Nigeria's Internally Generated Revenue (IGR) surged to N5.15 trillion in 2025, marking a significant 40.93% increase from the N3.65 trillion recorded in 2024. The top 10 revenue-generating states contributed a substantial N3.85 trillion, representing nearly 75% of the national total.
Lagos State continued to dominate as the largest revenue generator, contributing over N1.77 trillion, which is more than the combined IGR of 22 other states. Rivers and Enugu followed, with the three states collectively accounting for about 50.6% of the national IGR.
The revenue composition showed a notable shift, with tax revenue remaining the primary source. However, Ministries, Departments, and Agencies (MDAs) made significant contributions, particularly in Enugu. Overall, tax revenue reached N3.79 trillion, while MDAs generated N1.36 trillion, reflecting a remarkable growth in both sectors.
Key contributors to the IGR included PAYE, which alone generated N2.64 trillion, underscoring the importance of formal employment and payroll taxation for state finances. Other states like Oyo and Edo also demonstrated impressive growth, driven by urban expansion and improved revenue collection mechanisms.
This data highlights the growing economic potential of Nigeria's states and the critical role of effective tax and revenue management in enhancing fiscal sustainability and development.