In 2023, Nigeria’s Internally Generated Revenue (IGR) data revealed interesting insights into different states' financial performances. Despite economic hurdles, most states showed resilience, while others highlighted challenges.
Here’s a detailed look at the data:
Nationwide IGR growth with four exceptions
Only four states saw declines in their IGR — Anambra, Kano, Oyo, and Sokoto. In contrast, most Nigerian states reported increases, pointing to a broad improvement in internal revenue collection. This trend hints at possibly strengthened tax policies, better compliance, and new revenue-collection systems coming into play.
Lagos' unsurprising lead as Nigeria’s revenue giant
Lagos State remained the leader in IGR contributions, generating an impressive ₦815 billion. This amount makes up nearly a third of Nigeria’s IGR, underlining Lagos’ crucial role in the national economy. Lagos’ ability to maintain such a high revenue output comes from its diversified economy, covering trade, finance, and other services.
Ebonyi State: A standout performer
Ebonyi State held elections that saw David Umahi emerge victorious. Amidst this political event, the state achieved a remarkable 148.2% increase in its internally generated revenue compared to the previous year, marking the highest growth rate among Nigerian states. This leap, while from a smaller base, highlights Ebonyi’s strategic efforts to expand its revenue.
Notable declines in Sokoto and Oyo
On the other end of the spectrum, Sokoto, Oyo, and Kano experienced the largest declines, with IGRs falling by -24%, -15%, and -12%, respectively. These drops raise questions about challenges in revenue collection or shifts in economic activity in these states. The declines suggest potential areas for review or targeted intervention.
The rise in most states’ IGR reflects positive developments in revenue generation, but the drops in states like Sokoto, Kano, and Oyo highlight challenges. Lagos’ lead and Ebonyi’s growth provide insights for future fiscal planning and policy focus across Nigeria.
