…Edo third best state in south-south
…as MDAs disappoint in Lagos
Improvement in the security situation in Imo State in south east geopolitical zone of the country paid off in 2022 as its Internally Generated Revenue (IGR) rose significantly last year, making it the state with the highest growth rate in internal revenue collection in the country.
Imo State’s IGR rose by 51.7 percent to N19.34 billion in 2022 from N12.75 billion in 2021 acccording to the latest IGR data released by the National Bureau of Statistics (NBS).
Bauchi State, in the north east geopolitical zone, was the second most improved state in terms of IGR collection rate which rose by 42.3 percent to N25.47 billion in 2022 from N17.90 billion in the previous year.
Oil-rich Rivers State, in the south-south geopolitical zone, posted 40.1 percent increase in its IGR that increased to N172.82 billion in 2022 from N123.34 billion in 2021.
“The 36 states and the FCT generated a total sum of N1,925,612,626,650.76 as IGR in 2022. This grew by 1.57% compared to N1,895,786,762,263.80 in 2021. PAYE was the most contributing revenue source during the year, recorded 67.62% share to the total tax generated revenues nationwide. While capital gains tax was the least in the year under review with 0.24% share to total tax revenue,” NBS said yesterday.
Kwara State grew its IGR by 32.6 percent to N35.76 billion in 2022, up from N26.96 billion in 2021, thus occupied the fourth position when ranked by the growth rate in IGR. Gombe State, also in the north east, was ranked fifth as it generated N13.6 billion in 2022 as against N10.56 billion in 2021, amounting to an increase of 28.7 percent, thus completed the list of the top five states with the highest growth rates in IGR in 2022.
The least performing states in terms of the growth rates are Cross River, Ebonyi, Lagos, Kogi and Plateau. Cross River experienced 7.9 percent decline in IGR which fell to N21.1 billon in 2022, down from N22.91 billion in 2021. Ebonyi State’s IGR fell by 9.6 percent to N12.43 billion last year as against N13.75 billion in 2021.
Lagos State’s IGR declined by 13.6 percent to N651.15 billion in 2022 compared to N753.46 billion in the previous year. Kogi State’s IGR declined by 22.2 percent to N18.21 billion in 2022 as against N23.41 billon in 2021, while Plateau State’s IGR recorded the worst performance as it fell by 25.7 percent to N15.93 billion, down from N21.42 billion in 2021.
When ranked by how much each state generated as IGR, Lagos State, Nigeria’s commercial capital remained unchallenged as its IGR of 2022 which was N651.15 billion amounted to 33.8 percent of the total IGR of N1.93 trillion generated by the 36 states and Abuja.
Further analysis showed that Lagos State’s IGR was equivalent to the revenue generated by all the states in the north central, north west, south east and north east put together. The breakdown shows that Lagos generated N524.87 billion from taxes while N126.27 billion was generated through Ministries, Departments and Agencies (MDAs).
Meanwhile, in 2021, Lagos State generated N405.08 billion from taxes while N348.39 billion was realised from MDAs, implying that while taxes rose by 29.6 billion on an annual basis, MDAs revenue fell by 63.8 percent during the same period.
Rivers State was second with N172.82 billion as 2022 IGR comprising N153.56 billion from taxes and N19.26 billion from MDAs. Abuja, the Federal Capital Territory was third with N12.37 billion as its total IGR IN 2022, with all generated from taxes.
Ogun State, the nation’s manufacturing base, generated N120.58 billion as IGR in 2022, consisting of N55.31 billion from taxes and N67.27 billion as MDAs revenue. The oil-rich Delta State made N85.9 billion as IGR in 2022, comprising N71.50 billion as taxes and N14.41 billion as MDAs revenue.
With Lagos State, the south west geopolitical zone leads the IGR chart with N908.25 billon IGR in 2022 as against N972.60 billion in 2021. If Lagos State is excluded, the south west will have a cumulative IGR of N257.11 billion in 2022 in contrast to N219.13 billion in 2021.
The south-south geopolitical zone generated N377.99 billion as IGR in 2022 compared to N313.56 billion in 2021. The north-central generated N246.43 billion IGR in 2022 as against N253.22 billion in 2021.
North west realised N186.40 billion IGR in 2022 compared to N174.39 billion in 2021.
The south-east realised N114.53 billion IGR in 2022 compared to N103.72 billion in the previous year while the north east geopolitical zone generated N92 billion IGR last year as against N78.30 billion in 2021.
