Nigeria’s states and the Federal Capital Territory generated a record N5.15 trillion in internally generated revenue in 2025, buoyed by stronger tax collections which accounted for nearly three-quarters of total IGR.
The 36 states and the Federal Capital Territory (FCT) generated a combined N5.15 trillion in Internally Generated Revenue (IGR) in 2025, representing a 40.93 percent increase from the N3.65 trillion recorded in 2024, according to the National Bureau of Statistics (NBS).
Lagos, Rivers and Enugu recorded the highest IGR during the period, generating N1.77 trillion, N428.42 billion and N406.77 billion respectively, the NBS said in its 2025 Internally Generated Revenue report.
Yobe, Ebonyi and Sokoto recorded the lowest revenues at N16.01 billion, N17.18 billion and N20.48 billion respectively.
The report said tax revenue and revenue generated by Ministries, Departments and Agencies (MDAs) constituted the two broad categories of IGR recorded by the states and FCT.
PAYE was the largest source of tax revenue, generating N2.64 trillion and accounting for 69.51 percent of total tax revenue collected during the year.
Capital gains tax was the least contributor at N12.40 billion, while tax revenue accounted for 73.64 percent of total IGR nationally.
The NBS report covers revenues generated by the 36 states and FCT, including PAYE, direct assessment, road taxes, stamp duties, capital gains tax, withholding taxes, other taxes and local government revenues.
It also covers revenue generated administratively by state Ministries, Departments and Agencies while providing various public services.
According to the NBS, the 40.93 percent increase in aggregate IGR from 2024 reflects higher internally generated revenue collections across the states, although the data shows significant disparities in revenue-generating capacity among the subnational governments.