The National Bureau of Statistics, NBS, has revealed an increase in the internally generated revenue, IGR, by States in the 2023.
The Bureau reports that the IGR for 2023 reached N2.43 trillion. Reflecting a 26.03 per cent increase from N1.93 trillion in 2022. This is even as States amplified efforts to boost local revenues amid fiscal pressures.
According to the report, Lagos, FCT, and Rivers led in IGR generation in the year under review. The three States collectively produced over N1 trillion—accounting for more than 41 per cent of the IGR generated by States. This is even as States like Abia was not mentioned in the report.
“Lagos contributed approximately 33.6 per cent of the total IGR with N815.86 billion. While the FCT and Rivers accounted for 8.7 percent and 8 percent with N211.10 billion and N195.41 billion, respectively.
The report by the NBS categorized IGR into two main sources: taxes and revenue generated by Ministries, Departments, and Agencies (MDAs).
Taxes, which include pay-as-you-earn (PAYE), direct assessment, road taxes, stamp duties, and capital gains tax, constituted about 80 per cent of total IGR nationwide.
PAYE emerged as the largest single source of tax revenue, accounting for N1.24 trillion. Or roughly 63.83 per cent of the total tax income.
This highlights the reliance on employee-based tax collections across the States. Particularly in economically active regions such as Lagos and the FCT.”
According to the report, Ogun State, with N146.87 billion in IGR, came fourth. It generated N71.67 billion from taxes and N75.19 billion from MDAs.
Delta State came fifth with total generated IGR of N114.08 billion. With N90.91 billion from taxes and N23.17 billion from MDAs.
Edo State came sixth with N64.67 billion in 2023, comprising N46.17 billion from taxes and N18.5 billion from MDAs.
On the seventh position is Kaduna State whose IGR rose to N62.49 billion in 2023. The State’s IGR showed an increase of over N4 billion from N58.09 billion in 2022. Of the 2023 total, N49.02 billion came from taxes, while N13.46 billion was from MDAs.
Kwara State sat on the eight position, with N59.64 billion in IGR for 2023. This included N23.12 billion from taxes and N36.51 billion from MDAs.
The NBS, however, drew attention to the unique structure of Kwara State’s MDA revenue. It stated that MDAs included exceptional items such as collections from pilgrimage fees.
Oyo State came ninth with recorded N52.74 billion in Internally Generated Revenue for 2023. Out of which, N40.52 billion was derived from taxes and N12.12 billion from MDAs.
Akwa Ibom came tenth with N43.18 billion total internally generated revenue (IGR) in 2023. The amount consisted of N36.07 billion from taxes and N7.11 billion from MDAs.
NBS reported that while the top-performing States witnessed substantial gains, several States continued to lag behind in revenue generation.
The report stated that Taraba, Yobe, and Kebbi were among the lowest IGR generating States. Taraba generated N10.87 billion, Yobe N11.74 billion, and Kebbi N11.74 billion.
source: Premium Times
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