LAGOS, NIGERIA — The combined Internally Generated Revenue (IGR) of Nigerian states surged by 34% to hit ₦2.43 trillion, reflecting aggressive local revenue mobilization strategies by subnational governments across the federation.
Despite persistent macroeconomic headwinds and reduced purchasing power for households, state revenue agencies expanded tax bases, digitalized revenue collection, and tightened administrative compliance to drive the sharp increase.
Key Financial Highlights
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Lagos Maintains Dominance: Lagos State once again led all subnationals by a wide margin, accounting for more than half of the total revenue generated across the country.
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Top Performing States: Industrial and commercial hubs including Ogun, Enugu, Kano, and Oyo recorded sustained growth in tax collections, driven primarily by Pay-As-You-Earn (PAYE) taxes, land use charges, and business licensing fees.
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Fiscal Contrast: While nominal revenue figures set new records, economic analysts note that ongoing domestic inflation and high operating costs continue to pressure the real purchasing power of these expanded budgets.
