Nigerian States Eye Massive N5.15 Trillion Revenue Surge by 2025, NBS Report Reveals

The 36 states of Nigeria and the Federal Capital Territory (FCT) collectively generated N5.15 trillion in Internally Generated Revenue (IGR) in 2025, as reported by the National Bureau of Statistics (NBS). This figure signifies a substantial increase of 40.93 percent from the N3.65 trillion recorded in 2024, according to the latest NBS data contained in its 2025 Internally Generated Revenue at State Level report.

Lagos State maintained its leading position as the largest contributor to the combined IGR, generating an impressive N1.77 trillion in 2025. This amount accounts for approximately 34 percent of the total IGR across all states and the FCT, and represents a significant rise from its N1.26 trillion in 2024, marking about a 40 percent year-on-year growth. Following Lagos, other significant contributors included Rivers State with N428.42 billion (up from N317.30 billion in 2024), Enugu State with ₦406.77 billion, the FCT with N356.34 billion (an increase from ₦282.36 billion in 2024), and Ogun State with ₦252.36 billion (compared to ₦194.93 billion the previous year).

A notable highlight in the 2025 figures is Enugu State's remarkable revenue growth. Its IGR more than doubled from ₦180.50 billion in 2024 to ₦406.77 billion in 2025, an increase of approximately 125 percent. The Enugu State Internal Revenue Service attributed this surge to enhanced revenue collection efforts, with non-tax revenue contributing significantly, accounting for ₦355.25 billion or 87.4 percent of the state’s total IGR. Tax revenue for Enugu stood at ₦51.52 billion in 2025, up from ₦30 billion in 2024, placing Enugu among the states with the largest IGR increases in the latest reporting period.

The NBS categorizes IGR into two primary sources: tax revenue and revenue generated by Ministries, Departments and Agencies (MDAs). Tax revenue encompasses various components such as Pay As You Earn (PAYE), direct assessment, road taxes, stamp duties, capital gains tax, withholding tax, other taxes, and revenue collected through local government areas.

For context, the NBS’s 2024 report indicated that the 36 states and the FCT collectively generated ₦3.63 trillion, which was a 49.7 percent increase from ₦2.43 trillion in 2023. In 2024, Lagos alone contributed ₦1.26 trillion, followed by Rivers with ₦317.30 billion and the FCT with ₦282.36 billion. Ogun and Enugu recorded ₦194.93 billion and ₦180.50 billion, respectively. During 2024, tax revenue constituted about 73.35 percent of the national total IGR, with PAYE alone contributing ₦1.86 trillion, or 69.84 percent of the total tax revenue.

Despite the encouraging rise in IGR, Nigerian states continue to face significant fiscal challenges, with many still heavily reliant on allocations from the Federation Account to finance their budgets. Analyses in 2025 revealed that more than 20 states almost entirely depended on federal allocations for their operations. Lagos State, however, demonstrated the highest proportion of internally generated revenue within its overall revenue structure, while a significant number of states derived over 90 percent of their anticipated revenue from federal sources. Further reports indicated that in 2024, out of 35 states reporting combined revenue of N17.2 trillion, 29 states relied on Federation Account allocations for at least half of their income.