Nigerians contributed N40.14 billion in road taxes to state governments in 2023, reflecting a 63.36% increase from the N24.57 billion collected in 2022, according to the National Bureau of Statistics (NBS). The data highlights road taxes’ growing importance in states’ internally generated revenue. Lagos State, the economic hub of Nigeria, emerged as the top contributor, collecting N16.74 billion, accounting for 41.7% of the total. The state, which reported zero road tax revenue in 2022, became a major driver of the increase, while Ebonyi State showed an impressive 3,804% rise in collections.
Other states also posted significant growth in road tax collections. Rivers State’s revenue surged by 270.66%, collecting N830.01 million, and Sokoto State saw a 41.22% rise to N194.66 million. Yobe State registered a 30.4% increase to N81.88 million. The increased collections reflect enhanced state-level tax administration and potentially rising compliance, especially in key economic areas.
Conversely, some states experienced steep declines. Enugu State reported a 95.12% decrease to N53.47 million, and Katsina saw a 79.34% drop to N29.3 million. Niger and Cross River states also faced significant reductions, with the latter’s collections falling 62.54% to N1.22 billion. Meanwhile, the Federal Capital Territory reported no road tax revenue in 2023, raising questions about its tax policies despite its administrative role.
