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[BUSINESS] · Nigeria · 2 sources

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Part of situation: Nigeria subnational revenue and debt trends (6 clusters)

Nigeria states and FCT collect N2.64 trillion in PAYE taxes

PAYE tax tax revenue minimum wage National Bureau of Statistics state government revenue

Nigeria’s 36 states and the Federal Capital Territory (FCT) collected N2.64 trillion in Pay-As-You-Earn (PAYE) taxes in 2025, marking a 40.3% increase from N1.88 trillion in 2024. According to data from the National Bureau of Statistics (NBS), PAYE accounted for 69.5% of the N3.79 trillion in total tax revenue generated by states and the FCT during the year.

Total tax revenue collected by states rose by 41.2% to N3.79 trillion, up from N2.69 trillion the previous year. This growth is attributed to increased tax collections following salary adjustments and the implementation of a N70,000 minimum wage.

Other revenue components included withholding tax, which contributed approximately N503 billion (13.28% of total revenue), and Direct Assessment, which rose 29.4% to N112.65 billion. State governments view Direct Assessment as a significant potential income source, particularly from entrepreneurs and high-net-worth individuals.

Entities

National Bureau of Statistics · Nigeria

Sources

States, FCT Collect N2. 64trn Taxes from Workers - Economi Confidential [economicconfidential.com]
States, FCT collect N2. 64 trillion taxes from workers as PAYE jumps 40. 3% [nairametrics.com]