Nigerian States Revenue Update, The Nigerian Economic Summit Group
Jul 2019

Nigerian States Revenue Update

Internally Generated Revenue (IGR) grew by 25% in 2018 but accounted for 31% of total States Revenue According to data released by the National Bureau of Statistics (NBS), the 36 Nigerian States and the FCT generated a total revenue of N3.7 trillion in 2018. This represents a 40% increase from N2.7 trillion generated in 2017. (IGR), a component of total States Revenue was N1.17 trillion in 2018, an increase of 25% from N936.5 billion in 2017. IGR represented 31% of total States Revenue, while the other component- net Federal Account Allocation Committee (FAAC) Allocation had a share of 69% (N2.6 trillion). On the composition of IGR, Pay As You Earn (PAYE) accounted for 57% of total IGR across states; Direct Assessment had a share of 4%; Road and Other Taxes – 16% and MDAs & Other Revenue – 23%.

Ondo, Bauchi, Imo and Sokoto more than doubled their IGR in 2018 The top five states with fast growing IGR include: Ondo (127% growth), Bauchi (122%), Imo (117%), Sokoto (108%) and Niger (60%). Improvements in many of these states were as a result of reforms such as automation of the tax payment process, stakeholder’s sensitisation about the tax process, introduction of new levies, appointment of new heads of the revenue agencies, etc. The bottom states include Osun with a decline of 11.5%, Benue (-9.5%), Cross River (-3.1%), Adamawa (0.1%) and Enugu (0.5%). IGR expanded in Rivers and Lagos by 26% and 14.4% respectively.

Within the last four years, IGR has grown across the six geopolitical regions of the country. The North Central led the IGR growth at 212% from 2014 to 2018, followed by the North West (136%) led by Sokoto, Kano and Kaduna and the North East (63%). IGR in the South West grew by 60% in the period, led by Ogun and Ondo States. In the South South, IGR grew by 33% with significant contributions (in terms of growth) from Edo and Akwa-Ibom States. IGR grew by 26% in the South East. Anambra and Imo experienced the highest growth in the region, within the four-year period.

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