Victor Ezeja
Internally Generated Revenue (IGR) is a vital component of state finances in Nigeria representing the funds that they generate independent of federal allocations that come monthly.
The level of IGR of a state to a large extent determines the financial viability of the state when stripped of federal allocations.
Join our WhatsApp ChannelIn this article, we will highlight 10 states in Nigeria with the highest Internally Generated Revenue in 2023.
According to data released by the National Bureau of Statistics (NBS), the 36 states of the federation and the FCT combined, generated a total of N2.43 trillion as IGR in 2023. This reflects a growth rate of 26.03 per cent from N1.93 trillion recorded in 2022.
The report highlights two main revenue sources: taxes and Ministries Departments and Agencies (MDAs). It said that taxes include Pay as you earn (PAYE), Direct Assessment, road taxes, Stamp Duties, Capital Gain tax, withholding taxes, other taxes and LGAs revenue.
PAYE, according to the report, was the most tax revenue recorded during the period (N1.24 trillion), representing 63.83 per cent of the total taxes collected, while capital gains tax was the least with N5.91 billion.
READ ALSO: Growing Concern As Nigerian States Trapped In Debt Despite Rising Revenues
Lagos N815.86 billion
The NBS data revealed that Lagos generated the highest IGR with N815.86 billion, indicating 25.29 per cent growth from N651.14 billion in 2022. Though its IGR dropped in 2022 by 13.58 per cent from 2021 (N753.46 billion), it was able to generate more revenue in 2023, surpassing the 2021 figure.
Lagos has consistently taken the first position in generating the highest IGR over the years. This according to analysts, is largely due to its status as the commercial hub of the country with many economic activities going on. The South-west state’s 2023 IGR figure is more than the combined total of 18 other states and surpasses the total IGR of three regions – South-east, North-west and North-east.
Abuja (FCT) N211.10 billion
The Federal Capital Territory (FCT) Abuja came second with a total IGR of N211.10 billion indicating a 69.74 per cent increase from 2022. The NBS data indicate that since 2020, FCT has maintained an increase in IGR growth. From N92.05 billion in 2020, the FCT revenue surged by 43.31 per cent to 131.92 billion in 2021. It however dropped to N124.36 billion in 2022 before increasing again in 2023.
Rivers N195.41 billion
Rivers State came third with N195.41 billion recording 13.07 per cent revenue growth from N172.82 billion in 2022. Analysis of the oil-rich South-south state’ Internally Generated Revenue trajectory shows that it has maintained a steady growth since 2020. From N117.18 billion in 2020, it increased to N123.34 billion in 2021 and jumped to N172.82 billion in 2022.
Rivers has also had a history of being among the top three states with the highest IGR.
Ogun N146.87 billion
Ogun State in South-west took the fourth place with N146.87 billion IGR in 2023. This is an increase of 21.80 per cent increase from N120.58 billion recorded in 2022. Like Rivers, Ogun has also maintained a steady growth in IGR since 2020. With N50.56 billion in 2020, it jumped by 99.23 per cent to N100.73 billion in 2021 and rose to N120.58 billion in 2022.
Delta N114.1 billion
Delta State in South-south took fifth place with N114.1 billion IGR in 2023. This means 32.81 per cent compared to 2022 IGR which stood at N85.90 billion. Between 2020 and 2023, the IGR of Delta has increased by 91.02 per cent from N59.73 billion to N114.1 billion.
Edo N64.67 billion
Edo State also in South-south was the sixth state with highest IGR. It increased by 36.29 per cent to N64.67 billion in 2023 from N47.45 billion in 2022.
Kaduna N62.49 billion
Kaduna State in North-west recorded N62.49 billion as IGR in 2023, taking the seventh position. This is an increase of 7.56 per cent from 2022 (N50.1 billion).
Kwara N59.64 billion
Kwara State in North central took eightieth position in IGR in 2023 with N59.64 billion. When compared to 2022, the state recorded an increase of 66.82 per cent from N35.75 billion in 2022. The state has also seen steady rise in IGR in the last three years. From N19.62 billion in 2020, it increased to N26.96 billion in 2021, and N35.75 billion in 2022.
Oyo N52.74 billion
Oyo State in South-west recorded N52.74 billion, becoming the ninth state with highest IGR in 2023. It had a decrease of 15.26 per cent from N62.24 billion in 2022 to N52.74 billion in 2023.
Ondo N41.50 billion
Ondo, also in South-west region, is the tenth state with highest IGR in 2023 having recorded N41.50 billion. This is an increase of 27.14 per cent from N32.64 billion in 2022.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
