NBS Data: Lagos, Rivers, FCT lead as they generated N1.93tn in IGR
NIGERIA, Oct. 24 – Nigeria states of Lagos, Rivers, and the Federal Capital Territory (FCT) top the chart of the total Internally Generated Revenue (IGR) in the country collectively grew to N1.93tn in 2022.
According to the data obtained from National Bureau of Statistics (NBS) on Monday, it shows that the states could only raise their IGR by 1.57 % from the N1.89tn they recorded in 2021.
Break down of the IGRs by the states showed that the commercial state of the South-West, Lagos generated N651.15bn, while the oil rich state of the South-South Rivers generated N172.82bn, the FCT figure was N124.37bn, Ogun generated N120.58bn, and Delta state value was N85.90bn which marked the top five states in terms of revenue generated.
While the least states in terms of IGR are Kebbi – N9.15bn , Taraba – N10.24bn, Yobe – N10.46bn, Ebonyi – N12.43bn, and Katsina – N13.06bn.
According to the NBS, the 2022 IGR figures for the states had two major revenue sources namely, taxes and Ministries, Departments and Agencies’ revenue.
It noted that the taxes sub-category recorded in the period included Pay As You Earn (PAYE), direct assessment, road taxes, stamp duties, capital gain tax, withholding taxes, other taxes and LGAs revenue.
It said, “PAYE was the most contributing revenue source during the year, recorded 67.62 per cent share to the total tax generated revenues nationwide. While capital gains tax was the least in the year under review with 0.24 per cent share to total tax revenue.
“Oyo, Lagos, and Jigawa states were the three leading states with the highest LGA revenue reported during the year. The states recorded N11.83bn, N11.51bn, and N8.70bn respectively.”
Further details shows that total PAYE collected in 2022 was N994.41bn, direct assessment tax amounted to N52.35bn, road taxes was N24.57bn, stamp duties was N27.13bn, capital gain tax was N3.52bn, withholding tax was N139.91bn, other taxes amounted to N179.95bn, LGA revenue amounted to N48.71bn, and the states made N455.07bn from their MDAs.
Despite the growth in IGR, states relied heavily, as in other years, on allocations from the Federal Government in 2022. Total FAAC allocation to states, excluding the FCT, was N3.16tn, 63.73 per cent more than the total states’ IGR for the year. In 2022, states domestically borrowed N870bn to augment their expenses.
It was observed that in 2022, only 11 states including the FCT attracted foreign investors with the others losing out on investment opportunities.
The data is expected to be better in 2023, however with the rate inflation and other economic indices not looking favourable, we can’t predict what the year will look like. Some experts projects increase, because of the elections which saw some state stepped up it tax to boost revenue.
