Data from the National Bureau of Statistics (NBS) has shown that the total internally generated revenue (IGR), by the 36 states and the Federal Captial Territory (FCT) climbed to N1.93 trillion in 2022.
The IGR is 1.57 per cent higher than the N1.896 trillion generated by the states in 2021.
Findings also showed that the states have slowly maintained an improvement in IGR within the last four years.
In 2019, the 36 states and FCT pulled a total of N1.64 trillion as IGR while in 2020, there was a drop to N1.56 trillion due to the effect of the COVID-19 pandemic. By this data, the 36 states and FCT have generated a total of N7.02 trillion as IGR in four years.
According to the data bureau, in 2022, Lagos State, Rivers State and the FCT generated the highest revenue with N651.15 billion, N172.82 billion and N124.37 billion respectively. The ICIR reports that this is 49.25 per cent of the total IGR in 2022.
Meanwhile, the lowest three performing states during the year were Kebbi, Taraba and Yobe with values of N9.15 billion, N10.24 billion and N10.46 billion respectively.
NBS also reported that the total revenue generated from taxes is N1.47 trillion while revenue from states’ Ministries, Departments and Agencies totalled N455.07 billion.
Analysts hinged this gradual revenue appreciation to improved taxation and digitisation of Nigeria’s tax processes.
“Yes, there is a gradual improvement in the revenue collection by states, it needs to reflect more in the improvement of livelihood of people in the states. We still have overarching poverty in states. There is also concern of overreliance from the federation allocation sharing as most states still struggle to pay salaries and meet up with other key projects,” a development economist, Celestine Okeke told The ICIR.
Meanwhile, a recent ranking by BudgIT, a civic organisation, placed Rivers, Lagos and Eboyi states above the 36 states on fiscal performance in 2023.
The ICIR also reported that 13 out of the 36 states in Nigeria implemented 80 per cent of their budgets for the 2022 fiscal year.
List of Taxes | Amount generated in 2022 (N) |
PAYE | 994,404,455,858.06 |
Direct Assessment | 52,349,772,646.64 |
Road taxes | 24,571,134,250.52 |
Stamp duties | 27,125,210,397.53 |
Capital gain tax | 3,521,439,973.77 |
Withholding tax | 139,906,092,599.43 |
Other taxes | 179,952,121,959.25 |
LGA revenue | 48,710,221,775.27 |
MDAs revenue | 455,072,177,190.29 |
Total | 1,925,612,626,650.76 |
Kehinde Ogunyale tells stories by using data to hold power into account. You can send him a mail at jameskennyogunyale@gmail or Twitter: Prof_KennyJames | LinkedIn: Kehinde Ogunyale
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.