The total Internally Generated Revenue (IGR) of states in Nigeria saw a slight rise to N1.93 trillion in 2022. This reflects a modest increase of 1.57% compared to the N1.89 trillion recorded in 2021. Leading the pack were Lagos, Rivers, and the Federal Capital Territory (FCT), while Kebbi, Taraba, Yobe, Ebonyi, and Katsina were among the states with the lowest IGR.
Top Five States in IGR:
- Lagos: N651.15 billion
- Rivers: N172.82 billion
- FCT: N124.37 billion
- Ogun: N120.58 billion
- Delta: N85.90 billion
Bottom Five States in IGR:
- Kebbi: N9.15 billion
- Taraba: N10.24 billion
- Yobe: N10.46 billion
- Ebonyi: N12.43 billion
- Katsina: N13.06 billion
Sources of IGR: The 2022 IGR figures for states primarily relied on two major revenue sources: taxes and revenue from Ministries, Departments, and Agencies (MDAs). Under the taxes sub-category, various types of taxes contributed, including Pay As You Earn (PAYE), direct assessment, road taxes, stamp duties, capital gain tax, withholding taxes, other taxes, and Local Government Areas (LGAs) revenue.
Key Tax Contributions:
- PAYE accounted for the largest share (67.62%) of the total tax-generated revenues nationwide.
- Capital gains tax had the smallest share, contributing only 0.24% to total tax revenue.
Leading States in LGA Revenue:
- Oyo: N11.83 billion
- Lagos: N11.51 billion
- Jigawa: N8.70 billion
Total PAYE and Other Taxes:
- PAYE: N994.41 billion
- Direct assessment tax: N52.35 billion
- Road taxes: N24.57 billion
- Stamp duties: N27.13 billion
- Capital gain tax: N3.52 billion
- Withholding tax: N139.91 billion
- Other taxes: N179.95 billion
- LGA revenue: N48.71 billion
- MDAs revenue: N455.07 billion
Reliance on Federal Allocation and Borrowing:
- States continued to heavily rely on allocations from the Federal Government in 2022, with total FAAC allocation to states (excluding the FCT) at N3.16 trillion—63.73% more than the total IGR for the year.
- States domestically borrowed N870 billion in 2022 to supplement their expenses.
Foreign Investment Attraction:
- Only 11 states, along with the FCT, managed to attract foreign investors in 2022, highlighting disparities in investment opportunities across states.