Lagos State retained its position as Nigeria’s biggest internally generated revenue earner in 2025, recording ₦1.77 trillion as combined IGR across the 36 states and the Federal Capital Territory climbed to ₦5.15 trillion.
Figures contained in a National Bureau of Statistics report showed that the nationwide total represented a 40.93 per cent increase from the ₦3.65 trillion generated in 2024.
The data, which the report said were sourced from the Nigeria Revenue Service, revealed a significant concentration of internally generated revenue among a relatively small number of states.
Rivers, Enugu Follow Lagos
Rivers State ranked second with ₦428.42 billion, while Enugu followed with ₦406.77 billion.
The Federal Capital Territory generated ₦356.34 billion, while Ogun State recorded ₦252.36 billion.
Delta generated ₦202.49 billion, followed by Edo with ₦132.21 billion, Oyo with ₦103.25 billion and Kano with ₦102.26 billion.
At the lower end of the table, Taraba generated ₦28.16 billion, Benue ₦29.57 billion and Zamfara ₦30.07 billion.
Kebbi recorded ₦31.23 billion, Nasarawa ₦32.57 billion, Adamawa ₦33.76 billion and Borno ₦36.36 billion.
The difference between Lagos and many other states highlights the uneven distribution of economic activity and taxable income across Nigeria.
PAYE Dominates State Tax Revenue
Taxes remained the largest component of internally generated revenue.
Pay As You Earn tax generated ₦2.64 trillion, accounting for 69.51 per cent of total tax revenue collected by the states during the year, according to the report.
PAYE is primarily deducted from salaries of employees in the formal sector, meaning states with larger formal labour markets generally have a stronger tax base.
Lagos’ performance reflects its position as Nigeria’s largest commercial centre, with a concentration of businesses, financial institutions, industries and formal-sector employment.
The wider 40.93 per cent increase in subnational IGR could provide states with greater resources for infrastructure and public services, although the figures also demonstrate substantial differences in individual states’ capacity to generate revenue independently.
For states with relatively small tax bases, expanding economic activity and formal employment remains critical to reducing dependence on federally distributed revenue.
