28 total operational free zones span across 13 states plus the FCT, highlighting a broad but uneven distribution.
Lagos hosts 12 zones, over 40% of Nigeria’s total, making it the clear leader.
Ogun State ranks second with 3 zones, followed by Rivers with 2, while other states have just 1 each.
This distribution underscores a heavy clustering in the Southwest, reflecting Lagos’ dominance as a commercial hub and a drive to spread investment across various regions.
The South-South remitted ₦121.84B, making it one of the biggest net donors to the national VAT pool.
The region received only ₦52.49B, meaning it got back just 43% of its VAT contributions.
Rivers State alone remitted a staggering ₦90.21B (74% of the region’s total) but received only ₦11.01B (12.2% return), marking one of the worst VAT allocation disparities in Nigeria.
Cross River had the lowest VAT contribution (₦1.55B) but received ₦7.45B, a 380% gain, while Bayelsa, despite remitting ₦12.8B, received only ₦8.02B, less than lower-remitting states like Delta (₦9.05B).
Every state in the South-South received more than it remitted, except for Bayelsa and Rivers, with the latter being the only state to suffer a massive VAT deficit.
Lagos led Nigerian states with ₦815.9 billion in Internally Generated Revenue for 2023, followed by the FCT with ₦211.1 billion.
Despite only a 25% growth, Lagos’ IGR confirms its economic dominance. The FCT, meanwhile, recorded an impressive 70% increase.
Ebonyi, though with lower revenue, achieved an astonishing 148% growth.
Taraba generated the least revenue, increasing by 6%.
In 2022, employees in Lagos, Rivers, and the FCT contributed ₦558.7 billion in PAYE tax, representing over half of the nation's total.
Lagos State alone accounted for ₦360.9 billion.
These figures underscore the tax contributions from Nigeria's key economic regions.
Lagos State led Nigeria’s 2022 PAYE tax collections, surpassing the total of 32 other states combined.
PAYE, a tax on employees’ income, saw Lagos contributing 36%, far ahead of Rivers State (11%) and the FCT (∼9%).
This highlights the economic disparity across states.
Data from Nigeria's National Bureau of Statisticsshows that the Federal Allocation Account Committee (FAAC) disbursed at least ₦32.8 trillion net to the 36 states and the FCT since 2011.
Five of Nigeria's oil-producing states — Delta, Akwa Ibom, Rivers, Bayelsa, and Lagos — have received 33.7% of the country's net federal allocation since 2011, with Delta State receiving the most. Kano, Katsina, Borno, Kaduna, and Ondo complete the top ten.
