Nigeria State Revenues Rise 41 Percent to N5.15 Trillion

The National Bureau of Statistics reported that Nigeria's 36 states and the Federal Capital Territory generated a combined N5.15 trillion in Internally Generated Revenue (IGR) in 2025. This represents a 40.93 percent increase from the N3.65 trillion recorded in 2024.

Lagos State remained the dominant contributor, generating N1.77 trillion, a sum that exceeded the combined revenue of the 22 lowest-ranking jurisdictions. Other top contributors included Rivers State with N428.42 billion and Enugu State with N406.77 billion. Enugu State saw a significant increase of approximately 125 percent over the previous year, which the Enugu State Internal Revenue Service attributed to increased collection. The Federal Capital Territory ranked fourth with N356.34 billion, while Yobe and Ebonyi states recorded the lowest revenues at N16.01 billion and N17.18 billion, respectively.

Tax revenue constituted the largest share of the total IGR at N3.79 trillion, accounting for 73.64 percent of the total. Pay-As-You-Earn (PAYE) was the primary driver of this growth, contributing N2.64 trillion, while revenue from Ministries, Departments, and Agencies added N1.36 trillion. Despite the overall growth, revenue remains concentrated among a few sub-national governments, leaving many states heavily reliant on federal allocations from the Federation Account to fund operations.