Reported by Ariajegbe Sylvia Esezobor
Lagos State generated N1.77 trillion in Internally Generated Revenue in 2025, more than the combined N909.35 billion generated by 22 other states, according to the National Bureau of Statistics’ 2025 Internally Generated Revenue Report published on Thursday. The figure represents more than a third of the N5.15 trillion generated by all 36 states and the Federal Capital Territory, underscoring Lagos’s dominance of Nigeria’s subnational revenue landscape.
The NBS report showed that the 36 states and the FCT collectively generated N5.15 trillion in 2025, a 40.93 per cent increase from the N3.65 trillion recorded in 2024. Lagos’s N1.77 trillion was the highest revenue recorded by any state or the FCT during the year, followed by Rivers State with N428.42 billion and Enugu State with N406.77 billion. The Federal Capital Territory ranked fourth with N356.34 billion, while Ogun State recorded N252.36 billion to rank fifth. Delta State followed with N202.49 billion, Edo with N132.21 billion, Oyo with N103.25 billion, Kano with N102.26 billion and Akwa Ibom with N100.80 billion.
The 22 states ranked below the top 15 jurisdictions collectively generated N909.35 billion, meaning Lagos’s N1.77 trillion was about N859.85 billion higher than their combined revenue. Those 22 states ranged from Katsina, which generated N64.29 billion, to Yobe, which recorded N16.01 billion, the lowest of any jurisdiction. Ebonyi followed with N17.18 billion, Sokoto with N20.48 billion, Taraba with N28.16 billion and Benue with N29.57 billion. Zamfara recorded N30.07 billion, Kebbi N31.23 billion, Nasarawa N32.57 billion, Adamawa N33.76 billion and Borno N36.36 billion. Imo generated N43.65 billion, Kogi N43.94 billion, Gombe N43.96 billion, Plateau N45.10 billion, Bayelsa N50.30 billion and Bauchi N52.79 billion. Osun recorded N56.84 billion, Anambra N57.03 billion, Ekiti N57.09 billion, Cross River N58.64 billion and Ondo N60.32 billion.
The NBS report showed that tax revenue accounted for N3.79 trillion of the total revenue generated by the 36 states and the FCT, while N1.36 trillion came from Ministries, Departments and Agencies. Pay-As-You-Earn accounted for N2.64 trillion of the tax revenue, followed by withholding tax at N503.46 billion and other taxes at N300.21 billion. Direct assessment generated N112.65 billion, stamp duties N111.57 billion, road taxes N49.88 billion and capital gains tax N12.40 billion.
The scale of Lagos’s revenue performance reflects its status as Nigeria’s commercial capital and the concentration of corporate headquarters, financial institutions and a large formal sector within its borders. The state’s IGR of N1.77 trillion in 2025 compares with N1.26 trillion in 2024, representing a growth of more than 40 per cent. Rivers State’s N428.42 billion was up from N317.30 billion the previous year, while Enugu climbed to third place with N406.77 billion, rising from N282.36 billion. Enugu’s performance has been particularly notable, with the state recording the fastest growth in IGR over the three-year period from 2022 to 2025, surging from N25.12 billion to N406.77 billion. BudgIT’s State of States 2025 report highlighted Enugu’s revenue trajectory, noting that the state’s IGR growth outpaces that of larger economies.
The 40.93 per cent increase in aggregate subnational IGR between 2024 and 2025 reflects both improved tax administration and the impact of macroeconomic conditions, including inflation and exchange rate movements that have expanded the nominal value of economic transactions. The NBS report did not adjust for inflation, meaning that part of the growth reflects price increases rather than real increases in revenue mobilisation. Nevertheless, the expansion of the tax base and improvements in collection efficiency in several states contributed to the overall increase.
The disparity between Lagos and the rest of the federation remains stark. Lagos alone generated 34.4 per cent of the total subnational IGR in 2025, while the 22 lowest-performing states combined generated only 17.7 per cent. The concentration of revenue capacity in a handful of states has significant implications for fiscal federalism and the sustainability of state finances. Many of the lowest-performing states remain heavily dependent on allocations from the Federation Account to fund recurrent expenditure, leaving them vulnerable to fluctuations in oil prices and the volatility of the naira. The NBS report showed that Yobe, Ebonyi and Sokoto, the three states with the lowest IGR, generated a combined N53.67 billion, less than the N64.29 billion generated by Katsina alone.
The report comes amid ongoing debates about state-level revenue generation and the impact of the Supreme Court’s 2024 judgment affirming the financial autonomy of local governments. With local government councils now entitled to direct allocations from the Federation Account, states have been under pressure to strengthen their own revenue streams and reduce reliance on federal transfers. The performance of states such as Lagos, Rivers and Enugu provides a template for revenue diversification, but the wide gap between the top performers and the rest suggests that most states have yet to develop the administrative capacity or economic base required to generate substantial internal revenue.
For Lagos, the N1.77 trillion figure reinforces its position as the economic engine of Nigeria and provides the fiscal foundation for its extensive infrastructure and social programmes. For the 22 states whose combined revenue was dwarfed by Lagos alone, the report is a reminder of the structural inequalities that define Nigeria’s fiscal landscape. As the 2027 general elections approach and debates over resource allocation intensify, the revenue performance of states will remain a central issue in the conversation about governance, accountability and the future of Nigeria’s federal system.
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