Lagos and Rivers lead as Nigerian states generate N1.93tn in 2022 – NBS

Lagos and Rivers lead as Nigerian states generate N1.93tn in 2022 - NBS
Lagos and Rivers lead as Nigerian states generate N1.93tn in 2022 - NBS

New data from the National Bureau of Statistics (NBS) has revealed that the total Internally Generated Revenue (IGR) of states in Nigeria slightly increased to N1.93 trillion in 2022.

This represents a modest growth of 1.57 percent from the N1.89 trillion recorded in 2021.

Lagos, Rivers, and the Federal Capital Territory (FCT) emerged as the top revenue generators among the states, with IGR figures of N651.15 billion, N172.82 billion, and N124.37 billion, respectively.

Ogun and Delta followed closely with N120.58 billion and N85.90 billion, securing the fourth and fifth positions, respectively.

Conversely, Kebbi, Taraba, Yobe, Ebonyi, and Katsina were among the states at the lower end of the IGR rankings, with figures ranging from N9.15 billion to N13.06 billion.

The NBS report delineated two primary sources of revenue for the states’ IGR in 2022: taxes and income from Ministries, Departments, and Agencies (MDAs).

The tax sub-category encompassed various revenue sources such as Pay As You Earn (PAYE), direct assessment, road taxes, stamp duties, capital gains tax, withholding taxes, other taxes, and Local Government Areas’ (LGAs) revenue.

Among these, PAYE contributed significantly, accounting for 67.62 percent of the total tax-generated revenue nationwide.

In contrast, capital gains tax held the smallest share at 0.24 percent of the overall tax revenue.

The NBS further noted that Oyo, Lagos, and Jigawa states were the top three states reporting the highest LGA revenue in 2022, with respective figures of N11.83 billion, N11.51 billion, and N8.70 billion.

While the IGR showed some growth, Nigerian states still heavily relied on federal allocations in 2022.

Total disbursements from the Federation Account Allocation Committee (FAAC) to the states, excluding the FCT, amounted to N3.16 trillion.

This marked a substantial 63.73 percent increase over the total IGR of the states for the year.

States took on domestic borrowing amounting to N870 billion in 2022 to meet their financial needs.

Only 11 states, including the FCT, managed to attract foreign investment in 2022, while the remaining states missed out on investment opportunities.