By Ayobami Ayorinde, Maryam Ibrahim and Seyi Akinbodewa  | Internally Generated Revenue (IGR) remains a critical indicator of the fiscal sustainability and economic independence for subnational governments. It shows how well each state can raise funds on its own beyond what it receives from the federation pool and how that capacity continues to change over time.

Over the past five years (2020–2024), many states and the Federal Capital Territory (FCT) have made notable progress in revenue generation despite economic headwinds. This report takes a closer look at how much each state has generated over the five-year period, the pace of growth, and the regional patterns that have emerged. It draws insights from state-level data to assess fiscal capacity, identify top-performing regions, and track year-on-year changes.

State-Level IGR Performance from 2020-2024

Nigeria’s 36 states and the FCT collectively grew their IGR by 132.7% in nominal terms in five years, from ₦1.56 trillion in 2020 to ₦3.63 trillion in 2024. Between 2023 and 2024 alone, total IGR rose by 49%.

Lagos State remained far ahead of the pack, generating ₦4.1 trillion between 2020 and 2024 which is about 36.2% of the total IGR by the states and FCT. Lagos was followed by Rivers State (₦926.1 billion) and the FCT (₦841.8 billion). At the bottom of the table were Kebbi (₦61.5 billion), Taraba (₦56.3 billion), and Yobe (₦48 billion).

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Together, Rivers, FCT, Ogun, and Delta states accounted for 25.1% of all IGR generated, while the remaining 32 states contributed 38.6%. In total, 23 states earned between ₦100 billion and ₦500 billion; 10 states made below ₦100 billion; and only four states crossed the ₦500 billion mark.

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By zone, the South West generated a combined ₦5.4 trillion, followed by the South South (₦2.2 trillion) and the North West (₦1.03 trillion). The South West without Lagos generated ₦1.3tn, which is more than what each of four zones (North Central, North East, North West, and South East) generated. Notably, the FCT (₦841.8 billion) generated more than each of these geo-political zones: South East (₦754 billion), North Central (₦728.1 billion), and North East (₦461.2 billion).

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When nominal figures for 2020 and 2024 are compared, Enugu and Bayelsa stood out with remarkable IGR growth rates of 663.4% and 425.5% respectively. Eight other states and the FCT also recorded increases above 200%, while Ebonyi State was the only one to post a decline of 17.1%.

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In the North Central, Kwara had the highest growth rate at 262.8%. Notably, Benue and Niger had about the same IGR in 2020. However, Niger's IGR in 2024 surpassed that of Benue by 70%. Meanwhile, in the North East, Bauchi had the highest growth at 148.7% while Yobe had the lowest increase at 62.7%.

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In the North West, Sokoto and Katsina had about the same IGR in 2020. However, Katsina's IGR in 2024 surpassed that of Sokoto by 89%. Additionally, Kano which had the second highest IGR by value in 2020 rose to become the first in 2024. In the South East, Enugu went from ₦23.6 billion in 2020 to ₦180.5 billion in 2024. Ebonyi and Abia had about the same IGR in 2020. In 2024, however, Abia's IGR surpassed that of Ebonyi by 203%. Notably, Ebonyi recorded a decrease in IGR by 17.1% in 2024 against 2020.

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In the South South zone, Rivers and Delta recorded a significant increase in IGR by value from 2020 to 2024. In terms of percentage, Bayelsa had a 425.5% rise, followed by Edo at 225.3%. In the South West, Lagos went from ₦660 billion in 2020 to ₦1.3 trillion in 2024, almost doubling in nominal value. However, Ogun had the highest percentage increase at 285.5%, followed by Ekiti at 233.5%.

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Finally, the table below shows the year-by-year IGR by each state within the five-year period.

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Conclusion

The remarkable 133% growth in IGR from 2020 to 2024 shows that many states are making significant progress in broadening their revenue base and boosting fiscal capacity. This steady growth is a positive signal for subnational public finance. To keep this momentum, states and the FCT will need to enhance tax administration and strengthen revenue mobilisation at all levels. With the new tax laws expected to reduce PIT rates for many formal sector workers from 2026, states may see a drop in IGR since PAYE currently makes up nearly half of total IGR. This makes it very crucial for states to formalise informal sector activities and bring more people into the tax net to maintain steady growth.