TOLU JOHNSON
The 36 states of the federation and the Federal Capital Territory (FCT) generated N5.15 trillion in internally generated revenue (IGR) in 2025 — up 41 percent from N3.65 trillion recorded in 2024.
The figures, obtained from the National Bureau of Statistics (NBS) report, show that the states generated an additional N1.5 trillion in IGR during the year.
The N2.64 trillion generated from PAYE accounted for 51 percent of the total IGR recorded by the states and the FCT in 2025.
According to the NBS data, revenue from ministries, departments and agencies (MDAs) followed, increasing from N968.16 billion in 2024 to N1.36 trillion in 2025.
Together, PAYE and MDAs revenue accounted for about 78 percent of the total IGR generated during the year.
The data body said Lagos recorded the biggest IGR at N1.77 trillion in 2025, representing about 34 percent of the total revenue generated by all 36 states and the FCT.
The south-western state was followed by Rivers (N428.4 billion), Enugu (N406.8 billion), FCT (N356.3 billion) and Ogun (N252.4 billion).
Yobe, on the flip side, generated the least IGR at N16 billion, the report said, noting that Ebonyi trailed with N17.2 billion, while Sokoto and Taraba recorded revenues of N20.5 billion and N28.2 billion, respectively.
The increase in PAYE was one of the biggest movements in the revenue figures.
States and the FCT generated N757.3 billion more from PAYE in 2025 than they did in 2024, representing a 40 percent increase.
The MDAs revenue also rose by N389 billion, from N968.2 billion to N1.36 trillion.
Combined, the two sources accounted for more than three-quarters of the N1.5 trillion increase in total IGR between the two years.
Other major revenue sources also recorded increases. Withholding tax rose from N391.6 billion to N503.5 billion, while direct assessment increased from N87.1 billion to N112.6 billion.
Other taxes climbed from N201.6 billion to N300.2 billion, while LGA revenue increased from N39.4 billion to N65.8 billion.
According to TheCable Index analysis, some of the fastest growth came from smaller revenue categories.
For instance, stamp duty receipts more than doubled, rising 112 percent from N52.6 billion in 2024 to N111.6 billion in 2025.
The report also showed that road-tax revenue more than doubled, increasing 109 percent from N23.9 billion to N49.9 billion.
However, capital gains tax reportedly recorded the smallest increase among the listed major revenue streams, rising 17 percent from N10.6 billion to N12.4 billion.
Despite the sharp percentage increases in stamp duties and road taxes, their combined increase was about N84.9 billion — a fraction of the N757.3 billion increase recorded in PAYE.
Lagos’ N1.77 trillion IGR was more than the combined N1.44 trillion generated by Rivers, Enugu, FCT and Ogun.
The state also accounted for more than half of the total PAYE collected across the states and the FCT.
Lagos generated N993.3 billion from PAYE in 2025, compared with N359.2 billion raked in by Rivers and the N320.1 billion the FCT recorded.
However, the revenue structure varied considerably from one jurisdiction to another. In Enugu, for example, the MDAs’ revenue stood at N355.3 billion, compared with N25.3 billion from PAYE
