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6 clusters · 16 sources · 20 days · First seen · Last updated

Nigeria subnational revenue and debt trends

Overview

In 2025, Nigeria’s 36 states and the Federal Capital Territory (FCT) generated N5.15 trillion in internally generated revenue (IGR), a 40.93 percent increase from 2024. Tax revenue accounted for N3.79 trillion, with Pay As You Earn (PAYE) tax serving as the primary driver. Lagos State remained a leading contributor, generating N1.77 trillion. While aggregate state IGR grew by 55 percent between 2023 and 2025 due to improved tax administration and digital automation, most states remain heavily dependent on federal allocations. A World Bank report indicates that on average, state IGR covered only about 50 percent of recurrent spending in 2024 and 2025. Only Lagos and Enugu states generated enough IGR to cover their recurrent expenditures in 2025. Notably, Enugu recorded a significant increase in IGR, growing from N25 billion to N209 billion, representing a 732 percent increase in real terms, with a ratio of 377 percent of its recurrent spending. Fiscal challenges persist as at least 30 states and the FCT reported domestic debt stocks exceeding 50 percent of their annual IGR. Road tax revenue, defined as daily levies from commercial transporters, totaled N113.94 billion between 2023 and 2025. Lagos contributed N33.61 billion of this total, or approximately 29.5 percent. Outside of Lagos, Delta State recorded the highest collections at N8.64 billion, followed by Ondo, Ogun, Edo, and Cross River. Detailed data from the National Bureau of Statistics (NBS) shows that PAYE taxes specifically reached N2.64 trillion in 2025, a 40.3 percent increase from N1.88 trillion in 2024. This PAYE collection accounted for 69.5 percent of the N3.79 trillion in total state and FCT tax revenue. This growth is attributed to salary adjustments and the implementation of a N70,000 minimum wage.

Entities

National Bureau of Statistics · Lagos State · Nigeria · Rivers State · Enugu State

Timeline

  1. [BUSINESS] 2 sources
    Nigeria states and FCT collect N2.64 trillion in PAYE taxes

    Nigeria’s states and the FCT collected N2.64 trillion in PAYE taxes in 2025, a 40.3% increase driven by new minimum wage adjustments and rising salaries.

  2. [BUSINESS] 2 sources
    World Bank: Lagos and Enugu lead Nigerian states in revenue generation

    The World Bank reports that only Lagos and Enugu states in Nigeria generated enough internally generated revenue to cover their 2025 recurrent expenditures, highlighting a broad fiscal dependence on federal aid

  3. [BUSINESS] 2 sources
    Nigeria states generate N114bn in road taxes over three years

    Nigeria’s 36 states collected N113.94bn in road taxes from 2023 to 2025, with Lagos accounting for nearly 30 per cent of the total despite missing 2024 data.

  4. [BUSINESS] 2 sources
    Nigeria states face high debt-to-revenue ratios in 2025

    In 2025, 31 Nigerian states and the FCT recorded domestic debt exceeding 50% of their annual internally generated revenue, while Jigawa, Ondo, and Anambra maintained the lowest debt-to-IGR ratios.

  5. [BUSINESS] 8 sources
    Lagos leads Nigerian states as IGR rises to N5.15tn

    Nigeria's states and FCT generated N5.15tn in 2025, a 40.93% increase from 2024. Lagos led with N1.77tn, while PAYE tax remained the largest revenue source at N2.64tn.

  6. [BUSINESS] 6 sources
    Lagos State leads Nigeria in 2025 revenue with N1.77 trillion

    Lagos State generated N1.77 trillion in 2025, accounting for over 34% of Nigeria’s total subnational internally generated revenue and outperforming 22 other states combined.

Sources

arise.tv · bizwatchnigeria.ng · businessday.ng · chronicle.ng · dailyreport.ng · economicconfidential.com · iroyinyorubatv.com.ng · nairametrics.com · nationalaccordnewspaper.com · nationaldailyng.com · punchng.com · tgnews.com.ng · thewhistler.ng · thisdaylive.com · tribuneonlineng.com · zalebs.com

This summary has been updated 4 times: see revision history