Lagos Leads As Nigeria’s States and FCT Increase IGR by 40.93% to N5.15trn
- Nigeria's 36 states and the FCT combined to generate N5.15 trillion in IGR in 2025, marking a sharp rise from the previous year
- Lagos led all jurisdictions with N1.77 trillion, while Yobe recorded the lowest figure among all states
- PAYE emerged as the single largest source of tax revenue, contributing more than two-thirds of total tax collections
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria's 36 states and the Federal Capital Territory (FCT) collectively raised N5.15 trillion in internally generated revenue (IGR) in 2025, up 40.93% from the N3.65 trillion recorded the previous year, according to the 2025 IGR report tracking revenue from taxes and Ministries, Departments and Agencies (MDAs).
Tax revenue made up 73.64% of the national IGR total, with Pay-As-You-Earn (PAYE) contributions accounting for the largest portion.
Source: Getty Images
Lagos tops states with N1.77 trillion IGR
The figures released by National Bureau of Statitics showed that Lagos retained its position as the highest-earning state, bringing in N1.77 trillion in 2025 compared with N1.26 trillion in 2024.
This represents more than one-third of the combined total for all 36 states and the FCT.
Rivers State came second with N428.42 billion, up from N317.30 billion, while Enugu climbed to third place with N406.77 billion, rising from N282.36 billion in the prior year.
The FCT ranked fourth at N356.34 billion and Ogun fifth at N252.36 billion.
The top by IGR in 2025 were:
- Lagos – N1.77 trillion
- Rivers – N428.42 billion
- Enugu – N406.77 billion
- FCT – N356.34 billion
- Ogun – N252.36 billion
- Delta – N202.49 billion
- Edo – N132.21 billion
- Oyo – N103.25 billion
- Kano – N102.26 billion
- Akwa Ibom – N100.80 billion
Yobe records lowest IGR among all states
At the other end of the scale, Yobe generated just N16.01 billion, the lowest of any jurisdiction. Ebonyi followed with N17.18 billion, and Sokoto rounded out the bottom three with N20.48 billion.
The 10 jurisdictions with the lowest IGR in 2025 were:
- Yobe – N16.01 billion
- Ebonyi – N17.18 billion
- Sokoto – N20.48 billion
- Taraba – N28.16 billion
- Benue – N29.57 billion
- Zamfara – N30.07 billion
- Kebbi – N31.23 billion
- Nasarawa – N32.57 billion
- Adamawa – N33.76 billion
- Borno – N36.36 billion
Source: Facebook
PAYE was the dominant revenue source nationally, generating N2.64 trillion and accounting for 69.51% of total tax revenue for the year.
Other sources included direct assessment, road taxes, stamp duties, withholding taxes and capital gains tax, which was the smallest contributor at N12.40 billion.
Company income tax in Nigeria drops by 8% to N1.37trn
Earlier, Legit.ng reported that the National Bureau of Statistics (NBS) has revealed that Nigeria’s Company Income Tax (CIT) collections stood at N1.37 trillion in Q1 2026, representing an 8.08% decline from the N1.49 trillion recorded in Q4 2025.
This was disclosed in the bureau’s latest Company Income Tax report covering Q1 2026.
The data shows that total CIT collections were driven by both domestic and foreign payments across key sectors of the economy.
Source: Legit.ng
