revenue leakages.
The state recorded tax revenue of N51.52 billion while MDA revenue of N355.25 billion contributed 87.3% of Enugu’s 2025 IGR and only 12.7% came from taxes.
- PAYE – N25.25 billion
- Other taxes – N15.89 billion
- Withholding tax – N6.46 billion
- Direct assessment – N1.70 billion
- Road taxes – N1.13 billion
- LGA revenue – N786.08 million
- Capital gains tax – N237.23 million
- Stamp duties – N68.36 million
Rivers — N428.42 billion
Rivers State retained the second position, generating N428.42 billion in 2025.
The figure represents a 35.02% increase from N317.30 billion in 2024, adding about N111.11 billion to its internally generated revenue.
Rivers’ IGR was significantly driven by tax revenue of N414.38 billion, accounting for 96.7% of the state’s total IGR and MDA revenue of N14.03 billion. PAYE was the largest revenue source, generating N359.21 billion.
The composition shows how strongly Rivers’ IGR is linked to personal income taxation and formal economic activity within the state.
- Other taxes – N27.59 billion
- Withholding tax – N18.64 billion
- Direct assessment – N6.26 billion
- Stamp duties – N3.39 billion
- Capital gains tax – N1.49 billion
- Road taxes – N843 million
Lagos — N1.77 trillion
Lagos State remained Nigeria’s largest IGR generator in 2025, recording N1.77 trillion, compared with N1.26 trillion in 2024.
This represents a 40.24% increase, translating to an additional N507.64 billion in revenue within one year.
Lagos accounted for 34.36% of the combined IGR of the 36 states and FCT.
In other words, about N34 out of every N100 generated internally by Nigeria’s subnational governments came from Lagos.
The state’s revenue base remains highly diversified, benefiting from its status as Nigeria’s commercial capital and host to the country’s largest concentration of corporate headquarters, financial institutions, manufacturing firms, ports, and service-sector businesses.
The state’s tax revenue stood at N1.48 trillion, accounting for 83.5% of Lagos’ total IGR, while MDA revenue generated N292.64 billion, contributing the remaining 16.5%.
The largest component that drives the state’s revenue was PAYE, which generated N993.31 billion. Its MDA revenue also contributed a substantial N292.64 billion, making it one of the states with a significant non-tax revenue stream.
- Withholding tax – N291.08 billion
- Stamp duties – N41.94 billion
- Other taxes – N41.08 billion
- LGA revenue – N16.30 billion
- Road taxes – N16.87 billion
- Direct assessment – N7.24 billion
- Capital gains tax – N3.56 billion
The numbers show that Lagos’ revenue is heavily anchored on taxes paid by individuals and businesses operating within the state’s large formal economy.
