States, FCT hit N5.15trn IGR in 2025 as PAYE revenue rises to N2.64trn

NIGERIA’S 36 states and the Federal Capital Territory (FCT) generated a combined N5.15 trillion in internally generated revenue (IGR) in 2025, up 41 percent from N3.65 trillion recorded in 2024.

Data from the National Bureau of Statistics (NBS) showed that the jurisdictions increased their IGR by N1.5 trillion year-on-year.

Pay-as-you-earn (PAYE) remained the largest contributor, rising 40 percent from N1.88 trillion in 2024 to N2.64 trillion in 2025.

The figure accounted for 51 percent of the total IGR generated by the states and FCT during the year. Revenue from ministries, departments and agencies (MDAs) ranked second, increasing from N968.16 billion in 2024 to N1.36 trillion in 2025.

Together, PAYE and MDAs revenue contributed about 78 percent of the total IGR recorded in 2025.

Lagos records highest IGR

Lagos generated the highest IGR among the states and FCT, recording N1.77 trillion in 2025. The figure represented about 34 percent of the N5.15 trillion combined revenue generated during the year.

Rivers followed with N428.4 billion, while Enugu generated N406.8 billion. The FCT recorded N356.3 billion and Ogun generated N252.4 billion.

Yobe recorded the lowest IGR at N16 billion, followed by Ebonyi with N17.2 billion. Sokoto and Taraba generated N20.5 billion and N28.2 billion, respectively.

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PAYE accounts for largest increase

PAYE revenue recorded one of the biggest increases during the year, rising by N757.3 billion between 2024 and 2025.

MDAs revenue also increased by N389 billion over the same period. Combined, the two sources accounted for more than three-quarters of the N1.5 trillion increase in total IGR.

Other revenue streams also recorded growth. Withholding tax increased from N391.6 billion to N503.5 billion, while direct assessment rose from N87.1 billion to N112.6 billion.

Other taxes increased from N201.6 billion to N300.2 billion, while revenue from local government areas rose from N39.4 billion to N65.8 billion.

Stamp duties, road taxes record sharp growth

Some smaller revenue categories recorded higher percentage increases during the year. Stamp duty receipts more than doubled, rising 112 percent from N52.6 billion in 2024 to N111.6 billion in 2025.

Road-tax revenue also increased by 109 percent, climbing from N23.9 billion to N49.9 billion. Capital gains tax recorded a comparatively smaller increase of 17 percent, rising from N10.6 billion to N12.4 billion.

Despite their high percentage growth, stamp duties and road taxes added about N84.9 billion combined — far below the N757.3 billion increase recorded in PAYE.

Lagos revenue exceeds four other top performers combined

Lagos’ N1.77 trillion IGR was higher than the combined N1.44 trillion generated by Rivers, Enugu, the FCT and Ogun.

The state also accounted for more than half of the total PAYE revenue generated across the states and FCT. Lagos collected N993.3 billion in PAYE in 2025, compared with N359.2 billion in Rivers and N320.1 billion in the FCT.

However, the composition of internally generated revenue differed considerably across jurisdictions.

In Enugu, MDAs revenue stood at N355.3 billion, compared with N25.3 billion from PAYE. Ogun also generated more from MDAs than PAYE, recording N141.1 billion and N73.7 billion, respectively.

In Lagos, the pattern was different. PAYE revenue of N993.3 billion was more than three times the N292.6 billion generated from MDAs.

The 2025 figures show that IGR increased substantially across Nigeria’s states and the FCT, with the bulk of the growth coming from a few major revenue sources.

PAYE remained the dominant contributor, accounting for more than half of the N5.15 trillion collected, while the N757.3 billion increase in PAYE represented the largest single addition to internally generated revenue during the year.