Lagos leads as States, FCT record N5.15trn IGR in 2025

Nigeria’s 36 states and the Federal Capital Territory (FCT) generated a combined N5.15 trillion in internally generated revenue (IGR) in 2025, representing a 40.93 per cent increase from the N3.65 trillion recorded in 2024.

The latest IGR figures show that the 10 highest-generating jurisdictions accounted for N3.85 trillion, representing nearly 75 per cent of the national total and a 42.67 per cent increase from the N2.70 trillion recorded by the same group in 2024.

Lagos State maintained its position as the country’s largest IGR generator, while Rivers and Enugu followed. The three jurisdictions collectively generated about N2.60 trillion, or roughly half of the total revenue recorded by all states and the FCT.

Lagos maintains commanding lead

Lagos generated N1.77 trillion in 2025, up from N1.26 trillion in 2024, representing a 40.24 per cent increase.

The state accounted for 34.36 per cent of the combined IGR of the 36 states and FCT.

Tax revenue contributed N1.48 trillion, or 83.5 per cent of Lagos’ IGR, while Ministries, Departments and Agencies (MDAs) generated N292.64 billion.

Pay-As-You-Earn (PAYE) was the largest individual source at N993.31 billion, followed by withholding tax at N291.08 billion.

Rivers retained second place with N428.42 billion, representing a 35.02 per cent increase from N317.30 billion in 2024. Tax revenue accounted for N414.38 billion, with PAYE contributing N359.21 billion.

Enugu records biggest growth

Enugu recorded the strongest growth among the leading revenue-generating jurisdictions, with IGR rising from N180.50 billion in 2024 to N406.77 billion in 2025.

READ ALSO; Lagos IGR hits N103.4bn in first quarter of 2018

The N226.27 billion increase represented a 125.36 per cent growth, moving the state from fifth to third position.

Unlike most states, Enugu’s revenue was dominated by MDAs, which generated N355.25 billion, representing 87.3 per cent of its total IGR. Tax revenue stood at N51.52 billion.

The Enugu State Government has attributed the increase to technology-driven revenue collection, e-payment systems, expansion of the tax base and measures to reduce revenue leakages.

FCT, Ogun, Delta among top earners

The FCT generated N356.34 billion, up 26.20 per cent from N282.36 billion in 2024.

PAYE accounted for N320.15 billion, making it the dominant source of revenue in the territory.

Ogun recorded N252.36 billion, an increase of 29.46 per cent from N194.93 billion. Interestingly, MDA revenue of N141.06 billion exceeded its tax revenue of N111.29 billion.

Delta generated N202.49 billion, representing a 28.33 per cent increase from N157.79 billion in 2024. Tax revenue accounted for N172.39 billion, with PAYE contributing N139.66 billion.

Edo recorded N132.21 billion, up 45.04 per cent from N91.15 billion, while Oyo posted N103.25 billion, representing a 58.14 per cent increase from N65.29 billion.

Kano generated N102.26 billion, up 36.76 per cent, while Akwa Ibom rounded off the top 10 with N100.80 billion, representing a 33.04 per cent increase.

Tax revenue remains dominant

At the national level, tax revenue accounted for the largest share of state-generated income.

Tax collections rose to approximately N3.79 trillion in 2025, from N2.68 trillion in 2024, representing 41.2 per cent growth.

MDAs generated N1.36 trillion during the year, compared with N968.16 billion in 2024.

PAYE remained the largest individual tax component, generating N2.64 trillion, followed by withholding tax at N503.46 billion.

The figures underline the importance of formal employment, payroll taxation and state-level economic activity to the finances of Nigeria’s subnational governments, while also showing significant differences in the revenue structures of individual states.