The 36 states and the Federal Capital Territory (FCT) in Nigeria generated a combined ₦5.15 trillion in internally generated revenue (IGR) during 2025, according to the National Bureau of Statistics (NBS). This figure represents a 40.93 per cent increase from the ₦3.65 trillion recorded in 2024. The NBS 2025 Internally Generated Revenue at State Level report, released on Thursday, showed that Lagos State accounted for ₦1.77 trillion of the total revenue generated by states and the FCT, representing about 34.4 per cent of the combined IGR.
Lagos State's revenue was higher than the combined ₦909.35 billion generated by 22 states during the same period. The state's IGR was ₦1.77 trillion, with ₦1.48 trillion generated from taxes and ₦292.64 billion from Ministries, Departments and Agencies (MDAs). The NBS report highlighted that taxation remained the major source of internally generated revenue across the states and the FCT, with ₦3.79 trillion, representing 73.64 per cent, coming from tax revenue.
Rivers State ranked second with ₦428.42 billion in IGR, comprising ₦414.38 billion from tax revenue and ₦14.03 billion from MDAs. Enugu State came third with ₦406.77 billion, but with a large portion of its revenue coming from MDAs, ₦355.25 billion, while tax revenue accounted for ₦51.52 billion. Other states among the highest revenue generators included Delta with ₦202.49 billion, Edo with ₦132.21 billion, Oyo with ₦103.25 billion, Kano with ₦102.26 billion and Akwa Ibom with ₦100.80 billion.
At the bottom of the ranking, Yobe recorded the lowest IGR at ₦16.01 billion, followed by Ebonyi with ₦17.18 billion and Sokoto with ₦20.48 billion. The NBS data provides a state-by-state breakdown of internally generated revenue from taxation and other sources during the 2025 financial year. The report also listed various sources of tax revenue, including Pay-As-You-Earn (PAYE) tax, which accounted for the largest share of tax revenue, generating ₦2.64 trillion.
Pay-As-You-Earn (PAYE) tax accounted for 69.51 per cent of total tax revenue, while withholding tax contributed ₦503.46 billion and other taxes accounted for ₦300.21 billion. The report also listed direct assessment at ₦112.65 billion, stamp duties at ₦111.57 billion, road taxes at ₦49.88 billion and capital gains tax at ₦12.40 billion. These figures demonstrate the diversity of revenue sources across the states.
The NBS report showed that there were differences in revenue structures among top-performing states. While Lagos and Rivers States generated most of their revenue from taxes, Enugu State's revenue structure was different, with a significant portion coming from MDAs. This highlights the need for states to diversify their revenue sources and develop strategies to boost IGR.
The National Bureau of Statistics (NBS) releases this report to provide insights into the IGR performance of states and the FCT. The data can be used to inform policy decisions and support economic development initiatives. By analyzing the revenue structures and performance of states, policymakers can identify areas for improvement and develop strategies to enhance IGR.
Key points
- Lagos State generated ₦1.77 trillion in IGR in 2025, accounting for 34.4 per cent of the combined IGR of all states and the FCT.
- The 36 states and the FCT generated a combined ₦5.15 trillion in IGR during 2025, representing a 40.93 per cent increase from 2024.
- Taxation remained the major source of internally generated revenue across the states and the FCT, accounting for 73.64 per cent of total IGR.
