The 36 states of the federation and the Federal Capital Territory Abuja generated N2.43 trillion as Internally Generated Revenue (IGR) in 2023, representing an increase of 26.03 percent over N1.93 trillion realised by the same units in 2022, the National Bureau of Statistics (NBS) revealed on Monday.
IGR is one of the many sources of funding to state governments and shows the extent to which they can survive in the absence of the monthly allocations from Abuja.
By IGR components, Pay As You Earn (PAYE) accounted for the bulk of the 2023 IGR, as the 36 states and Abuja generated N1.24 trillion from PAYE, representing 51.3 percent of the 2023 IGR. The states realised N57.4 billion from direct assessment; N40.1 billion from road taxes; N30.3 billion from stamp duties; N5.91 billion from capital gain tax, and N227.9 billion from withholding tax.
Other sources include other taxes, N306.2 billion; LGA revenue, N37.1 billion and MDA revenue, N478.01 billion.
“This report highlights the Internally Generated Revenue (IGR) in 2023 for the 36 States and the FCT. It has two (2) broad categories of revenues: Taxes, Ministries, Departments and Agencies (MDAs) revenue. Taxes include PAYE, Direct assessment, Road taxes, Stamp duties, Capital gain tax, withholding tax, other taxes and LGAs revenue,” the NBS announced on Monday.
The revenue generated through taxes amounted to N1.95 trillion while MDA revenue amounted to N478.01 billion, thus bringing the 2023 IGR to N2.43 trillion.
On a year-on-year basis, Ebonyi State in south east Nigeria grew its IGR the most among the 36 states and FCT in 2023. With 148.2 percent annual growth, Ebonyi State’s IGR rose from N12.42 billion in 2022 to N30.84 billion in 2023. It was followed by Katsina State in the north west, which grew its IGR from N13.05 billion in 2022 to N26.96 billion in 2023. The third most performing state in terms of IGR growth is Ekiti in south west which recorded an annul growth of 88.47 percent as its IGR rose from N17.03 billion in 2022 to N32.09 billion in 2023.
Fourth on the ranking is the nation’s capital, Abuja, with an annual growth of 69.74 percent as its IGR rose from N124.37 billion in 2022 to N211.1 billion in 2023.
Kwara State grew its IGR by 66.80 percent from N35.76 billion in 2022 to N59.64 billion in 2023. Plateau State in north central grew its IGR by 62.27 percent from N15.93 billion in 2022 to N25.84 billion in 2023. Cross River’s IGR rose by 49.58 percent from N21.09 billion in 2022 to N31.56 billion in 2023. Kogi’s IGR increased by 47.03 percent from N18.21 billion in 2022 to N26.78 billion in2023.
Edo State’s IGR rose by 36.27 percent from N47.46 billion in 2022 to N64.67 billion in 2023 while Jigawa increased its IGR by 34 percent from N20.55 billion in 2022 to N27.54 billion in 2023.
On the contrary, four states witnessed a decline in their IGR. Anambra State’s IGR declined by 1.5 percent to N33.46 billion in 2023 from N33.97 billion in 2022. Kano State’s IGR fell by 12.07 percent from N42.51 billion in 2022 to N37.38 billion in 2023. Oyo State’s IGR declined by 15.26 percent to N52.75 billion in 2023 down from N62.25 billion in 2022 just as Sokoto’s IGR fell the most, by 23.95 percent from N23.62 billion in 2022 to N17.96 billion in 2023.
